Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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

Form 10-Q.

In this report, references to “Blackstone,” the “Company,” “we,” “us” or “our” refer to Blackstone Inc. and its consolidated subsidiaries.

Our Business

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

Our business is organized into four segments:

Real Estate

Our Real Estate business is a global leader in real estate investing. Our Real Estate segment operates as one globally integrated business, with investments across the globe, including in the Americas, Europe and Asia. Our real estate investment teams seek to utilize our global expertise and presence to generate attractive risk-adjusted returns for our investors.

Our Blackstone Real Estate Partners (“BREP”) business is geographically diversified and targets a broad range of opportunistic real estate and real estate-related investments. The BREP platform includes global funds as well as funds focused specifically on Europe or Asia investments. BREP seeks to invest thematically in high-quality assets, focusing where we see outsized growth potential driven by global economic and demographic trends. BREP has made significant investments in logistics, data centers, rental housing, hospitality, office and retail properties around the world, as well as in a variety of real estate operating companies.

Our Core+ real estate strategy invests in substantially stabilized real estate globally primarily through perpetual capital vehicles. Our Core+ real estate strategy includes our (a) Blackstone Property Partners (“BPP”) funds, which focus on high-quality assets in the Americas, Europe and Asia and (b) our non-listed REIT, Blackstone Real Estate Income Trust, Inc. (“BREIT”) and our Blackstone European Property Income (“BEPIF”) vehicles, which provide income-focused individual investors access to institutional quality real estate primarily in the Americas and Europe, respectively.

Our Blackstone Real Estate Debt Strategies (“BREDS”) platform primarily targets real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate and mezzanine loans and liquid real estate-related debt securities. The BREDS platform includes high-yield real estate debt funds, liquid real estate debt funds, capital managed on behalf of our Credit & Insurance segment’s insurance platform and Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed REIT.

Effective the third quarter of 2024, the residential debt business was transferred from Real Estate to Credit & Insurance to align with a change in Blackstone’s management of those businesses. This organizational change resulted in a decrease (reflected as an outflow) for September 30, 2024 to Real Estate Total and Fee-Earning Assets Under Management and an increase (reflected as a contra-outflow) to Credit & Insurance Total and Fee-Earning Assets Under Management (the “Residential Debt Transfer”). These changes do not impact Blackstone’s Total or Fee-Earning Assets Under Management or outflows in total.

Private Equity

Our Private Equity segment includes our Corporate Private Equity business, which consists of: (a) our global private equity funds, Blackstone Capital Partners (“BCP”), (b) our sector-focused funds, including our energy- and energy transition-focused funds, Blackstone Energy Transition Partners (“BETP”), (c) our Asia-focused private equity funds, Blackstone Capital Partners Asia and (d) our core private equity funds, Blackstone Core Equity Partners (“BCEP”). Our Private Equity segment also includes (a) our opportunistic investment platform that invests flexibly across asset classes, industries and geographies, Blackstone Tactical Opportunities (“Tactical Opportunities”), (b) our secondary funds business, Strategic Partners Fund Solutions (“Strategic Partners”), and our business that targets minority investments in the general partners of private equity and other private market alternative asset management firms (“GP Stakes”) as “Secondaries,” (c) our infrastructure-focused funds, Blackstone Infrastructure Partners (“BIP”), including vehicles primarily focused in the U.S. (“BIP U.S.”) and in Europe (“BIP Europe”), (d) our life sciences investment platform, Blackstone Life Sciences (“BXLS”), (e) our growth equity investment platform, Blackstone Growth (“BXG”), (f) our investment platform offering eligible individual investors access to Blackstone’s private equity capabilities, the Blackstone Private Equity Strategies Fund Program (“BXPE”), (g) our multi-asset investment program for eligible high net worth investors offering exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment, Blackstone Total Alternatives Solution (“BTAS”) and (h) our capital markets services business, Blackstone Capital Markets (“BXCM”).

We are a global leader in private equity investing. Our Corporate Private Equity business pursues transactions across industries on a global basis. It strives to create value by investing in great businesses where our capital, strategic insight, global relationships and operational support can drive transformation. Corporate Private Equity’s investment strategies and core themes continually evolve in anticipation of, or in response to, changes in the global economy, local markets, regulation, capital flows and geopolitical trends. We seek to construct a differentiated portfolio of investments with a well-defined, post-acquisition value creation strategy. Similarly, we seek investments that can generate strong unlevered returns regardless of entry or exit cycle timing.

BCEP pursues control-oriented investments in high-quality companies with durable businesses and seeks to offer a lower level of risk and a longer hold period than traditional private equity.

Tactical Opportunities pursues a thematically driven, opportunistic investment strategy. Our flexible, global mandate enables us to find differentiated opportunities across asset classes, industries and geographies and invest behind them with the frequent use of structure to generate attractive risk-adjusted returns. Tactical Opportunities’ ability to dynamically shift focus to the most compelling opportunities in any market environment, combined with the business’ expertise in structuring complex transactions, enables Tactical Opportunities to invest in attractive market areas, often with securities that provide downside protection and maintain upside return.

Secondaries is comprised of our Strategic Partners and GP Stakes businesses. Strategic Partners is a total fund solutions provider. As a secondary investor, it acquires interests in high-quality private funds from original holders seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and growth capital, credit and other types of funds, as well as general partner-led transactions and primary investments and co-investments with financial sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments in private funds and co-investments. Effective the second quarter of 2024, our GP Stakes business moved from our Multi-Asset Investment segment to our Private Equity segment. GP Stakes targets minority investments in the general partners of private equity and other private market alternative asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation.

BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure, transportation, digital infrastructure and water and waste. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield.

BXLS invests across the life cycle of companies and products within the life sciences sector. BXLS primarily focuses on investments in life sciences products in late-stage clinical development within the pharmaceutical, biotechnology and medical technology sectors.

BXG seeks to deliver attractive risk-adjusted returns by investing in dynamic, growth-stage businesses, with a focus on the consumer, consumer technology, enterprise solutions, financial services and healthcare sectors.

BXPE invests primarily in privately negotiated, equity-oriented investments, leveraging the talent and investment capabilities of Blackstone’s private equity platform to create an attractive portfolio of alternative investments diversified across geographies and sectors for eligible individual investors.

Credit & Insurance

Effective January 1, 2024, our corporate credit (formerly Blackstone Credit or BXC), asset based finance and insurance (“insurance platform” and formerly Blackstone Insurance Solutions or BIS) groups were integrated into a single new unit, Blackstone Credit & Insurance (“BXCI”). BXCI offers its clients and borrowers a comprehensive solution across corporate and asset based, as well as investment grade and non-investment grade, private credit. BXCI is one of the largest credit-oriented managers and CLO managers in the world. The investment portfolios of the funds BXCI’s credit platform manages or sub-advises consist primarily of loans and securities of non-investment and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.

BXCI is organized into three overarching credit investing strategies: private corporate credit, liquid corporate credit and infrastructure and asset based credit. The private corporate credit strategies include mezzanine and direct lending funds and stressed/distressed strategies. The direct lending funds include Blackstone Private Credit Fund (“BCRED”) and Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”). The liquid corporate credit strategies consist of CLOs, closed-ended funds, open-ended funds, systematic strategies and separately managed accounts. The infrastructure and asset based credit strategies include our private placement strategies, energy strategies (including the sustainable resources platform) and asset based finance strategies focused on privately originated, income-oriented credit assets secured by physical, financial or residential real estate collateral.

Our insurance platform focuses on providing full investment management services for insurers’ general accounts, seeking to deliver customized and diversified portfolios that include allocations to Blackstone managed products and strategies across asset classes and Blackstone’s private credit origination capabilities. Through this platform, we provide our clients tailored portfolio construction and strategic asset allocation, seeking to generate risk-managed, capital-efficient returns, diversification and capital preservation that meets clients’ objectives. We also provide similar services to clients through separately managed accounts or by sub-managing assets for certain insurance-dedicated funds and special purpose vehicles. Through the insurance platform, we currently manage assets for clients that include Corebridge Financial Inc., Everlake Life Insurance Company, Fidelity & Guaranty Life Insurance Company and Resolution Life Group, among others.

Multi-Asset Investing

Effective the first quarter of 2024, our Hedge Fund Solutions segment was renamed “Multi-Asset Investing.” Our Multi-Asset Investing segment seeks to grow investors’ assets through investment strategies designed to deliver, primarily through the public markets, compelling risk-adjusted returns. Blackstone Multi-Asset Investing (“BXMA”) is the world’s largest discretionary allocator to hedge funds. BXMA is organized into two primary platforms: Absolute Return and Multi-Strategy. Absolute Return is designed to pursue consistent, efficient and diversifying returns across multiple market environments. Absolute Return manages a broad range of commingled and customized fund solutions, a seeding business and registered funds that provide alternative asset solutions through daily liquidity products. Multi-Strategy aims to generate strong risk-adjusted returns through opportunistic, asset-class agnostic investing, including structured risk transfer and equity capital markets strategies. Effective the second quarter of 2024, our Multi-Asset Investing segment also includes a platform managed by Harvest Fund Advisors LLC (“Harvest”), which was previously part of the Credit & Insurance segment. Harvest primarily invests in publicly traded energy infrastructure, renewables and master limited partnerships holding midstream energy assets in North America.

Business Environment

Blackstone’s businesses are materially affected by conditions in the financial markets and economic conditions in the U.S., Europe, Asia and, to a lesser extent, elsewhere in the world.

Most major equity markets appreciated in the third quarter of 2024, reflecting continued resilience of the global economy and improving investor sentiment following central banks’ interest rate reductions. The total return of the S&P 500 index was 5.9%, led by utilities and real estate, which increased 19.4% and 17.2%, respectively. The energy sector decreased 2.3% on lower energy prices, with the price of West Texas Intermediate crude oil down 16% to $68.17 per barrel. Equity market volatility increased, with the CBOE Volatility Index up 34.5%. Credit markets appreciated as well, with the S&P leveraged loan index up 2.1% and the Credit Suisse high yield bond index up 4.8%. High yield spreads tightened by 7 basis points sequentially, while issuance increased 95% year-over-year.

In the U.S., inflation continued to decelerate in the third quarter, with September CPI of 2.4% down sharply from the prior peak of 9.1% in June 2022 and down from 3.0% in June 2024. For the first time since March 2020, the Federal Reserve lowered the federal funds target range by 50 basis points in September to 4.75-5.00% in light of the progress on inflation and the balance of risks. The Federal Reserve has stated it is not on a preset course for reductions, but has indicated that additional, smaller cuts this year are likely if economic data remains consistent. The ten-year U.S. Treasury yield decreased 61 basis points to 3.78% but subsequently increased to 4.28% as of October 28, 2024. Meanwhile, short-term yields moved lower, with three-month SOFR down 37 basis points to 4.96% and further declined to 4.82% as of October 28, 2024.

The advance estimate of U.S. annualized GDP growth for the third quarter was 2.8%, demonstrating continued resilience of the U.S. economy. Wages increased 4.0% year-over-year in September 2024, while re

tail

sales rose 1.7% year-over-year. In manufacturing, the ISM Manufacturing PMI decreased from 48.5 to 47.2 quarter over quarter. Following a strong September jobs report that exceeded economists’ expectations, job creation stalled in October 2024 amid weather disruptions and labor strikes. The unemployment rate, however, remained relatively steady at 4.1%.

Outside of the U.S., many central banks have been loosening monetary policy. The European Central Bank lowered its deposit facility rate by 25 basis points in the third quarter to 3.50% and an additional 25 basis points to 3.25% in October, its first consecutive reduction since 2011. Eurozone inflation slowed to 1.7% year-over-year in September 2024, down from a peak of 10.6% in October 2022 and from 2.5% in June 2024. The Bank of England also lowered its bank rate by 25 basis points in the third quarter to 5.0%, as U.K. inflation slowed to 1.7% year-over-year in September 2024—down from a peak of 11.1% and 2.0% in October 2022 and June 2024, respectively. By contrast, the Bank of Japan further increased its policy rate to 0.25% in July following its first increase in 17 years in March 2024.

Capital markets activity levels in the U.S. improved on a year-to-date basis but remained at historically lower levels. While rising 68% year-over-year, U.S. initial public offering volumes year to date remained 87% below the comparable period in 2021. U.S. announced merger and acquisition deal volumes year to date similarly increased 17% year-over-year but remained 42% below the comparable period in 2021.

Amid moderating inflation, declining cost of capital and a healthy labor market, many economic analysts forecast a soft-landing for the U.S. economy. While this should support global economic growth over time, the outlook remains uncertain given continued geopolitical turbulence, including ongoing wars in the Middle East and Ukraine, concern over whether China’s stimulus measures will effectively stabilize slowing economic growth in the country, and upcoming elections. In the U.S., the Presidential election creates the potential for governmental policy and regulatory changes in a variety of areas, which could impact such economic outlook.

Organizational Structure

The simplified diagram below depicts our current organizational structure. The diagram does not depict all of our subsidiaries, including intermediate holding companies through which certain of the subsidiaries depicted are held.

Key Financial Measures and Indicators

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

Distributable Earnings

Distributable Earnings is derived from Blackstone’s segment reported results. Distributable Earnings is used to assess performance and amounts available for dividends to Blackstone stockholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. Distributable Earnings is the sum of Segment Distributable Earnings plus Net Interest and Dividend Income (Loss) less Taxes and Related Payables. Distributable Earnings excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Distributable Earnings.

Net Interest and Dividend Income (Loss) is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of consolidation of Blackstone Funds, and interest expense associated with the tax receivable agreement.

Taxes and Related Payables represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and including the payable under the tax receivable agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and Distributable Earnings reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Segment Distributable Earnings and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related and Non-Recurring Items where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone’s Consolidated Statements of Operations under GAAP, excluding the impact of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. Management believes that including the amount payable under the tax receivable agreement and utilizing the current income tax provision adjusted as described above when calculating Distributable Earnings is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to stockholders.

Segment Distributable Earnings

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

Net Realizations is presented on a segment basis and is the sum of Realized Principal Investment Income and Realized Performance Revenues (which refers to Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation (which refers to Realized Performance Compensation excluding Fee Related Performance Compensation and Equity-Based Performance Compensation).

Realized Performance Compensation reflects an increase in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to them. The expectation is that for the full year 2024, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year. During the three and nine months ended September 30, 2024, Realized Performance Compensation increased by $21.6 million and $77.6 million, respectively, and Fee Related Compensation decreased by $21.3 million and $63.8 million, respectively. These changes to Realized Performance Compensation and Fee Related Compensation reduced Net Realizations, increased Fee Related Earnings and had a

negative impact to Income Before Provision for Taxes and Distributable Earnings in the three and nine months ended September 30, 2024. These changes are not expected to impact Income Before Provision for Taxes and Distributable Earnings for the year ending December 31, 2024. Changes to Realized Performance Compensation and Fee Related Compensation had an impact on individual quarters in 2023 but did not impact Income Before Provision for Taxes and Distributable Earnings for the year ended December 31, 2023.

Effective during the three months ended June 30, 2024, GP Stakes is included in our Private Equity segment and Harvest is included in our Multi-Asset Investing segment. Previously, GP Stakes and Harvest were included in our Multi-Asset Investing and Credit & Insurance segments, respectively. All prior periods have been recast to reflect this reclassification.

Fee Related Earnings

Fee Related Earnings is a performance measure 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. Blackstone believes Fee Related Earnings is useful to stockholders as it provides insight into the profitability of the portion of Blackstone’s business that is not dependent on realization activity. Fee Related Earnings equals management and advisory fees (net of management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment basis and (b) Other Operating Expenses. Fee Related Earnings is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Fee Related Earnings.

Fee Related Compensation is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation, directly related to (a) Management and Advisory Fees, Net and (b) Fee Related Performance Revenues, referred to as Fee Related Performance Compensation.

Fee Related Performance Revenues refers to the realized portion of Performance Revenues from Perpetual Capital that are (a) measured and received on a recurring basis and (b) not dependent on realization events from the underlying investments.

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

Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization

Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (“Adjusted EBITDA”), is a supplemental measure used to assess performance derived from Blackstone’s segment results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables and (c) Depreciation and Amortization. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Adjusted EBITDA.

Net Accrued Performance Revenues

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

Operating Metrics

The alternative asset management business is primarily based on managing third party capital and does not require substantial capital investment to support rapid growth. Since our inception, we have developed and used various key operating metrics to assess and monitor the operating performance of our various alternative asset management businesses in order to monitor the effectiveness of our value creating strategies.

Total and Fee-Earning Assets Under Management

Total Assets Under Management refers to the assets we manage. We believe this measure is useful to stockholders as it represents the total capital for which we provide investment management services. Our Total Assets Under Management equals the sum of:

	(a)	the fair value of the investments held by our carry funds and our side-by-side and co-investment entities managed by us plus the capital that we are entitled to call from investors in those funds and entities pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods,

	(b)	the net asset value of (1) our hedge funds, real estate debt carry funds, BPP, certain co-investments managed by us, certain credit-focused funds and our Multi-Asset Investing drawdown funds (plus, in each case, the capital that we are entitled to call from investors in those funds, including commitments yet to commence their investment periods) and (2) our funds of hedge funds, our Multi-Asset Investing registered investment companies, BREIT, BEPIF and BXPE,

	(c)	the invested capital, fair value or net asset value of assets we manage pursuant to separately managed accounts,

	(d)	the amount of debt and equity outstanding for our CLOs during the reinvestment period,

	(e)	the aggregate par amount of collateral assets, including principal cash, for our CLOs after the reinvestment period,

	(f)	the gross or net amount of assets (including leverage where applicable) for our credit-focused registered investment companies and BDCs,

	(g)	the fair value of common stock, preferred stock, convertible debt, term loans or similar instruments issued by BXMT and

	(h)	borrowings under and any amounts available to be borrowed under certain credit facilities of our funds.

Our carry funds are commitment-based drawdown structured funds that do not permit investors to redeem their interests at their election. Our funds of hedge funds, hedge funds, funds structured like hedge funds and other open-ended funds in our Real Estate, Credit & Insurance and Multi-Asset Investing segments generally have structures that afford an investor the right to withdraw or redeem their interests on a periodic basis (for example, annually, quarterly or monthly), typically with 2 to 95 days’ notice, depending on the fund and the liquidity profile of the underlying assets. In our perpetual capital vehicles where redemption rights exist, Blackstone has the ability to fulfill redemption requests only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, or (b) to the extent there is sufficient new capital. Investment advisory agreements related to certain separately managed accounts in our Credit & Insurance and Multi-Asset Investing segments, excluding separately managed accounts in our insurance platform, may generally be terminated by an investor on 30 to 95 days’ notice. Separately managed accounts in our insurance platform can generally only be terminated for long-term underperformance, cause and certain other limited circumstances, in each case subject to Blackstone’s right to cure.

Fee-Earning Assets Under Management refers to the assets we manage on which we derive management fees and/or performance revenues. We believe this measure is useful to stockholders as it provides insight into the capital base upon which we can earn management fees and/or performance revenues. Our Fee-Earning Assets Under Management equals the sum of:

	(a)	for our Private Equity segment funds, Real Estate segment carry funds including certain BREDS funds and certain Multi-Asset Investing funds, the amount of capital commitments, remaining invested capital, fair value, net asset value or par value of assets held, depending on the fee terms of the fund,

	(b)	for our credit-focused carry funds, the amount of remaining invested capital (which may include leverage) or net asset value, depending on the fee terms of the fund,

	(c)	the remaining invested capital or fair value of assets held in co-investment vehicles managed by us on which we receive fees,

	(d)	the net asset value of our funds of hedge funds, hedge funds, BPP, certain co-investments managed by us, certain registered investment companies, BREIT, BEPIF, BXPE and certain of our Multi-Asset Investing drawdown funds,

	(e)	the invested capital, fair value of assets or the net asset value we manage pursuant to separately managed accounts,

	(f)	the net proceeds received from equity offerings and accumulated distributable earnings of BXMT, subject to certain adjustments,

	(g)	the aggregate par amount of collateral assets, including principal cash, of our CLOs and

	(h)	the gross amount of assets (including leverage) or the net assets for certain of our credit-focused registered investment companies and BDCs.

Each of our segments may include certain Fee-Earning Assets Under Management on which we earn performance revenues but not management fees.

Our calculations of Total Assets Under Management and Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. In addition, our calculation of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and our personnel, regardless of whether such commitments or invested capital are subject to fees. Our definitions of Total Assets Under Management and Fee-Earning Assets Under Management are not based on any definition of Total Assets Under Management and Fee-Earning Assets Under Management that is set forth in the agreements governing the investment funds that we manage.

For our carry funds, Total Assets Under Management includes the fair value of the investments held and uncalled capital commitments, whereas Fee-Earning Assets Under Management may include the total amount of capital commitments or the remaining amount of invested capital at cost depending on whether the investment period has expired or as specified by the fee terms of the fund. As such, in certain carry funds Fee-Earning Assets Under Management may be greater than Total Assets Under Management when the aggregate fair value of the remaining investments is less than the cost of those investments.

Perpetual Capital

Perpetual Capital refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital. We believe this measure is useful to stockholders as it represents capital we manage that has a longer duration and the ability to generate recurring revenues in a different manner than traditional fund structures.

Dry Powder

Dry Powder represents the amount of capital available for investment or reinvestment, including general partner and employee capital, and is an indicator of the capital we have available for future investments. We believe this measure is useful to stockholders as it provides insight into the extent to which capital is available for Blackstone to deploy capital into investment opportunities as they arise.

Invested Performance Eligible Assets Under Management

Invested Performance Eligible Assets Under Management represents invested capital at fair value, including capital closed for funds whose investment period has not yet commenced, on which performance revenues could be earned if certain hurdles are met. We believe Invested Performance Eligible Assets Under Management is useful to stockholders as it provides insight into the capital deployed that has the potential to generate performance revenues.

Consolidated Results of Operations

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

The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the three and nine months ended September 30, 2024 and 2023:

		Three Months Ended																Nine Months Ended
		September 30,								2024 vs. 2023								September 30,								2024 vs. 2023
		2024				2023				$				%				2024				2023				$				%
		(Dollars in Thousands)
Revenues
Management and Advisory Fees, Net		$	1,794,894			$	1,655,443			$	139,451				8	%		$	5,309,355			$	5,023,128			$	286,227				6	%
Incentive Fees			191,794				158,801				32,993				21	%			559,434				454,754				104,680				23	%
Investment Income (Loss)
Performance Allocations
Realized			414,755				453,690				(38,935	)			-9	%			1,598,913				1,602,668				(3,755	)			—
Unrealized			1,154,918				(63,204	)			1,218,122				n/m				1,723,090				(708,021	)			2,431,111				n/m
Principal Investments
Realized			95,235				94,313				922				1	%			247,877				257,206				(9,329	)			-4	%
Unrealized			(1,864	)			69,340				(71,204	)			n/m				427,983				(257,988	)			685,971				n/m
Total Investment Income (Loss)			1,663,044				554,139				1,108,905				200	%			3,997,863				893,865				3,103,998				347	%
Interest and Dividend Revenue			109,774				109,133				641				1	%			312,612				348,123				(35,511	)			-10	%
Other			(96,312	)			63,769				(160,081	)			n/m				(31,861	)			17,951				(49,812	)			n/m
Total Revenues			3,663,194				2,541,285				1,121,909				44	%			10,147,403				6,737,821				3,409,582				51	%
Expenses
Compensation and Benefits
Compensation			732,041				700,268				31,773				5	%			2,293,491				2,153,570				139,921				6	%
Incentive Fee Compensation			73,464				65,432				8,032				12	%			224,310				192,940				31,370				16	%
Performance Allocations Compensation
Realized			169,740				168,620				1,120				1	%			689,370				670,610				18,760				3	%
Unrealized			465,099				11,866				453,233				3820	%			747,679				(247,228	)			994,907				n/m
Total Compensation and Benefits			1,440,344				946,186				494,158				52	%			3,954,850				2,769,892				1,184,958				43	%
General, Administrative and Other			340,945				279,186				61,759				22	%			1,022,823				827,614				195,209				24	%
Interest Expense			111,337				110,599				738				1	%			328,156				323,136				5,020				2	%
Fund Expenses			3,470				38,934				(35,464	)			-91	%			13,380				118,918				(105,538	)			-89	%
Total Expenses			1,896,096				1,374,905				521,191				38	%			5,319,209				4,039,560				1,279,649				32	%
Other Income (Loss)
Change in Tax Receivable Agreement Liability			—				—				—				n/m				—				1,887				(1,887	)			-100	%
Net Gains (Losses) from Fund Investment Activities			42,842				(49,078	)			91,920				n/m				70,009				102,486				(32,477	)			-32	%
Total Other Income (Loss)			42,842				(49,078	)			91,920				n/m				70,009				104,373				(34,364	)			-33	%
Income Before Provision for Taxes			1,809,940				1,117,302				692,638				62	%			4,898,203				2,802,634				2,095,569				75	%
Provision for Taxes			245,303				196,560				48,743				25	%			789,220				467,504				321,716				69	%
Net Income			1,564,637				920,742				643,895				70	%			4,108,983				2,335,130				1,773,853				76	%
Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities			(22,184	)			(92,577	)			70,393				-76	%			(61,595	)			(81,589	)			19,994				-25	%
Net Income Attributable to Non-Controlling Interests in Consolidated Entities			202,929				20,716				182,213				880	%			406,339				185,021				221,318				120	%
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings			603,057				440,609				162,448				37	%			1,691,604				992,618				698,986				70	%
Net Income Attributable to Blackstone Inc.		$	780,835			$	551,994			$	228,841				41	%		$	2,072,635			$	1,239,080			$	833,555				67	%

n/m  Not meaningful.

Three Months Ended September 30, 2024, Compared to Three Months Ended September 30, 2023

Revenues

Revenues were $3.7 billion for the three months ended September 30, 2024, an increase of $1.1 billion, compared to $2.5 billion for the three months ended September 30, 2023. The increase in Revenues was primarily attributable to an increase of $1.1 billion in Investment Income (Loss), which was primarily due to an increase of $1.1 billion in Unrealized Investment Income (Loss).

The $1.1 billion increase in Unrealized Investment Income (Loss) was primarily attributable to higher unrealized appreciation of investments in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Principal drivers were:

	•		An increase of $834.6 million in our Private Equity segment, primarily attributable to higher unrealized appreciation of Blackstone’s investment in certain Corporate Private Equity funds and GP Stakes funds in the three months ended September 30, 2024, compared to the three months ended September 30, 2023. Corporate Private Equity and GP Stakes funds appreciated 6.2% and 12.6%, respectively, in the three months ended September 30, 2024, compared to 2.4% and 0.9%, respectively, in the three months ended September 30, 2023.

	•		An increase of $310.9 million in our Real Estate segment, primarily attributable to lower unrealized depreciation of Blackstone’s investment in certain BREP funds in the three months ended September 30, 2024, compared to the three months ended September 30, 2023.

Expenses

Expenses were $1.9 billion for the three months ended September 30, 2024, an increase of $521.2 million, compared to $1.4 billion for the three months ended September 30, 2023. The increase was primarily attributable to an increase of $494.2 million in Total Compensation and Benefits, of which $454.4 million was an increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily due to an increase in Investment Income (Loss), on which a portion of compensation is based.

Other Income (Loss)

Other Income (Loss) was $42.8 million for the three months ended September 30, 2024, an increase of $91.9 million, compared to $(49.1) million for the three months ended September 30, 2023. The increase in Other Income (Loss) was due to an increase of $91.9 million in Net Gains (Losses) from Fund Investment Activities.

The increase in Net Gains (Losses) from Fund Investment Activities was principally driven by increases of $81.5 million and $13.3 million in our Real Estate and Private Equity segments, respectively. The increase in our Real Estate segment was primarily driven by lower unrealized depreciation of investments in our consolidated funds. The increase in our Private Equity segment was primarily driven by higher unrealized appreciation of investments in our consolidated funds, partially offset by deconsolidation of a fund.

Nine Months Ended September 30, 2024, Compared to Nine Months Ended September 30, 2023

Revenues

Revenues were $10.1 billion for the nine months ended September 30, 2024, an increase of $3.4 billion, compared to $6.7 billion for the nine months ended September 30, 2023. The increase in Revenues was primarily attributable to an increase of $3.1 billion in Investment Income (Loss), which was primarily composed of an increase of $3.1 billion in Unrealized Investment Income (Loss).

The $3.1 billion increase in Unrealized Investment Income (Loss) was primarily attributable to net unrealized appreciation of investments in the nine months ended September 30, 2024 compared to net unrealized depreciation of investments in the nine months ended September 30, 2023. Principal drivers were:

	•		An increase of $1.4 billion in our Private Equity segment, primarily attributable to higher unrealized appreciation of Blackstone’s investment in certain BIP funds, certain Corporate Private Equity funds and GP Stakes funds in the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023. BIP, Corporate Private Equity and GP Stakes funds appreciated 16.8%, 11.7% and 24.7%, respectively, in the nine months ended September 30, 2024, compared to 11.4%, 8.6% and 1.1%, respectively, in the nine months ended September 30, 2023.

	•		An increase of $819.6 million in our Credit & Insurance segment, primarily attributable to an unrealized gain on the ownership of Corebridge common stock based on the publicly traded price as of September 30, 2024, compared to an unrealized loss based on the publicly traded price as of September 30, 2023.

	•		An increase of $682.3 million in our Real Estate segment, primarily attributable to lower unrealized depreciation of Blackstone’s investment in certain BREP and Core+ real estate funds in the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023.

Expenses

Expenses were $5.3 billion for the nine months ended September 30, 2024, an increase of $1.3 billion, compared to $4.0 billion for the nine months ended September 30, 2023. The increase was primarily attributable to an increase of $1.2 billion in Total Compensation and Benefits, of which $1.0 billion was an increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily due to the increase in Investment Income (Loss), on which a portion of compensation is based.

Other Income (Loss)

Other Income (Loss) was $70.0 million for the nine months ended September 30, 2024, a decrease of $34.4 million, compared to $104.4 million for the nine months ended September 30, 2023. The decrease in Other Income (Loss) was principally due to a decrease of $32.5 million in Net Gains (Losses) from Fund Investment Activities.

The decrease in Net Gains (Losses) from Fund Investment Activities was driven by a decrease of $57.0 million in our Private Equity segment, partially offset by an increase of $27.3 million in our Real Estate segment. The decrease in our Private Equity segment was primarily due to the deconsolidation of a fund and the increase in our Real Estate segment was primarily due to lower unrealized depreciation of investments in our consolidated funds.

Provision for Taxes

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Blackstone’s Provision for Taxes for the three months ended September 30, 2024 was $245.3 million, an increase of $48.7 million, compared to $196.6 million for the three months ended September 30, 2023. This resulted in an effective tax rate of 13.6% and 17.6%, based on our Income Before Provision for Taxes of $1.8 billion and $1.1 billion for the three months ended September 30, 2024 and 2023, respectively.

The decrease in Blackstone’s effective tax rate for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, relates primarily to the deferred tax impact of Blackstone’s investment in its operating partnerships.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Blackstone’s Provision for Taxes for the nine months ended September 30, 2024 was $789.2 million, an increase of $321.7 million, compared to $467.5 million for the nine months ended September 30, 2023. This resulted in an effective tax rate of 16.1% and 16.7%, based on our Income Before Provision for Taxes of $4.9 billion and $2.8 billion for the nine months ended September 30, 2024 and 2023, respectively.

The decrease in Blackstone’s effective tax rate for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, relates primarily to the impact of Non-Controlling Interests in Consolidated Entities and the deferred tax impact of Blackstone’s investment in its operating partnerships.

Blackstone had a corporate alternative minimum tax (“CAMT”) liability for the nine months ended September 30, 2024 as calculated pursuant to the Inflation Reduction Act. Blackstone will continue to assess the overall impact to its Provision for Taxes upon the issuance of applicable additional guidance by the U.S. Treasury Department related to interpretations of CAMT. For the nine months ended September 30, 2024, there is no meaningful CAMT impact reflected in the Provision for Taxes given current year tax payments made under CAMT are permitted to be carried forward and used as credits in future years resulting in a deferred tax benefit.

Additional information regarding our income taxes can be found in Note 13. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.

Non-Controlling Interests in Consolidated Entities

The Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities and Net Income Attributable to Non-Controlling Interests in Consolidated Entities is attributable to the consolidated Blackstone funds. The amounts of these items vary directly with the performance of the consolidated Blackstone funds and largely eliminate the amount of Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities from the Net Income Attributable to Blackstone Inc.

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings is derived from the Income Before Provision for Taxes at the Blackstone Holdings level, excluding the Net Gains (Losses) from Fund Investment Activities and the percentage allocation of the income between Blackstone personnel and others who are limited partners of Blackstone Holdings and Blackstone after considering any contractual arrangements that govern the allocation of income such as fees allocable to Blackstone.

For the three months ended September 30, 2024 and 2023, the Net Income Before Taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 38.4% and 39.1%, respectively. For the nine months ended September 30, 2024 and 2023, the Net Income Before Taxes allocated to Blackstone personnel and others who are limited partners of Blackstone Holdings was 38.6% and 39.3%, respectively. The respective decreases of 0.7% and 0.7% were primarily due to the conversion of Blackstone Holdings Partnership Units to shares of common stock and the vesting of shares of common stock.

Operating Metrics

Total and Fee-Earning Assets Under Management

The following graphs and tables summarize the Fee-Earning Assets Under Management by Segment and Total Assets Under Management by Segment, followed by a rollforward of activity for the three and nine months ended September 30, 2024 and 2023. For a description of how Assets Under Management and Fee-Earning Assets Under Management are determined, please see “—Key Financial Measures and Indicators — Operating Metrics — Total and Fee-Earning Assets Under Management.”

Note:	Totals may not add due to rounding.

		Three Months Ended
		September 30, 2024																				September 30, 2023
						Private				Credit &				Multi-Asset												Private				Credit &				Multi-Asset
		Real Estate				Equity				Insurance				Investing				Total				Real Estate				Equity				Insurance				Investing				Total
		(Dollars in Thousands)
Fee-Earning Assets Under Management
Balance, Beginning of Period		$	299,066,252			$	200,486,740			$	237,285,546			$	71,818,263			$	808,656,801			$	287,556,241			$	173,736,641			$	202,794,690			$	67,057,493			$	731,145,065
Inflows (a)			6,339,267				9,837,020				15,543,666				2,414,940				34,134,893				10,868,551				2,353,367				9,547,713				1,994,463				24,764,094
Outflows (b)			(14,705,015	)			(1,939,598	)			1,179,299				(1,235,655	)			(16,700,969	)			(7,228,016	)			(91,048	)			(2,516,618	)			(1,811,313	)			(11,646,995	)
Net Inflows (Outflows)			(8,365,748	)			7,897,422				16,722,965				1,179,285				17,433,924				3,640,535				2,262,319				7,031,095				183,150				13,117,099
Realizations (c)			(7,766,570	)			(1,481,885	)			(7,185,343	)			(393,637	)			(16,827,435	)			(4,631,227	)			(2,189,450	)			(3,510,415	)			(394,892	)			(10,725,984	)
Market Activity (d)(g)			2,554,138				1,779,379				4,744,263				2,116,133				11,193,913				(1,628,646	)			2,067,862				(1,341,325	)			1,907,532				1,005,423
Balance, End of Period (e)		$	285,488,072			$	208,681,656			$	251,567,431			$	74,720,044			$	820,457,203			$	284,936,903			$	175,877,372			$	204,974,045			$	68,753,283			$	734,541,603
Increase (Decrease)		$	(13,578,180	)		$	8,194,916			$	14,281,885			$	2,901,781			$	11,800,402			$	(2,619,338	)		$	2,140,731			$	2,179,355			$	1,695,790			$	3,396,538
Increase (Decrease)			-5	%			4	%			6	%			4	%			1	%			-1	%			1	%			1	%			3	%			—

		Nine Months Ended
		September 30, 2024																				September 30, 2023
						Private				Credit &				Multi-Asset												Private				Credit &				Multi-Asset
		Real Estate				Equity				Insurance				Investing				Total				Real Estate				Equity				Insurance				Investing				Total
		(Dollars in Thousands)
Fee-Earning Assets Under Management
Balance, Beginning of Period		$	298,889,475			$	176,997,265			$	218,188,936			$	68,532,226			$	762,607,902			$	281,967,153			$	175,990,967			$	192,535,693			$	67,893,075			$	718,386,888
Inflows (a)			22,109,230				39,183,794				48,657,787				6,272,938				116,223,749				33,698,852				5,596,149				30,103,693				5,322,695				74,721,389
Outflows (b)			(21,515,859	)			(6,268,958	)			(3,241,976	)			(5,153,945	)			(36,180,738	)			(14,801,926	)			(357,026	)			(10,101,624	)			(6,517,553	)			(31,778,129	)
Net Inflows (Outflows)			593,371				32,914,836				45,415,811				1,118,993				80,043,011				18,896,926				5,239,123				20,002,069				(1,194,858	)			42,943,260
Realizations (c)			(17,370,846	)			(5,617,538	)			(18,893,384	)			(1,403,073	)			(43,284,841	)			(14,583,553	)			(7,711,110	)			(10,137,479	)			(1,653,465	)			(34,085,607	)
Market Activity (d)(h)			3,376,072				4,387,093				6,856,068				6,471,898				21,091,131				(1,343,623	)			2,358,392				2,573,762				3,708,531				7,297,062
Balance, End of Period (e)		$	285,488,072			$	208,681,656			$	251,567,431			$	74,720,044			$	820,457,203			$	284,936,903			$	175,877,372			$	204,974,045			$	68,753,283			$	734,541,603
Increase (Decrease)		$	(13,401,403	)		$	31,684,391			$	33,378,495			$	6,187,818			$	57,849,301			$	2,969,750			$	(113,595	)		$	12,438,352			$	860,208			$	16,154,715
Increase (Decrease)			-4	%			18	%			15	%			9	%			8	%			1	%			—				6	%			1	%			2	%
Annualized Base Management Fee Rate (f)			0.92	%			1.01	%			0.65	%			0.65	%			0.84	%			0.99	%			1.08	%			0.64	%			0.70	%			0.89	%

		Three Months Ended
		September 30, 2024																				September 30, 2023
						Private				Credit &				Multi-Asset												Private				Credit &				Multi-Asset
		Real Estate				Equity				Insurance				Investing				Total				Real Estate				Equity				Insurance				Investing				Total
		(Dollars in Thousands)
Total Assets Under Management
Balance, Beginning of Period		$	336,100,271			$	330,589,586			$	330,117,204			$	79,564,750			$	1,076,371,811			$	333,241,514			$	305,277,730			$	288,410,617			$	74,426,098			$	1,001,355,959
Inflows (a)			5,834,937				10,201,293				21,389,914				3,114,569				40,540,713				9,080,894				3,575,508				10,388,817				2,298,059				25,343,278
Outflows (b)			(14,625,590	)			(1,795,914	)			6,487,234				(1,385,397	)			(11,319,667	)			(3,666,574	)			(790,417	)			(2,701,996	)			(1,994,183	)			(9,153,170	)
Net Inflows (Outflows)			(8,790,653	)			8,405,379				27,877,148				1,729,172				29,221,046				5,414,320				2,785,091				7,686,821				303,876				16,190,108
Realizations (c)			(7,405,152	)			(5,255,528	)			(9,631,685	)			(444,578	)			(22,736,943	)			(4,210,722	)			(5,189,356	)			(4,957,840	)			(418,063	)			(14,775,981	)
Market Activity (d)(i)			5,171,247				10,970,764				6,378,853				2,251,584				24,772,448				(2,944,415	)			5,696,492				(231,486	)			2,062,781				4,583,372
Balance, End of Period (e)		$	325,075,713			$	344,710,201			$	354,741,520			$	83,100,928			$	1,107,628,362			$	331,500,697			$	308,569,957			$	290,908,112			$	76,374,692			$	1,007,353,458
Increase (Decrease)		$	(11,024,558	)		$	14,120,615			$	24,624,316			$	3,536,178			$	31,256,551			$	(1,740,817	)		$	3,292,227			$	2,497,495			$	1,948,594			$	5,997,499
Increase (Decrease)			-3	%			4	%			7	%			4	%			3	%			-1	%			1	%			1	%			3	%			1	%

		Nine Months Ended
		September 30, 2024																				September 30, 2023
						Private				Credit &				Multi-Asset												Private				Credit &				Multi-Asset
		Real Estate				Equity				Insurance				Investing				Total				Real Estate				Equity				Insurance				Investing				Total
		(Dollars in Thousands)
Total Assets Under Management
Balance, Beginning of Period		$	336,940,096			$	314,391,397			$	312,674,037			$	76,186,917			$	1,040,192,447			$	326,146,904			$	299,850,659			$	273,746,559			$	74,928,955			$	974,673,077
Inflows (a)			19,846,962				29,667,700				57,019,224				7,425,130				113,959,016				34,017,611				16,789,616				38,997,788				6,013,159				95,818,174
Outflows (b)			(21,496,056	)			(4,490,723	)			(2,440,863	)			(5,832,229	)			(34,259,871	)			(11,593,028	)			(1,947,839	)			(12,554,437	)			(6,767,885	)			(32,863,189	)
Net Inflows (Outflows)			(1,649,094	)			25,176,977				54,578,361				1,592,901				79,699,145				22,424,583				14,841,777				26,443,351				(754,726	)			62,954,985
Realizations (c)			(16,706,782	)			(18,364,933	)			(24,620,900	)			(1,549,541	)			(61,242,156	)			(14,177,010	)			(18,991,092	)			(14,996,977	)			(1,740,913	)			(49,905,992	)
Market Activity (d)(j)			6,491,493				23,506,760				12,110,022				6,870,651				48,978,926				(2,893,780	)			12,868,613				5,715,179				3,941,376				19,631,388
Balance, End of Period (e)		$	325,075,713			$	344,710,201			$	354,741,520			$	83,100,928			$	1,107,628,362			$	331,500,697			$	308,569,957			$	290,908,112			$	76,374,692			$	1,007,353,458
Increase (Decrease)		$	(11,864,383	)		$	30,318,804			$	42,067,483			$	6,914,011			$	67,435,915			$	5,353,793			$	8,719,298			$	17,161,553			$	1,445,737			$	32,680,381
Increase (Decrease)			-4	%			10	%			13	%			9	%			6	%			2	%			3	%			6	%			2	%			3	%

(a)	Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments), purchases, inter-segment allocations and acquisitions.

(b)	Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side commitments).

(c)	Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors from CLOs.

(d)	Market Activity includes realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations.

(e)	Total and Fee-Earning Assets Under Management are reported in the segment where the assets are managed.

(f)	Annualized Base Management Fee Rate represents annualized year to date Base Management Fee divided by the average of the beginning of year and each quarter end’s Fee-Earning Assets Under Management in the reporting period.

(g)

For the three months ended September 30, 2024, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $2.4 billion, $176.9 million, $724.9 million, $329.7 million and $3.6 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended September 30, 2023, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(1.6) billion, $(117.9) million, $(630.3) million, $(213.6) million and $(2.6) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.

(h)

For the nine months ended September 30, 2024, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $896.7 million, $40.2 million, $265.4 million, $27.6 million and $1.2 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the nine months ended September 30, 2023, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(617.3) million, $(62.7) million, $99.0 million, $(452.2) million and $(1.0) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.

(i)

For the three months ended September 30, 2024, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $3.8 billion, $1.5 billion, $788.6 million, $333.3 million and $6.5 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended September 30, 2023, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(2.6) billion, $(822.0) million, $(693.3) million, $(214.0) million and $(4.3) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.

(j)

For the nine months ended September 30, 2024, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $1.5 billion, $666.7 million, $354.5 million, $31.7 million and $2.6 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the nine months ended September 30, 2023, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(1.3) billion, $26.8 million, $130.8 million, $(444.7) million and $(1.6) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.

Fee-Earning Assets Under Management

Fee-Earning Assets Under Management were $820.5 billion at September 30, 2024, an increase of $11.8 billion compared to $808.7 billion at June 30, 2024. The net increase was due to:

	•		In our Real Estate segment, a decrease of $13.6 billion from $299.1 billion at June 30, 2024 to $285.5 billion at September 30, 2024. The net decrease was due to outflows of $14.7 billion and realizations of $7.8 billion, offset by inflows of $6.3 billion and market appreciation of $2.6 billion.

	o	Outflows were driven by $12.1 billion due to the Residential Debt Transfer and $1.7 billion from BREIT.

	o	Realizations were driven by $3.6 billion from BREDS and $2.0 billion from BREIT.

	o	Inflows were driven by $2.3 billion from BREIT, $2.0 billion from BREDS and $1.3 billion from BPP and co-investment.

	o	Market appreciation was driven by appreciation of $1.5 billion from BREDS (which reflected $63.5 million of foreign exchange appreciation) and $613.1 million from BREP and co-investment (which reflected $609.3 million of foreign exchange appreciation).

	•		In our Private Equity segment, an increase of $8.2 billion from $200.5 billion at June 30, 2024 to $208.7 billion at September 30, 2024. The net increase was due to inflows of $9.8 billion and market appreciation of $1.8 billion, offset by outflows of $1.9 billion and realizations of $1.5 billion.

	o	Inflows were driven by $3.0 billion from Corporate Private Equity, $3.0 billion from Secondaries and $1.5 billion from BIP.

	o	Market appreciation was driven by appreciation of $1.7 billion from BIP (which reflected $177.0 million of foreign exchange appreciation).

	o	Outflows were driven by $1.2 billion from Corporate Private Equity and $275.8 million from BTAS.

	o	Realizations were driven by $468.9 million from Secondaries, $440.0 million from BIP and $390.1 million from Corporate Private Equity.

	•		In our Credit & Insurance segment, an increase of $14.3 billion from $237.3 billion at June 30, 2024 to $251.6 billion at September 30, 2024. The net increase was due to inflows of $15.5 billion, market appreciation of $4.7 billion and outflows of $(1.2) billion, offset by realizations of $7.2 billion.

	o	Inflows were driven by $7.0 billion from direct lending, $4.2 billion from liquid corporate credit and $4.1 billion from infrastructure and asset based credit strategies.

	o	Market appreciation was driven by appreciation of $2.6 billion from liquid corporate credit (which reflected $536.9 million of foreign exchange appreciation) and $1.1 billion from infrastructure and asset based credit strategies.

	o	Outflows were driven by $4.0 billion as a result of an update to the methodology to exclude, leverage that contributes to performance revenues but does not earn management fees, $3.9 billion from liquid corporate credit, $1.5 billion from mezzanine funds and $809.3 million from the insurance platform, all offset by $(12.1) billion due to the Residential Debt Transfer.

	o	Realizations were driven by $3.6 billion from liquid corporate credit and $2.2 billion from direct lending.

	•		In our Multi-Asset Investing segment, an increase of $2.9 billion from $71.8 billion at June 30, 2024 to $74.7 billion at September 30, 2024. The net increase was due to inflows of $2.4 billion and market appreciation of $2.1 billion, offset by outflows of $1.2 billion and realizations of $393.6 million.

	o	Inflows were driven by $2.1 billion from Absolute Return and $209.1 million from Multi-Strategy.

	o	Market appreciation was driven by appreciation of $1.5 billion from Absolute Return (which reflected $316.1 million of foreign exchange appreciation), $304.4 million from Harvest and $272.8 million from Multi-Strategy (which reflected $13.6 million of foreign exchange appreciation).

	o	Outflows were driven by $1.1 billion from Absolute Return and $145.0 million from Harvest.

	o	Realizations were driven by $199.9 million from Multi-Strategy and $124.8 million from Absolute Return.

Fee-Earning Assets Under Management were $820.5 billion at September 30, 2024, an increase of $57.8 billion compared to $762.6 billion at December 31, 2023. The net increase was due to:

	•		In our Real Estate segment, a decrease of $13.4 billion from $298.9 billion at December 31, 2023 to $285.5 billion at September 30, 2024. The net decrease was due to outflows of $21.5 billion and realizations of $17.4 billion, offset by inflows of $22.1 billion and market appreciation of $3.4 billion.

	o	Outflows were driven by $12.1 billion due to the Residential Debt Transfer and $8.0 billion from BREIT.

	o	Realizations were driven by $8.0 billion from BREDS and $4.9 billion from BREIT.

	o	Inflows were driven by $8.0 billion from BREDS, $6.1 billion from BREIT and $4.4 billion from BREP and co-investment.

	o	Market appreciation was driven by appreciation of $2.2 billion from BREDS (which reflected $51.9 million of foreign exchange appreciation) and $1.3 billion from BREIT (which reflected $55.6 million of foreign exchange appreciation), partially offset by depreciation of $349.7 million from BPP and co-investment (which reflected $532.7 million of foreign exchange appreciation).

	•		In our Private Equity segment, an increase of $31.7 billion from $177.0 billion at December 31, 2023 to $208.7 billion at September 30, 2024. The net increase was due to inflows of $39.2 billion and market appreciation of $4.4 billion, offset by outflows of $6.3 billion and realizations of $5.6 billion.

	o	Inflows were driven by $26.6 billion from Corporate Private Equity, $3.8 billion from BIP and $3.5 billion from Secondaries.

	o	Market appreciation was driven by appreciation of $4.5 billion from BIP (which reflected $35.9 million of foreign exchange appreciation), partially offset by depreciation of $268.8 million from Secondaries.

	o	Outflows were driven by $4.6 billion from Corporate Private Equity.

	o	Realizations were driven by $1.9 billion from Secondaries, $1.8 billion from Corporate Private Equity and $1.2 billion from Tactical Opportunities.

	•		In our Credit & Insurance segment, an increase of $33.4 billion from $218.2 billion at December 31, 2023 to $251.6 billion at September 30, 2024. The net increase was due to inflows of $48.7 billion and market appreciation of $6.9 billion, offset by realizations of $18.9 billion and outflows of $3.2 billion.

	o	Inflows were driven by $19.6 billion from direct lending, $14.8 billion from liquid corporate credit and $11.9 billion from infrastructure and asset based credit strategies.

	o	Market appreciation was driven by appreciation of $3.2 billion from direct lending (which reflected $37.3 million of foreign exchange appreciation) and $2.5 billion from liquid corporate credit (which reflected $221.1 million of foreign exchange appreciation).

	o	Realizations were driven by $8.9 billion from liquid corporate credit and $5.8 billion from direct lending.

	o	Outflows were driven by $4.0 billion as a result of an update to the methodology to exclude, leverage that contributes to performance revenues but does not earn management fees, $6.3 billion from liquid corporate credit, $1.6 billion from the insurance platform and $1.5 billion from mezzanine funds, all offset by $(12.1) billion due to the Residential Debt Transfer.

	•		In our Multi-Asset Investing segment, an increase of $6.2 billion from $68.5 billion at December 31, 2023 to $74.7 billion at September 30, 2024. The net increase was due to market appreciation of $6.5 billion and inflows of $6.3 billion, offset by outflows of $5.2 billion and realizations of $1.4 billion.

	o	Market appreciation was driven by appreciation of $4.3 billion from Absolute Return, $1.5 billion from Harvest and $699.9 million from Multi-Strategy (which reflected $18.8 million of foreign exchange appreciation).

	o	Inflows were driven by $5.0 billion from Absolute Return, $967.8 million from Multi-Strategy and $316.5 million from Harvest.

	o	Outflows were driven by $4.4 billion from Absolute Return, $422.1 million from Harvest and $348.0 million from Multi-Strategy.

	o	Realizations were driven by $801.0 million from Multi-Strategy, $402.6 million from Absolute Return and $199.5 million from Harvest.

Total Assets Under Management

Total Assets Under Management were $1,107.6 billion at September 30, 2024, an increase of $31.3 billion compared to $1,076.4 billion at June 30, 2024. The net increase was due to:

	•		In our Real Estate segment, a decrease of $11.0 billion from $336.1 billion at June 30, 2024 to $325.1 billion at September 30, 2024. The net decrease was due to outflows of $14.6 billion and realizations of $7.4 billion, offset by inflows of $5.8 billion and market appreciation of $5.2 billion.

	o	Outflows were driven by $12.5 billion due to the Residential Debt Transfer and $1.7 billion from BREIT.

	o	Realizations were driven by $2.4 billion from BREDS, $2.0 billion from BREIT and $1.8 billion from BREP and co-investment.

	o	Inflows were driven by $2.3 billion from BREIT, $1.6 billion from BREDS and $1.3 billion from BPP and co-investment.

	o	Market appreciation was driven by appreciation of $2.7 billion from BREDS (which reflected $82.5 million of foreign exchange appreciation) and $2.0 billion from BREP and co-investment (which reflected $2.0 billion of foreign exchange appreciation).

	•		In our Private Equity segment, an increase of $14.1 billion from $330.6 billion at June 30, 2024 to $344.7 billion at September 30, 2024. The net increase was due to market appreciation of $11.0 billion and inflows of $10.2 billion, offset by realizations of $5.3 billion and outflows of $1.8 billion.

	o	Market appreciation was driven by appreciation of $5.8 billion from Corporate Private Equity (which reflected $1.1 billion of foreign exchange appreciation) and $2.2 billion from BIP (which reflected $260.3 million of foreign exchange appreciation).

	o	Inflows were driven by $3.4 billion from Corporate Private Equity, $2.8 billion from BIP and $1.5 billion from Secondaries.

	o	Realizations were driven by $2.1 billion from Corporate Private Equity, $1.6 billion from Secondaries and $971.0 million from BIP.

	o	Outflows were driven by $664.1 million from Secondaries and $613.4 million from Tactical Opportunities.

	•		In our Credit & Insurance segment, an increase of $24.6 billion from $330.1 billion at June 30, 2024 to $354.7 billion at September 30, 2024. The net increase was due to inflows of $21.4 billion, outflows of $(6.5) billion and market appreciation of $6.4 billion, offset by realizations of $9.6 billion.

	o	Inflows were driven by $8.9 billion from direct lending, $5.5 billion from liquid corporate credit and $4.6 billion from infrastructure and asset based credit strategies.

	o	Outflows were driven by $4.0 billion from liquid corporate credit, $1.3 billion from direct lending and $809.3 million from the insurance platform, all offset by $(12.5) billion due to the Residential Debt Transfer.

	o	Market appreciation was driven by appreciation of $2.6 billion from liquid corporate credit (which reflected $551.8 million of foreign exchange appreciation), $1.6 billion from direct lending (which reflected $234.0 million of foreign exchange appreciation) and $1.5 billion from infrastructure and asset based credit strategies.

	o	Realizations were driven by $4.0 billion from direct lending and $3.6 billion from liquid corporate credit.

	•		In our Multi-Asset Investing segment, an increase of $3.5 billion from $79.6 billion at June 30, 2024 to $83.1 billion at September 30, 2024. The net increase was due to inflows of $3.1 billion and market appreciation of $2.3 billion, offset by outflows of $1.4 billion and realizations of $444.6 million.

	o	Inflows were driven by $2.0 billion from Absolute Return, $964.3 million from Multi-Strategy and $142.9 million from Harvest.

	o	Market appreciation was driven by appreciation of $1.6 billion from Absolute Return (which reflected $316.3 million of foreign exchange appreciation), $334.8 million from Harvest and $290.4 million from Multi-Strategy (which reflected $16.9 million of foreign exchange appreciation).

	o	Outflows were driven by $1.2 billion from Absolute Return and $145.1 million from Harvest.

	o	Realizations were driven by $218.5 million from Multi-Strategy, $131.6 million from Absolute Return and $94.5 million from Harvest.

Total Assets Under Management were $1,107.6 billion at September 30, 2024, an increase of $67.4 billion compared to $1,040.2 billion at December 31, 2023. The net increase was due to:

	•		In our Real Estate segment, a decrease of $11.9 billion from $336.9 billion at December 31, 2023 to $325.1 billion at September 30, 2024. The net decrease was due to outflows of $21.5 billion and realizations of $16.7 billion, offset by inflows of $19.8 billion and market appreciation of $6.5 billion.

	o	Outflows were driven by $12.5 billion due to the Residential Debt Transfer and $8.0 billion from BREIT.

	o	Realizations were driven by $6.0 billion from BREDS, $4.9 billion from BREIT and $2.9 billion from BPP and co-investment.

	o	Inflows were driven by $7.7 billion from BREDS, $6.1 billion from BREIT and $3.5 billion from BREP and co-investment.

	o	Market appreciation was primarily driven by appreciation of $3.9 billion from BREDS (which reflected $79.1 million of foreign exchange appreciation) and $1.7 billion from BREP and co-investment (which reflected $779.2 million of foreign exchange appreciation).

	•		In our Private Equity segment, an increase of $30.3 billion from $314.4 billion at December 31, 2023 to $344.7 billion at September 30, 2024. The net increase was due to inflows of $29.7 billion and market appreciation of $23.5 billion, offset by realizations of $18.4 billion and outflows of $4.5 billion.

	o	Inflows were driven by $11.6 billion from Corporate Private Equity, $7.4 billion from BIP and $4.9 billion from Secondaries.

	o	Market appreciation was driven by appreciation of $10.5 billion from Corporate Private Equity (which reflected $479.4 million of foreign exchange appreciation), $5.7 billion from BIP (which reflected $122.9 million of foreign exchange appreciation) and $4.6 billion from Secondaries (which reflected $13.6 million of foreign exchange appreciation).

	o	Realizations were driven by $8.8 billion from Corporate Private Equity and $5.4 billion from Secondaries.

	o	Outflows were driven by $1.8 billion from Secondaries and $1.5 billion from Tactical Opportunities.

	•		In our Credit & Insurance segment, an increase of $42.1 billion from $312.7 billion at December 31, 2023 to $354.7 billion at September 30, 2024. The net increase was due to inflows of $57.0 billion and market appreciation of $12.1 billion, offset by realizations of $24.6 billion and outflows of $2.4 billion.

	o	Inflows were driven by $24.4 billion from direct lending, $15.1 billion from liquid corporate credit and $12.4 billion from infrastructure and asset based credit strategies.

	o	Market appreciation was driven by appreciation of $4.5 billion from direct lending (which reflected $78.9 million of foreign exchange appreciation), $2.7 billion from the liquid corporate credit (which reflected $276.1 million of foreign exchange appreciation) and $1.7 billion from infrastructure and asset based credit strategies.

	o	Realizations were driven by $9.7 billion from direct lending and $8.9 billion from liquid corporate credit.

	o	Outflows were driven by $6.5 billion from liquid corporate credit, $6.0 billion from direct lending and $1.6 billion from the insurance platform, all offset by $(12.5) billion due to the Residential Debt Transfer.

	•		In our Multi-Asset Investing segment, an increase of $6.9 billion from $76.2 billion at December 31, 2023 to $83.1 billion at September 30, 2024. The net increase was due to inflows of $7.4 billion and market appreciation of $6.9 billion, offset by outflows of $5.8 billion and realizations of $1.5 billion.

	o	Inflows were driven by $5.1 billion from Absolute Return, $2.0 billion from Multi-Strategy and $384.2 million from Harvest.

	o	Market appreciation was driven by appreciation of $4.5 billion from Absolute Return, $1.6 billion from Harvest and $714.9 million from Multi-Strategy (which reflected $22.7 million of foreign exchange appreciation).

	o	Outflows were driven by $4.6 billion from Absolute Return, $736.2 million from Multi-Strategy and $450.4 million from Harvest.

	o	Realizations were driven by $872.0 million from Multi-Strategy, $413.9 million from Absolute Return and $263.6 million from Harvest.

Fee-Earning Assets Under Management inflows in Corporate Private Equity exceed Total Assets Under Management inflows primarily due to the commencement of the investment period of BCP IX and BETP IV in the nine months ended September 30, 2024. Fee-Earning Assets Under Management inflows are reported when a fund’s investment period commences, whereas Total Assets Under Management activity is reported at each fund closing.

Total Assets Under Management realizations in our Private Equity segment generally represents the total proceeds and typically exceeds the Fee-Earning Assets Under Management realizations. Fee-Earning Assets Under Management generally represents only the invested capital.

Fee-Earning Assets Under Management in Corporate Private Equity is reported based on committed or remaining invested capital, whereas Total Assets Under Management is reported based on fair value and remaining available capital. Total Assets Under Management market activity therefore exceeds Fee-Earning Assets Under Management market activity.

Total Assets Under Management inflows in our Credit & Insurance segment direct lending funds exceed the Fee-Earning Assets Under Management inflows because Total Assets Under Management inflows are reported at their gross value while, for certain funds, Fee-Earning Assets Under Management inflows are reported as net assets, which is the basis on which fees are charged.

Dry Powder

The following presents our Dry Powder as of quarter end of each period:

Note:	Totals may not add due to rounding.

(a)	Represents illiquid drawdown funds, a component of Perpetual Capital and fee-paying co-investments; includes fee-paying third party capital as well as general partner and employee capital that does not earn fees. Amounts are reduced by outstanding capital commitments, for which capital has not yet been invested.

Net Accrued Performance Revenues

The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of September 30, 2024 and 2023. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 17. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues.

		September 30,
		2024				2023
		(Dollars in Millions)
Real Estate
BREP Global		$	1,313			$	1,625
BREP Europe			130				132
BREP Asia			97				93
BPP			32				387
BREDS			18				30
BTAS			18				18
Total Real Estate (a)			1,608				2,285
Private Equity
BCP Global			1,708				1,542
BCP Asia			260				113
Energy/Energy Transition			533				387
Core Private Equity			244				220
Tactical Opportunities			181				235
Secondaries			951				737
Infrastructure			568				324
Life Sciences			145				62
BTAS/BXPE/Other			240				186
Total Private Equity (a)			4,829				3,804
Credit & Insurance			450				292
Multi-Asset Investing			105				53
Total Blackstone Net Accrued Performance Revenues		$	6,992			$	6,435

Note:	Totals may not add due to rounding.

(a)	Real Estate and Private Equity include co-investments, as applicable.

For the twelve months ended September 30, 2024, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $2.4 billion, partially offset by net realized distributions of $1.8 billion.

Invested Performance Eligible Assets Under Management

The following presents our Invested Performance Eligible Assets Under Management as of quarter end for each period:

Note:	Totals may not add due to rounding.

Perpetual Capital

The following presents our Perpetual Capital Total Assets Under Management as of quarter end for each period:

Note:	Totals may not add due to rounding.

(a)	Perpetual Capital Total Assets Under Management for Multi-Asset Investing segment was zero, $200.4 million and $206.3 million as of December 31, 2023, June 30, 2024 and September 30, 2024, respectively.

Perpetual Capital Total Assets Under Management were $434.7 billion as of September 30, 2024, an increase of $16.2 billion, compared to $418.6 billion as of June 30, 2024. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $18.2 billion and $7.9 billion, respectively, partially offset by a decrease in our Real Estate segment of $10.0 billion. Principal drivers of the increases and decrease were:

	•		In our Credit & Insurance segment, growth of $16.1 billion in insurance capital managed in the segment, which was primarily related to the perpetual capital portion of the Residential Debt Transfer.

	•		In our Private Equity segment, growth in BIP and BXPE capital managed in the segment resulted in an increase of $3.9 billion and $2.2 billion, respectively.

	•		In our Real Estate segment, the decrease of $10.0 billion was primarily due to the perpetual capital portion of the Residential Debt Transfer.

Perpetual Capital Total Assets Under Management were $434.7 billion as of September 30, 2024, an increase of $38.4 billion, compared to $396.3 billion as of December 31, 2023. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $31.6 billion and $18.2 billion, respectively, partially offset by a decrease in our Real Estate segment of $11.6 billion. Principal drivers of the increases and decrease were:

	•		In our Credit & Insurance segment, growth of $22.1 billion in insurance capital managed in the segment, which was primarily related to the perpetual capital portion of the Residential Debt Transfer.

	•		In our Private Equity segment, growth in BIP and BXPE capital managed in the segment resulted in increases of $11.6 billion and $3.8 billion, respectively.

	•		In our Real Estate segment, the decrease of $11.6 billion was primarily due to decreases of $5.4 billion in BREIT and $4.4 billion in BREDS, primarily reflecting the perpetual capital portion of the Residential Debt Transfer.

Investment Records

Fund returns information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.

The following tables present the investment record of our significant carry/drawdown funds and selected perpetual capital strategies from inception through September 30, 2024:

Carry/Drawdown Funds

						Unrealized Investments										Realized Investments						Total Investments
Fund (Investment Period		Committed		Available								%																Net IRRs (d)
Beginning Date / Ending Date) (a)		Capital		Capital (b)		Value		MOIC (c)				Public				Value		MOIC (c)				Value		MOIC (c)				Realized				Total
		(Dollars/Euros in Thousands, Except Where Noted)
Real Estate
Pre-BREP		$ 140,714		$ —		$ —			n/a				—			$ 345,190			2.5x			$ 345,190			2.5x				33%				33%
BREP I (Sep 1994 / Oct 1996)		380,708		—		—			n/a				—			1,327,708			2.8x			1,327,708			2.8x				40%				40%
BREP II (Oct 1996 / Mar 1999)		1,198,339		—		—			n/a				—			2,531,614			2.1x			2,531,614			2.1x				19%				19%
BREP III (Apr 1999 / Apr 2003)		1,522,708		—		—			n/a				—			3,330,406			2.4x			3,330,406			2.4x				21%				21%
BREP IV (Apr 2003 / Dec 2005)		2,198,694		—		—			n/a				—			4,684,232			1.7x			4,684,232			1.7x				12%				12%
BREP V (Dec 2005 / Feb 2007)		5,539,418		—		6,226			n/a				—			13,463,448			2.3x			13,469,674			2.3x				11%				11%
BREP VI (Feb 2007 / Aug 2011)		11,060,122		—		7,531			n/a				—			27,758,817			2.5x			27,766,348			2.5x				13%				13%
BREP VII (Aug 2011 / Apr 2015)		13,505,657		1,017,051		1,883,905			0.6x				—			28,472,664			2.2x			30,356,569			1.9x				20%				14%
BREP VIII (Apr 2015 / Jun 2019)		16,607,961		2,006,806		11,937,632			1.5x				1%			22,801,799			2.3x			34,739,431			2.0x				23%				14%
BREP IX (Jun 2019 / Aug 2022)		21,349,913		3,314,887		24,434,954			1.4x				1%			9,029,887			2.2x			33,464,841			1.5x				55%				13%
*BREP X (Aug 2022 / Feb 2028)		30,640,856		22,293,304		9,524,677			1.2x				6%			302,375			1.1x			9,827,052			1.2x				n/a				10%
Total Global BREP		$ 104,145,090		$ 28,632,048		$ 47,794,925			1.3x				2%			$ 114,048,140			2.3x			$ 161,843,065			1.9x				17%				15%
BREP Int’l (Jan 2001 / Sep 2005)		€ 824,172		€ —		€ —			n/a				—			€ 1,373,170			2.1x			€ 1,373,170			2.1x				23%				23%
BREP Int’l II (Sep 2005 / Jun 2008) (e)		1,629,748		—		—			n/a				—			2,583,032			1.8x			2,583,032			1.8x				8%				8%
BREP Europe III (Jun 2008 / Sep 2013)		3,205,420		391,802		152,188			0.3x				—			5,856,192			2.4x			6,008,380			2.0x				18%				13%
BREP Europe IV (Sep 2013 / Dec 2016)		6,676,577		1,079,282		1,075,017			0.8x				—			10,146,604			1.9x			11,221,621			1.7x				18%				12%
BREP Europe V (Dec 2016 / Oct 2019)		7,992,703		884,823		4,407,440			0.8x				—			6,762,819			3.8x			11,170,259			1.5x				41%				7%
BREP Europe VI (Oct 2019 / Sep 2023)		9,933,550		2,975,177		8,442,676			1.2x				—			3,442,555			2.6x			11,885,231			1.4x				72%				12%
*BREP Europe VII (Sep 2023 / Mar 2029)		7,704,643		6,190,274		1,768,948			1.2x				—			—			n/a			1,768,948			1.2x				n/a				n/m
Total BREP Europe		€ 37,966,813		€ 11,521,358		€ 15,846,269			1.0x				—			€ 30,164,372			2.3x			€ 46,010,641			1.6x				17%				11%

continued...

										Unrealized Investments												Realized Investments								Total Investments
Fund (Investment Period		Committed				Available												%																				Net IRRs (d)
Beginning Date / Ending Date) (a)		Capital				Capital (b)				Value				MOIC (c)				Public				Value				MOIC (c)				Value				MOIC (c)				Realized				Total
		(Dollars/Euros in Thousands, Except Where Noted)
Real Estate (continued)
BREP Asia I (Jun 2013 / Dec 2017)		$	4,262,075			$	898,533			$	1,560,757				1.7x				14	%		$	7,229,127				2.0x			$	8,789,884				1.9x				16%				12%
BREP Asia II (Dec 2017 / Mar 2022)			7,354,811				1,310,778				6,411,213				1.2x				5	%			2,112,419				1.8x				8,523,632				1.3x				24%				5%
*BREP Asia III (Mar 2022 / Sep 2027)			8,210,352				6,801,968				1,403,568				1.0x				—				—				n/a				1,403,568				1.0x				n/a				-13%
Total BREP Asia			19,827,238				9,011,279				9,375,538				1.2x				6	%			9,341,546				1.9x				18,717,084				1.5x				17%				8%
BREP Co-Investment (f)			7,587,426				117,353				1,103,907				1.7x				—				15,264,782				2.2x				16,368,689				2.2x				16%				16%
Total BREP		$	176,001,124			$	50,446,797			$	76,080,082				1.2x				2	%		$	175,528,787				2.3x			$	251,608,869				1.8x				17%				14%
*BREDS High-Yield (Various) (g)		$	25,164,762			$	8,052,575			$	5,428,734				1.0x				—			$	21,395,281				1.3x			$	26,824,015				1.3x				10%				9%
Private Equity
Corporate Private Equity
BCP I (Oct 1987 / Oct 1993)		$	859,081			$	—			$	—				n/a				—			$	1,741,738				2.6x			$	1,741,738				2.6x				19%				19%
BCP II (Oct 1993 / Aug 1997)			1,361,100				—				—				n/a				—				3,268,627				2.5x				3,268,627				2.5x				32%				32%
BCP III (Aug 1997 / Nov 2002)			3,967,422				—				—				n/a				—				9,228,707				2.3x				9,228,707				2.3x				14%				14%
BCOM (Jun 2000 / Jun 2006)			2,137,330				24,575				184				n/a				—				2,995,106				1.4x				2,995,290				1.4x				6%				6%
BCP IV (Nov 2002 / Dec 2005)			6,773,182				195,824				357				n/a				—				21,720,334				2.9x				21,720,691				2.9x				36%				36%
BCP V (Dec 2005 / Jan 2011)			21,009,112				1,035,259				66,016				n/a				100	%			38,806,330				1.9x				38,872,346				1.9x				8%				8%
BCP VI (Jan 2011 / May 2016)			15,195,243				1,341,026				4,120,776				2.0x				16	%			28,788,181				2.2x				32,908,957				2.2x				14%				12%
BCP VII (May 2016 / Feb 2020)			18,867,443				1,704,240				17,880,529				1.7x				21	%			18,540,348				2.6x				36,420,877				2.0x				25%				13%
BCP VIII (Feb 2020 / Apr 2024)			25,912,375				8,372,340				25,407,341				1.4x				4	%			2,518,107				2.3x				27,925,448				1.5x				n/m				11%
*BCP IX (Apr 2024 / Apr 2029)			20,777,398				20,690,042				46,367				n/a				—				—				n/a				46,367				n/a				n/a				n/a
Energy I (Aug 2011 / Feb 2015)			2,441,558				174,492				487,445				1.5x				54	%			4,191,619				2.0x				4,679,064				2.0x				14%				11%
Energy II (Feb 2015 / Feb 2020)			4,920,933				867,570				4,136,017				1.9x				68	%			4,377,051				1.8x				8,513,068				1.9x				12%				8%
Energy III (Feb 2020 / Jun 2024)			4,355,021				1,583,228				5,370,434				2.1x				10	%			1,631,879				2.4x				7,002,313				2.2x				47%				30%
*Energy Transition IV (Jun 2024 / Jun 2029)			4,303,332				4,270,434				—				n/a				—				—				n/a				—				n/a				n/a				n/a
BCP Asia I (Dec 2017 / Sep 2021)			2,437,080				417,510				2,947,127				2.1x				60	%			2,623,597				3.5x				5,570,724				2.6x				51%				26%
*BCP Asia II (Sep 2021 / Sep 2027)			6,788,466				4,361,442				3,431,480				1.9x				8	%			91,510				2.2x				3,522,990				1.9x				n/m				35%
Core Private Equity I (Jan 2017 / Mar 2021) (h)			4,760,279				1,171,237				7,485,845				2.0x				—				2,871,414				5.2x				10,357,259				2.4x				58%				17%
*Core Private Equity II (Mar 2021 / Mar 2026) (h)			8,450,958				5,123,153				4,683,299				1.3x				—				346,751				n/a				5,030,050				1.4x				n/a				15%
Total Corporate Private Equity		$	155,317,313			$	51,332,372			$	76,063,217				1.6x				15	%		$	143,741,299				2.3x			$	219,804,516				2.0x				16%				15%

continued...

										Unrealized Investments												Realized Investments								Total Investments
Fund (Investment Period		Committed				Available												%																				Net IRRs (d)
Beginning Date / Ending Date) (a)		Capital				Capital (b)				Value				MOIC (c)				Public				Value				MOIC (c)				Value				MOIC (c)				Realized				Total
		(Dollars/Euros in Thousands, Except Where Noted)
Private Equity (continued)
Tactical Opportunities
*Tactical Opportunities (Various)		$	30,813,178			$	12,260,704			$	15,581,042				1.2x				5	%		$	24,261,935				1.8x			$	39,842,977				1.5x				16%				10%
*Tactical Opportunities Co-Investment and Other (Various)			12,541,264				2,391,711				5,259,063				1.2x				2	%			10,576,414				1.8x				15,835,477				1.6x				21%				16%
Total Tactical Opportunities		$	43,354,442			$	14,652,415			$	20,840,105				1.2x				4	%		$	34,838,349				1.8x			$	55,678,454				1.5x				17%				12%
Growth
*BXG I (Jul 2020 / Jul 2025)		$	5,006,755			$	1,204,350			$	3,520,462				1.0x				2	%		$	517,135				2.6x			$	4,037,597				1.1x				n/m				-2%
BXG II (TBD)			4,190,970				4,190,970				—				n/a				—				—				n/a				—				n/a				n/a				n/a
Total Growth		$	9,197,725			$	5,395,320			$	3,520,462				1.0x				2	%		$	517,135				2.6x			$	4,037,597				1.1x				n/m				-2%
Strategic Partners (Secondaries)
Strategic Partners I-V (Various) (i)		$	11,035,527			$	23,013			$	7,796				n/a				—			$	16,782,783				n/a			$	16,790,579				1.7x				n/a				13%
Strategic Partners VI (Apr 2014 / Apr 2016) (i)			4,362,772				604,672				662,063				n/a				—				4,399,074				n/a				5,061,137				1.7x				n/a				13%
Strategic Partners VII (May 2016 / Mar 2019) (i)			7,489,970				1,672,312				3,060,725				n/a				—				7,577,917				n/a				10,638,642				1.9x				n/a				16%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)			1,749,807				502,307				1,279,240				n/a				—				1,173,420				n/a				2,452,660				1.7x				n/a				16%
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)			10,763,600				3,974,342				7,787,015				n/a				—				6,876,095				n/a				14,663,110				1.8x				n/a				24%
*Strategic Partners Real Estate, SMA and Other (Various) (i)			7,455,591				2,382,516				2,516,169				n/a				—				2,525,494				n/a				5,041,663				1.5x				n/a				13%
Strategic Partners Infrastructure III (Jun 2020 / Jun 2024) (i)			3,250,100				534,128				2,626,027				n/a				—				274,616				n/a				2,900,643				1.4x				n/a				22%
*Strategic Partners IX (Oct 2021 / Jan 2027) (i)			19,692,626				7,648,783				8,568,139				n/a				—				782,344				n/a				9,350,483				1.4x				n/a				18%
*Strategic Partners GP Solutions (Jun 2021 / Dec 2026) (i)			2,095,211				739,359				900,770				n/a				—				3,947				n/a				904,717				1.0x				n/a				-3%
Total Strategic Partners (Secondaries)		$	67,895,204			$	18,081,432			$	27,407,944				n/a				—			$	40,395,690				n/a			$	67,803,634				1.6x				n/a				14%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020)		$	910,000			$	61,316			$	716,439				2.1x				—			$	559,642				1.4x			$	1,276,081				1.7x				6%				10%
*BXLS V (Jan 2020 / Jan 2025)			5,004,386				2,657,312				3,536,842				1.9x				2	%			469,474				1.2x				4,006,316				1.8x				n/m				16%

continued...

										Unrealized Investments												Realized Investments								Total Investments
Fund (Investment Period		Committed				Available												%																				Net IRRs (d)
Beginning Date / Ending Date) (a)		Capital				Capital (b)				Value				MOIC (c)				Public				Value				MOIC (c)				Value				MOIC (c)				Realized				Total
		(Dollars/Euros in Thousands, Except Where Noted)
Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)		$	2,000,000			$	97,114			$	—				n/a				—			$	4,809,113				1.6x			$	4,809,113				1.6x				n/a				17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)			4,120,000				993,260				92,124				0.2x				—				6,678,087				1.5x				6,770,211				1.4x				n/a				10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)			6,639,133				1,091,782				2,165,828				1.2x				39%				8,454,627				1.6x				10,620,455				1.5x				n/a				12%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)			5,016,771				1,389,288				4,679,493				1.1x				—				1,239,671				1.8x				5,919,164				1.2x				n/a				14%
Stressed / Distressed I (Sep 2009 / May 2013)			3,253,143				—				—				n/a				—				5,777,098				1.3x				5,777,098				1.3x				n/a				9%
Stressed / Distressed II (Jun 2013 / Jun 2018)			5,125,000				547,430				142,782				0.2x				—				5,470,492				1.2x				5,613,274				1.1x				n/a				1%
Stressed / Distressed III (Dec 2017 / Dec 2022)			7,356,380				1,100,454				2,552,558				1.1x				—				4,209,841				1.5x				6,762,399				1.3x				n/a				10%
Energy I (Nov 2015 / Nov 2018)			2,856,867				1,154,819				279,453				0.8x				—				3,293,013				1.6x				3,572,466				1.5x				n/a				10%
Energy II (Feb 2019 / Jun 2023)			3,616,081				1,474,627				1,028,263				1.1x				—				2,738,563				1.4x				3,766,826				1.3x				n/a				16%
*Green Energy III (May 2023 / May 2028)			6,477,000				4,649,454				1,958,000				1.0x				—				161,207				n/a				2,119,207				1.1x				n/a				n/m
European Senior Debt I (Feb 2015 / Feb 2019)		€	1,964,689			€	139,954			€	204,893				0.4x				—			€	2,978,763				1.3x			€	3,183,656				1.2x				n/a				2%
European Senior Debt II (Jun 2019 / Jun 2023) (j)		€	4,088,344			€	719,250			€	3,958,457				0.9x				—			€	2,871,992				2.4x			€	6,830,449				1.3x				n/a				10%
Total Credit Drawdown Funds (k)		$	53,366,033			$	13,457,145			$	17,545,006				1.0x				5%			$	49,509,019				1.5x			$	67,054,025				1.3x				n/a				10%

Selected Perpetual Capital Strategies (l)

Strategy (Inception Year) (a)		Investment Strategy				Total Assets Under Management				Total Net Return (m)
		(Dollars in Thousands, Except Where Noted)
Real Estate
BPP—Blackstone Property Partners Platform (2013) (n)			Core+ Real Estate			$	64,308,476				5%
BREIT—Blackstone Real Estate Income Trust (2017) (o)			Core+ Real Estate				55,295,802				9%
BREIT—Class I (p)			Core+ Real Estate								10%
BXMT—Blackstone Mortgage Trust (2013) (q)			Real Estate Debt				5,933,731				6%
Private Equity
BSCH—Blackstone Strategic Capital Holdings (2014) (r)			Secondaries—GP Stakes				10,739,337				13%
BIP—Blackstone Infrastructure Partners (2019) (s)			Infrastructure				40,470,269				16%
BXPE—Blackstone Private Equity Strategies Fund Program (2024) (t)			Private Equity				5,747,358				(t)
Credit
BXSL—Blackstone Secured Lending Fund (2018) (u)			U.S. Direct Lending				12,661,739				11%
BCRED—Blackstone Private Credit Fund (2021) (v)			U.S. Direct Lending				71,173,137				10%
BCRED—Class I (w)			U.S. Direct Lending								10%

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

n/m	Not meaningful generally due to the limited time since initial investment.

n/a	Not applicable.

SMA	Separately managed account.

*	Represents funds that are in their investment period as of September 30, 2024.

(a)	Excludes investment vehicles where Blackstone does not earn fees.

(b)	Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and expired or recallable capital and may include leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.

(c)	Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Performance Revenues, divided by invested capital.

(d)

Unless otherwise indicated, Net Internal Rate of Return (“IRR”) represents the annualized inception to September 30, 2024 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of limited partner cash flows. Initial inception date of cash flows may differ from the Investment Period Beginning Date.

(e)	The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II performance reflects a 7% Realized Net IRR and a 7% Total Net IRR.

(f)	BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues.

(g)	BREDS High-Yield represents the flagship real estate debt drawdown funds only.

(h)	Blackstone Core Equity Partners is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity.

(i)

Strategic Partners’ Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total MOIC and Total Net IRRs are reported on a three-month lag and therefore do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns of capital until fully recovered and therefore Unrealized and Realized MOICs and Realized Net IRRs are not applicable. Committed Capital and Available Capital are presented as of the current quarter.

(j)	European Senior Debt II Levered has a net return of 15%, European Senior Debt II Unlevered has a net return of 8%.

(k)	Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented.

(l)	Represents the performance for select perpetual capital strategies; strategies excluded consist primarily of (i) investment strategies that have been investing for less than one year, (ii) perpetual capital assets managed for certain insurance clients, and (iii) investment vehicles where Blackstone does not earn fees.

(m)	Unless otherwise indicated, Total Net Return represents the annualized inception to September 30, 2024 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of investor cash flows. Initial inception date of cash flows occurred during the Inception Year.

(n)	BPP represents the aggregate Total Assets Under Management and Total Net Return of the BPP Platform, which comprises over 30 funds, co-investment and separately managed account vehicles. It includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of September 30, 2024, these vehicles represented $2.5 billion of Total Assets Under Management.

(o)

The BREIT Total Net Return reflects a per share blended return, assuming BREIT had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. This return is not representative of the return experienced by any particular investor or share class. Total Net Return is presented on an annualized basis and is from January 1, 2017.

(p)	Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. Class I Total Net Return is presented on an annualized basis and is from January 1, 2017.

(q)	The BXMT Total Net Return reflects annualized market return of a shareholder invested in BXMT since inception, May 22, 2013, assuming reinvestment of all dividends received during the period.

(r)

BSCH represents the aggregate Total Assets Under Management and Total Net Return of BSCH I and BSCH II funds that invest as part of the Secondaries – GP Stakes strategy, which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally. Including co-investment vehicles that do not pay fees, BSCH Total Assets Under Management is $12.0 billion.

(s)	BIP represents the aggregate Total Assets Under Management and Total Net Return of the infrastructure-focused funds with a primary focus on the U.S. Including co-investment vehicles and BIP Europe, BIP Total Assets Under Management is $52.6 billion.

(t)	BXPE’s Total Assets Under Management reflects net asset value as of August 31, 2024 plus net subscriptions as of September 1, 2024. For purposes of segment Assets Under Management reporting, BXPE’s Assets Under Management is reported by the business managing the assets. Total net return not presented because the reporting date is less than one year from BXPE’s inception date (January 2, 2024).

(u)

The BXSL Total Assets Under Management and Total Net Return are presented as of June 30, 2024. Refer to BXSL public filings for current quarter results. BXSL Total Net Return reflects the change in Net Asset Value (“NAV”) per share, plus distributions per share (assuming dividends and distributions are reinvested in accordance with BXSL’s dividend reinvestment plan) divided by the beginning NAV per share. Total Net Returns are presented on an annualized basis and are from November 20, 2018.

(v)

The BCRED Total Net Return reflects a per share blended return, assuming BCRED had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. This return is not representative of the return experienced by any particular investor or share class. Total Net Return is presented on an annualized basis and is from January 7, 2021. Total Assets Under Management reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED net asset value as of September 30, 2024 was $36.4 billion.

(w)	Represents the Total Net Return for BCRED’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. Class I Total Net Return is presented on an annualized basis and is from January 7, 2021.

Segment Analysis

Discussed below is our Segment Distributable Earnings for each of our segments. This information is reflected in the manner utilized by our senior management to make operating decisions, assess performance and allocate resources. References to “our” sectors or investments may also refer to portfolio companies and investments of the underlying funds that we manage.

Real Estate

The following table presents the results of operations for our Real Estate segment:

		Three Months Ended																Nine Months Ended
		September 30,								2024 vs. 2023								September 30,								2024 vs. 2023
		2024				2023				$				%				2024				2023				$				%
		(Dollars in Thousands)
Management Fees, Net
Base Management Fees		$	672,260			$	697,561			$	(25,301	)			-4%			$	2,052,223			$	2,112,925			$	(60,702	)			-3	%
Transaction and Other Fees, Net			24,810				10,686				14,124				132%				129,140				58,313				70,827				121	%
Management Fee Offsets			(1,524	)			(7,616	)			6,092				-80%				(7,921	)			(26,380	)			18,459				-70	%
Total Management Fees, Net			695,546				700,631				(5,085	)			-1%				2,173,442				2,144,858				28,584				1	%
Fee Related Performance Revenues			72,428				127,841				(55,413	)			-43%				202,992				279,888				(76,896	)			-27	%
Fee Related Compensation			(166,567	)			(199,384	)			32,817				-16%				(525,540	)			(536,000	)			10,460				-2	%
Other Operating Expenses			(100,739	)			(83,074	)			(17,665	)			21%				(282,879	)			(229,204	)			(53,675	)			23	%
Fee Related Earnings			500,668				546,014				(45,346	)			-8%				1,568,015				1,659,542				(91,527	)			-6	%
Realized Performance Revenues			78,022				17,419				60,603				348%				181,461				148,236				33,225				22	%
Realized Performance Compensation			(44,761	)			(7,813	)			(36,948	)			473%				(91,919	)			(80,571	)			(11,348	)			14	%
Realized Principal Investment Income			6,421				1,565				4,856				310%				15,667				3,719				11,948				321	%
Net Realizations			39,682				11,171				28,511				255%				105,209				71,384				33,825				47	%
Segment Distributable Earnings		$	540,350			$	557,185			$	(16,835	)			-3%			$	1,673,224			$	1,730,926			$	(57,702	)			-3	%

n/m Not meaningful.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Segment Distributable Earnings were $540.4 million for the three months ended September 30, 2024, a decrease of $16.8 million, compared to $557.2 million for the three months ended September 30, 2023. The decrease in Segment Distributable Earnings was attributable to a decrease of $45.3 million in Fee Related Earnings, partially offset by an increase of $28.5 million in Net Realizations.

Our global opportunistic and Core+ real estate portfolios are concentrated in high-conviction sectors with favorable long-term fundamentals. These sectors, including digital infrastructure, logistics and rental housing, have continued to support performance in our Real Estate segment. In particular, our data center platform was the single largest driver of appreciation in our Real Estate business and the firm in the third quarter of 2024. More broadly, we believe our Real Estate segment is well positioned to benefit from the expected increase in demand for digital infrastructure over time.

We believe a meaningful decline in the cost of capital has positioned commercial real estate for increasing values over time and improving investor sentiment toward the sector. Moreover, real estate values should further be supported by the material decrease in new construction in certain sectors, including logistics and rental housing, which will contribute to further constraints on future supply. Growth in certain markets and sectors with elevated near-term supply, including U.S. logistics and multifamily, has slowed, however, and may moderate further. Challenges from new supply and muted demand have also pressured life science office and have negatively impacted valuations of such assets. Weak fundamentals have also persisted in the traditional office market and more troubled assets are likely to emerge. While our NYSE-listed REIT, Blackstone Mortgage Trust (“BXMT”), is mostly focused in sectors with strong long-term fundamentals, its office exposure is higher than in our real estate equity business. Although this has posed challenges for the vehicle, its focus on senior loans has been an important factor in mitigating the adverse impact of the sector’s dislocation.

In addition, liquidity in the private market has also improved meaningfully, providing the foundation for greater transaction activity in the future. Ahead of an anticipated market recovery, our Real Estate funds invested or committed $22.4 billion in the first nine months of 2024, approximately two-and-a-half times the same period in 2023. These positive signs have coincided with improving investor sentiment in the third quarter, reflected in an over 90% decline in BREIT repurchase requests in September 2024 relative to their peak in January 2023. We believe that flows in our perpetual capital strategies could benefit from continued improvement of the market environment.

Fee Related Earnings

Fee Related Earnings were $500.7 million for the three months ended September 30, 2024, a decrease of $45.3 million, compared to $546.0 million for the three months ended September 30, 2023. The decrease in Fee Related Earnings was primarily attributable to a decrease of $55.4 million in Fee Related Performance Revenues and an increase of $17.7 million in Other Operating Expenses, partially offset by a decrease of $32.8 million in Fee Related Compensation.

Fee Related Performance Revenues were $72.4 million for the three months ended September 30, 2024, a decrease of $55.4 million, compared to $127.8 million for the three months ended September 30, 2023. The decrease was primarily due to lower Fee Related Performance Revenues in BPP and co-investment.

Other Operating Expenses were $100.7 million for the three months ended September 30, 2024, an increase of $17.7 million, compared to $83.1 million for the three months ended September 30, 2023. The increase was primarily due to higher sub-servicing fees and professional fees.

Fee Related Compensation was $166.6 million for the three months ended September 30, 2024, a decrease of $32.8 million, compared to $199.4 million for the three months ended September 30, 2023. The decrease was primarily due to decreases in Fee Related Performance Revenues and Management Fees, Net, both of which impact Fee Related Compensation.

Net Realizations

Net Realizations were $39.7 million for the three months ended September 30, 2024, an increase of $28.5 million, compared to $11.2 million for the three months ended September 30, 2023. The increase in Net Realizations was primarily attributable to an increase of $60.6 million in Realized Performance Revenues, partially offset by an increase of $36.9 million in Realized Performance Compensation.

Realized Performance Revenues were $78.0 million for the three months ended September 30, 2024, an increase of $60.6 million, compared to $17.4 million for the three months ended September 30, 2023. The increase was primarily due to higher Realized Performance Revenues in BREP.

Realized Performance Compensation was $44.8 million for the three months ended September 30, 2024, an increase of $36.9 million, compared to $7.8 million for the three months ended September 30, 2023. The increase was primarily due to the increase in Realized Performance Revenues.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Segment Distributable Earnings were $1.7 billion for the nine months ended September 30, 2024, a decrease of $57.7 million, compared to $1.7 billion for the nine months ended September 30, 2023. The decrease in Segment Distributable Earnings was attributable to a decrease of $91.5 million in Fee Related Earnings, partially offset by an increase of $33.8 million in Net Realizations.

Fee Related Earnings

Fee Related Earnings were $1.6 billion for the nine months ended September 30, 2024, a decrease of $91.5 million, compared to $1.7 billion for the nine months ended September 30, 2023. The decrease in Fee Related Earnings was attributable to a decrease of $76.9 million in Fee Related Performance Revenues and an increase of $53.7 million in Other Operating Expenses, partially offset by an increase of $28.6 million in Management Fees, Net.

Fee Related Performance Revenues were $203.0 million for the nine months ended September 30, 2024, a decrease of $76.9 million, compared to $279.9 million for the nine months ended September 30, 2023. The decrease was primarily due to lower Fee Related Performance Revenues in BPP and co-investment and BXMT.

Other Operating Expenses were $282.9 million for the nine months ended September 30, 2024, an increase of $53.7 million, compared to $229.2 million for the nine months ended September 30, 2023. The increase was primarily due to higher sub-servicing fees, professional fees and occupancy costs.

Management Fees, Net were $2.2 billion for the nine months ended September 30, 2024, an increase of $28.6 million, compared to $2.1 billion for the nine months ended September 30, 2023, primarily driven by an increase in Transaction and Other Fees, Net, partially offset by a decrease in Base Management Fees. Transaction and Other Fees, Net increased $70.8 million primarily due to an increase in acquisition fees paid to the advisor of our BREP funds. Base Management Fees decreased $60.7 million primarily due to a decrease in Fee-Earning Assets Under Management in BREIT and BPP and co-investment.

Net Realizations

Net Realizations were $105.2 million for the nine months ended September 30, 2024, an increase of $33.8 million, compared to $71.4 million for the nine months ended September 30, 2023. The increase in Net Realizations was primarily attributable to an increase of $33.2 million in Realized Performance Revenues.

Realized Performance Revenues were $181.5 million for the nine months ended September 30, 2024, an increase of $33.2 million, compared to $148.2 million for the nine months ended September 30, 2023. The increase was primarily due to higher Realized Performance Revenues in BREDS.

Fund Returns

Fund return information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.

The following table presents the internal rates of return, except where noted, of our significant real estate funds:

		Three Months Ended																Nine Months Ended																September 30, 2024
		September 30,																September 30,																Inception to Date
		2024								2023								2024								2023								Realized								Total
Fund (a)		Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net
BREP VII			-7%				-6%				-11%				-10%				-15%				-13%				-24%				-21%				27%				20%				20%				14%
BREP VIII			1%				0%				-3%				-3%				2%				1%				-5%				-5%				30%				23%				19%				14%
BREP IX			0%				0%				-2%				-2%				-1%				-1%				-1%				-2%				81%				55%				19%				13%
BREP X			8%				6%				n/m				n/m				25%				15%				n/m				n/m				n/a				n/a				40%				10%
BREP Europe IV (b)			1%				1%				-7%				-6%				-4%				-4%				-12%				-11%				26%				18%				18%				12%
BREP Europe V (b)			-5%				-4%				-4%				-3%				-8%				-7%				-7%				-6%				50%				41%				12%				7%
BREP Europe VI (b)			1%				0%				3%				2%				2%				1%				11%				7%				97%				72%				20%				12%
BREP Asia I			5%				4%				2%				2%				8%				6%				1%				0%				23%				16%				18%				12%
BREP Asia II			1%				1%				-2%				-3%				1%				0%				-4%				-2%				36%				24%				8%				5%
BREP Asia III			6%				3%				-9%				-13%				9%				-1%				-8%				-20%				n/a				n/a				2%				-13%
BREP Co-Investment (c)			1%				0%				1%				1%				3%				0%				4%				3%				18%				16%				18%				16%
BPP (d)			-1%				-1%				-2%				-2%				-1%				-2%				-3%				-4%				n/a				n/a				7%				5%
BREIT (e)			n/a				0%				n/a				2%				n/a				2%				n/a				3%				n/a				n/a				n/a				9%
BREIT - Class I (f)			n/a				0%				n/a				2%				n/a				2%				n/a				3%				n/a				n/a				n/a				10%
BREDS High-Yield (g)			4%				3%				4%				2%				12%				9%				8%				5%				14%				10%				14%				9%
BXMT (h)			n/a				12%				n/a				7%				n/a				-2%				n/a				13%				n/a				n/a				n/a				6%

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

n/m	Not meaningful generally due to the limited time since initial investment.

n/a	Not applicable.

(a)	Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. Excludes investment vehicles where Blackstone does not earn fees.

(b)	Euro-based internal rates of return.

(c)	BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues.

(d)	The BPP platform, which comprises over 30 funds, co-investment and separately managed account vehicles, represents the Core+ real estate funds which invest with a more modest risk profile and lower leverage.

(e)

Reflects a per share blended return for each respective period, assuming BREIT had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are not representative of the returns experienced by any particular investor or share class. Inception to date returns are presented on an annualized basis and are from January 1, 2017.

(f)	Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. Inception to date return is from January 1, 2017.

(g)	BREDS High-Yield represents the flagship real estate debt drawdown funds only. Inception to date returns are from July 1, 2009.

(h)	Reflects annualized return of a shareholder invested in BXMT as of the beginning of each period presented, assuming reinvestment of all dividends received during the period, and net of all fees and expenses incurred by BXMT. Return incorporates the closing NYSE stock price as of each period end. Inception to date returns are from May 22, 2013.

Funds With Closed Investment Periods as of September 30, 2024

The Real Estate segment has fourteen funds with closed investment periods as of September 30, 2024: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP IV, BREP Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of September 30, 2024, BREP VII, BREP VI, BREP V, BREP IV, BREP Europe IV, BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all remaining investments were valued at zero. BREP IX, BREP VIII, BREP Europe VI, BREP Europe V, BREDS IV and BREDS III were above their carried interest thresholds as of September 30, 2024, and BREP Asia II was below its carried interest threshold. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.

Private Equity

The following table presents the results of operations for our Private Equity segment:

		Three Months Ended																Nine Months Ended
		September 30,								2024 vs. 2023								September 30,								2024 vs. 2023
		2024				2023				$				%				2024				2023				$				%
		(Dollars in Thousands)
Management and Advisory Fees, Net
Base Management Fees		$	511,355			$	481,224			$	30,131				6%			$	1,454,183			$	1,423,470			$	30,713				2%
Transaction, Advisory and Other Fees, Net			45,592				22,604				22,988				102%				118,721				87,923				30,798				35%
Management Fee Offsets			(4,127	)			(2,000	)			(2,127	)			106%				(4,026	)			(4,104	)			78				-2%
Total Management and Advisory Fees, Net			552,820				501,828				50,992				10%				1,568,878				1,507,289				61,589				4%
Fee Related Performance Revenues			5,868				-				5,868				n/m				14,571				-				14,571				n/m
Fee Related Compensation			(169,059	)			(152,491	)			(16,568	)			11%				(489,686	)			(482,596	)			(7,090	)			1%
Other Operating Expenses			(96,660	)			(81,738	)			(14,922	)			18%				(274,131	)			(238,912	)			(35,219	)			15%
Fee Related Earnings			292,969				267,599				25,370				9%				819,632				785,781				33,851				4%
Realized Performance Revenues			216,643				299,271				(82,628	)			-28%				1,048,314				1,021,164				27,150				3%
Realized Performance Compensation			(94,800	)			(114,211	)			19,411				-17%				(495,042	)			(437,970	)			(57,072	)			13%
Realized Principal Investment Income			9,028				22,682				(13,654	)			-60%				37,182				68,558				(31,376	)			-46%
Net Realizations			130,871				207,742				(76,871	)			-37%				590,454				651,752				(61,298	)			-9%
Segment Distributable Earnings		$	423,840			$	475,341			$	(51,501	)			-11%			$	1,410,086			$	1,437,533			$	(27,447	)			-2%

n/m Not meaningful.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Segment Distributable Earnings were $423.8 million for the three months ended September 30, 2024, a decrease of $51.5 million, compared to $475.3 million for the three months ended September 30, 2023. The decrease in Segment Distributable Earnings was primarily attributable to a decrease of $76.9 million in Net Realizations, partially offset by an increase of $25.4 million in Fee Related Earnings.

Our Private Equity segment’s performance in the third quarter of 2024 was driven by particular strength in our Corporate Private Equity, Infrastructure and Life Sciences strategies. Specifically, our data center platform was the single largest driver of appreciation in our Infrastructure business and the firm in the third quarter of 2024. We believe our Infrastructure business is well positioned to benefit from the expected increase in demand for digital infrastructure over time. In Corporate Private Equity, our operating companies saw stable revenue growth and margin strength overall in the quarter. Declining interest rates and improved investor sentiment have created positive momentum in deployment and fundraising, including in our perpetual capital strategies. The debt and equity capital markets have also improved, providing the foundation for greater transaction activity in the future.

Fee Related Earnings

Fee Related Earnings were $293.0 million for the three months ended September 30, 2024, an increase of $25.4 million, compared to $267.6 million for the three months ended September 30, 2023. The increase in Fee Related Earnings was primarily attributable to an increase of $51.0 million in Management and Advisory Fees, Net, partially offset by increases of $16.6 million in Fee Related Compensation and $14.9 million in Other Operating Expenses.

Management and Advisory Fees, Net were $552.8 million for the three months ended September 30, 2024, an increase of $51.0 million, compared to $501.8 million for the three months ended September 30, 2023, primarily driven by increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $30.1 million primarily due to an increase in Fee-Earning Assets Under Management in BIP and BXPE, as well as the commencement of BCP IX and BETP IV’s investment period. Transaction, Advisory and Other Fees, Net increased $23.0 million primarily due to increased volume of deal activity in BXCM.

Fee Related Compensation was $169.1 million for the three months ended September 30, 2024, an increase of $16.6 million, compared to $152.5 million for the three months ended September 30, 2023. The increase was primarily due to an increase in Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.

Other Operating Expenses were $96.7 million for the three months ended September 30, 2024, an increase of $14.9 million, compared to $81.7 million for the three months ended September 30, 2023. The increase was primarily due to higher professional fees, including placement fees, and occupancy costs.

Net Realizations

Net Realizations were $130.9 million for the three months ended September 30, 2024, a decrease of $76.9 million, compared to $207.7 million for the three months ended September 30, 2023. The decrease in Net Realizations was primarily attributable to a decrease of $82.6 million in Realized Performance Revenues, partially offset by a decrease of $19.4 million in Realized Performance Compensation.

Realized Performance Revenues were $216.6 million for the three months ended September 30, 2024, a decrease of $82.6 million, compared to $299.3 million for the three months ended September 30, 2023. The decrease was primarily due to decreases in Realized Performance Revenues in Secondaries and Corporate Private Equity.

Realized Performance Compensation was $94.8 million for the three months ended September 30, 2024, a decrease of $19.4 million, compared to $114.2 million for the three months ended September 30, 2023. The decrease was primarily due to decreases in Realized Performance Compensation in Secondaries and Corporate Private Equity.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Segment Distributable Earnings were $1.4 billion for the nine months ended September 30, 2024, a decrease of $27.4 million, compared to $1.4 billion for the nine months ended September 30, 2023. The decrease in Segment Distributable Earnings was primarily attributable to a decrease of $61.3 million in Net Realizations, partially offset by an increase of $33.9 million in Fee Related Earnings.

Fee Related Earnings

Fee Related Earnings were $819.6 million for the nine months ended September 30, 2024, an increase of $33.9 million, compared to $785.8 million for the nine months ended September 30, 2023. The increase in Fee Related Earnings was primarily attributable to increases of $61.6 million in Management and Advisory Fees, Net and $14.6 million in Fee Related Performance Revenues, partially offset by an increase of $35.2 million in Other Operating Expenses.

Management and Advisory Fees, Net were $1.6 billion for the nine months ended September 30, 2024, an increase of $61.6 million compared to $1.5 billion for the nine months ended September 30, 2023, primarily driven by increases in Transaction, Advisory and Other Fees, Net and Base Management Fees. Transaction, Advisory and Other Fees, Net increased $30.8 million primarily due to increased volume of deal activity in BXCM. Base Management Fees increased $30.7 million primarily due to an increase in Fee-Earning Assets Under Management in BIP and BXPE.

Fee Related Performance Revenues was $14.6 million for the nine months ended September 30, 2024, an increase of $14.6 million compared to the nine months ended September 30, 2023. The increase was primarily due to crystallization of performance revenues in BIP and BXPE.

Other Operating Expenses were $274.1 million for the nine months ended September 30, 2024, an increase of $35.2 million, compared to $238.9 million for the nine months ended September 30, 2023. The increase was primarily due to higher professional fees, including placement fees, and occupancy costs.

Net Realizations

Net Realizations were $590.5 million for the nine months ended September 30, 2024, a decrease of $61.3 million, compared to $651.8 million for the nine months ended September 30, 2023. The decrease in Net Realizations was attributable to an increase of $57.1 million in Realized Performance Compensation and a decrease of $31.4 million in Realized Principal Investment Income, partially offset by an increase of $27.2 million in Realized Performance Revenues.

Realized Performance Compensation was $495.0 million for the nine months ended September 30, 2024, an increase of $57.1 million, compared to $438.0 million for the nine months ended September 30, 2023. The increase was primarily due to increases in Realized Performance Compensation in Corporate Private Equity and Tactical Opportunities.

Realized Principal Investment Income was $37.2 million for the nine months ended September 30, 2024, a decrease of $31.4 million, compared to $68.6 million for the nine months ended September 30, 2023. The decrease was primarily due to decreases in Realized Principal Investment Income in Corporate Private Equity and GP Stakes.

Realized Performance Revenues were $1.0 billion for the nine months ended September 30, 2024, an increase of $27.2 million, compared to $1.0 billion for the nine months ended September 30, 2023. The increase was primarily due to increases in Realized Performance Revenues in Tactical Opportunities.

Fund Returns

Fund returns information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.

The following table presents the internal rates of return of our significant private equity funds:

		Three Months Ended																Nine Months Ended																September 30, 2024
		September 30,																September 30,																Inception to Date
		2024								2023								2024								2023								Realized								Total
Fund (a)		Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net
BCP VI			2%				2%				2%				1%				2%				2%				6%				5%				19%				14%				17%				12%
BCP VII			3%				3%				-1%				-1%				9%				7%				9%				7%				34%				25%				18%				13%
BCP VIII			8%				6%				3%				2%				13%				8%				8%				5%				n/m				n/m				20%				11%
BEP I			-1%				-1%				0%				0%				5%				5%				-10%				-8%				18%				14%				15%				11%
BEP II			6%				2%				6%				3%				21%				8%				13%				7%				15%				12%				13%				8%
BEP III			9%				7%				4%				3%				17%				13%				28%				21%				66%				47%				45%				30%
BCP Asia I			9%				8%				7%				5%				16%				13%				4%				2%				71%				51%				38%				26%
BCP Asia II			20%				17%				n/m				n/m				44%				35%				n/m				n/m				n/m				n/m				65%				35%
BCEP I (b)			2%				2%				1%				1%				6%				5%				0%				0%				64%				58%				19%				17%
BCEP II (b)			3%				2%				12%				10%				12%				9%				20%				15%				n/a				n/a				20%				15%
Tactical Opportunities			5%				3%				0%				-1%				9%				5%				5%				2%				19%				16%				15%				10%
Tactical Opportunities Co-Investment and Other			5%				4%				0%				1%				10%				9%				4%				4%				22%				21%				19%				16%
BXG I			0%				-1%				-2%				-3%				1%				-2%				-4%				-6%				n/m				n/m				2%				-2%
Strategic Partners VI (c)			0%				0%				0%				0%				0%				0%				-1%				-1%				n/a				n/a				18%				13%
Strategic Partners VII (c)			-2%				-2%				1%				1%				-3%				-3%				2%				2%				n/a				n/a				21%				16%
Strategic Partners Real Assets II (c)			1%				0%				1%				0%				10%				8%				19%				16%				n/a				n/a				19%				16%
Strategic Partners VIII (c)			0%				-1%				0%				-1%				1%				-1%				1%				0%				n/a				n/a				31%				24%
Strategic Partners Real Estate, SMA and Other (c)			2%				1%				-1%				-2%				-1%				-5%				-4%				-5%				n/a				n/a				14%				13%
Strategic Partners Infrastructure III (c)			4%				3%				1%				1%				9%				7%				6%				3%				n/a				n/a				32%				22%
Strategic Partners IX (c)			2%				1%				1%				0%				18%				13%				16%				9%				n/a				n/a				29%				18%
Strategic Partners GP Solutions (c)			-2%				-2%				-3%				-2%				-2%				-4%				-9%				-9%				n/a				n/a				0%				-3%
BIP			6%				5%				11%				9%				18%				15%				12%				9%				n/a				n/a				21%				16%
Clarus IV			3%				3%				-2%				-2%				17%				14%				0%				-1%				11%				6%				16%				10%
BXLS V			7%				5%				21%				14%				24%				17%				29%				18%				n/m				n/m				28%				16%

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

n/m	Not meaningful generally due to the limited time since initial investment.

n/a	Not applicable.

SMA	Separately managed account.

(a)	Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. Excludes investment vehicles where Blackstone does not earn fees.

(b)	BCEP is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity.

(c)	Gross and net returns are reported on a three-month lag, reflect Strategic Partners’ fund financial performance as of the prior quarter and therefore do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns of capital until fully recovered and therefore inception to date realized returns are not applicable.

Funds With Closed Investment Periods as of September 30, 2024

The Corporate Private Equity funds have eleven funds with closed investment periods: BCP IV, BCP V, BCP VI, BCP VII, BCP VIII, BCOM, BEP I, BEP II, BEP III, BCEP I and BCP Asia I. As of September 30, 2024, BCP IV was above its carried interest threshold (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would still be above its carried interest threshold even if all remaining investments were valued at zero. BCP V is comprised of two fund classes, the BCP V “main fund” and BCP V-AC fund. Within these fund classes, the general partner is subject to equalization such that (a) the general partner accrues carried interest when the respective carried interest for either fund class is positive and (b) the general partner realizes carried interest so long as clawback obligations, if any, for either of the respective fund classes are fully satisfied. BCP V, BCP VI, BCP VII, BCOM, BEP I, BEP II, BCEP I and BCP Asia I were above their respective carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.

Tactical Opportunities funds have various funds with closed investment periods, including but not limited to: BTOF-POOL, BTOF-POOL II, and BTOF-POOL III, which are each above their carried interest thresholds based on aggregate fund position. Blackstone Growth funds have no funds with closed investment periods. Secondaries funds have various funds with closed investment periods, including but not limited to: Strategic Partners Infrastructure III, Strategic Partners VIII, Strategic Partners Real Estate VII and BSCH I which are above their respective carried interest thresholds based on aggregate fund position. Certain Strategic Partners funds with closed investment periods do not generate carried interest for Blackstone as agreed to at the time the Strategic Partners business was acquired. Blackstone Life Sciences funds have one fund with a closed investment period: Clarus IV, which was above its carried interest threshold.

Credit & Insurance

The following table presents the results of operations for our Credit & Insurance segment:

		Three Months Ended																Nine Months Ended
		September 30,								2024 vs. 2023								September 30,								2024 vs. 2023
		2024				2023				$				%				2024				2023				$				%
		(Dollars in Thousands)
Management Fees, Net
Base Management Fees		$	407,947			$	324,148			$	83,799				26%			$	1,149,811			$	967,467			$	182,344				19%
Transaction and Other Fees, Net			11,164				10,357				807				8%				31,200				33,800				(2,600	)			-8%
Management Fee Offsets			(1,062	)			(898	)			(164	)			18%				(2,947	)			(3,055	)			108				-4%
Total Management Fees, Net			418,049				333,607				84,442				25%				1,178,064				998,212				179,852				18%
Fee Related Performance Revenues			185,805				146,710				39,095				27%				519,106				409,645				109,461				27%
Fee Related Compensation			(181,586	)			(145,011	)			(36,575	)			25%				(532,658	)			(471,245	)			(61,413	)			13%
Other Operating Expenses			(97,756	)			(75,227	)			(22,529	)			30%				(270,680	)			(229,235	)			(41,445	)			18%
Fee Related Earnings			324,512				260,079				64,433				25%				893,832				707,377				186,455				26%
Realized Performance Revenues			42,926				14,349				28,577				199%				149,293				181,874				(32,581	)			-18%
Realized Performance Compensation			(16,489	)			(5,453	)			(11,036	)			202%				(59,548	)			(79,516	)			19,968				-25%
Realized Principal Investment Income			24,239				29,181				(4,942	)			-17%				31,311				15,753				15,558				99%
Net Realizations			50,676				38,077				12,599				33%				121,056				118,111				2,945				2%
Segment Distributable Earnings		$	375,188			$	298,156			$	77,032				26%			$	1,014,888			$	825,488			$	189,400				23%

n/m  Not meaningful.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Segment Distributable Earnings were $375.2 million for the three months ended September 30, 2024, an increase of $77.0 million, compared to $298.2 million for the three months ended September 30, 2023. The increase in Segment Distributable Earnings was attributable to increases of $64.4 million in Fee Related Earnings and $12.6 million in Net Realizations.

Our Credit & Insurance segment continued to demonstrate strong performance in the third quarter of 2024. Longer-term structural shifts in the lending market have contributed to attractive and sizeable deployment opportunities in the segment, which invested $18.4 billion in the third quarter of 2024. As our Credit & Insurance funds have also benefited from an environment of high interest rates, a further decline in interest rates and/or widening of credit spreads would make it more difficult for our credit funds to replicate this recent strong performance. However, even with modest decreases in base rates, we continue to see significant opportunities to generate excess returns relative to liquid markets in our non-investment grade strategies. Moreover, lower base rates and rapidly expanding private credit markets should be supportive of overall transaction activity, including deployment.

Fundraising in our Credit & Insurance segment, including in our perpetual capital strategies, continued to be positively impacted by the long-term structural shifts in the lending market. In addition to strong interest in non-investment grade strategies, such as opportunistic and direct lending, and a meaningful increase in demand for investment grade private credit, we see robust momentum in our perpetual capital strategies. BCRED had $3.0 billion of subscriptions in the third quarter of 2024 and $9.4 billion in the year to date period, surpassing the total amount of subscriptions in 2023. We believe the long-term growth trajectory is positive and that strong investment performance and investor under-allocation to such private wealth strategies should continue to drive flows over the long-term.

Fee Related Earnings

Fee Related Earnings were $324.5 million for the three months ended September 30, 2024, an increase of $64.4 million, compared to $260.1 million for the three months ended September 30, 2023. The increase in Fee Related Earnings was primarily attributable to increases of $84.4 million in Management Fees, Net and $39.1 million in Fee Related Performance Revenues, partially offset by an increase of $36.6 million in Fee Related Compensation.

Management Fees, Net were $418.0 million for the three months ended September 30, 2024, an increase of $84.4 million, compared to $333.6 million for the three months ended September 30, 2023, primarily driven by an increase in Base Management Fees. Base Management Fees increased $83.8 million primarily due to an increase in Fee-Earning Assets Under Management in direct lending.

Fee Related Performance Revenues were $185.8 million for the three months ended September 30, 2024, an increase of $39.1 million, compared to $146.7 million for the three months ended September 30, 2023. The increase was primarily due to higher net investment income and Fee-Earning Assets Under Management in BCRED.

Fee Related Compensation was $181.6 million for the three months ended September 30, 2024, an increase of $36.6 million, compared to $145.0 million for the three months ended September 30, 2023. The increase was primarily due to increases in Management Fees, Net and Fee Related Performance Revenues, both of which impact Fee Related Compensation.

Net Realizations

Net Realizations were $50.7 million for the three months ended September 30, 2024, an increase of $12.6 million, compared to $38.1 million for the three months ended September 30, 2023. The increase in Net Realizations was primarily attributable to an increase of $28.6 million in Realized Performance Revenues, partially offset by an increase of $11.0 million in Realized Performance Compensation.

Realized Performance Revenues were $42.9 million for the three months ended September 30, 2024, an increase of $28.6 million, compared to $14.3 million for the three months ended September 30, 2023. The increase was primarily due to higher Realized Performance Revenues in our infrastructure and asset based credit strategies.

Realized Performance Compensation was $16.5 million for the three months ended September 30, 2024, an increase of $11.0 million, compared to $5.5 million for the three months ended September 30, 2023. The increase was primarily due to the increase in Realized Performance Revenues.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Segment Distributable Earnings were $1.0 billion for the nine months ended September 30, 2024, an increase of $189.4 million, compared to $825.5 million for the nine months ended September 30, 2023. The increase in Segment Distributable Earnings was attributable to increases of $186.5 million in Fee Related Earnings and $2.9 million in Net Realizations.

Fee Related Earnings

Fee Related Earnings were $893.8 million for the nine months ended September 30, 2024, an increase of $186.5 million, compared to $707.4 million for the nine months ended September 30, 2023. The increase in Fee Related Earnings was attributable to increases of $179.9 million in Management Fees, Net and $109.5 million in Fee Related Performance Revenues, partially offset by increases of $61.4 million in Fee Related Compensation and $41.4 million in Other Operating Expenses.

Management Fees, Net were $1.2 billion for the nine months ended September 30, 2024, an increase of $179.9 million, compared to $998.2 million for the nine months ended September 30, 2023, primarily driven by an increase in Base Management Fees. Base Management Fees increased $182.3 million primarily due to an increase in Fee-Earning Assets Under Management in direct lending.

Fee Related Performance Revenues were $519.1 million for the nine months ended September 30, 2024, an increase of $109.5 million, compared to $409.6 million for the nine months ended September 30, 2023. The increase was primarily due to higher net investment income and Fee-Earning Assets Under Management in BCRED.

Fee Related Compensation was $532.7 million for the nine months ended September 30, 2024, an increase of $61.4 million, compared to $471.2 million for the nine months ended September 30, 2023. The increase was primarily due to increases in Management Fees, Net and Fee Related Performance Revenues, both of which impact Fee Related Compensation.

Other Operating Expenses were $270.7 million for the nine months ended September 30, 2024, an increase of $41.4 million, compared to $229.2 million for the nine months ended September 30, 2023. The increase was primarily due to higher professional fees and technology-related expenses.

Net Realizations

Net Realizations were $121.1 million for the nine months ended September 30, 2024, an increase of $2.9 million, compared to $118.1 million for the nine months ended September 30, 2023. The increase in Net Realizations was attributable to a decrease of $20.0 million in Realized Performance Compensation and an increase of $15.6 million in Realized Principal Investment Income, partially offset by a decrease of $32.6 million in Realized Performance Revenues.

Realized Performance Compensation was $59.5 million for the nine months ended September 30, 2024, a decrease of $20.0 million, compared to $79.5 million for the nine months ended September 30, 2023. The decrease was primarily due to the decrease in Realized Performance Revenues.

Realized Principal Investment Income was $31.3 million for the nine months ended September 30, 2024, an increase of $15.6 million, compared to $15.8 million for the nine months ended September 30, 2023. The increase was primarily due to the impact of a realized loss related to the insurance platform in the nine months ended September 30, 2023.

Realized Performance Revenues were $149.3 million for the nine months ended September 30, 2024, a decrease of $32.6 million, compared to $181.9 million for the nine months ended September 30, 2023. The decrease was primarily due to lower Realized Performance Revenues in mezzanine funds.

Composite Returns

Composite returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The composite returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future results of any particular fund or composite. An investment in Blackstone is not an investment in any of our funds or composites. There can be no assurance that any of our funds or composites or our other existing and future funds or composites will achieve similar returns.

The following table presents the return information for the Private Credit and Liquid Credit composites:

		Three Months Ended																Nine Months Ended
		September 30,																September 30,																September 30, 2024
		2024								2023								2024								2023								Inception to Date
Composite (a)		Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net
Private Credit (b)			4%				3%				5%				3%				12%				9%				12%				9%				12%				8%
Liquid Credit (b)			2%				2%				3%				3%				7%				7%				9%				9%				5%				5%

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

(a)	Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Allocations, net of tax advances.

(b)

Private Credit returns include mezzanine lending funds and middle market direct lending funds (including BXSL and BCRED), stressed/distressed strategies (including stressed/distressed funds and credit alpha strategies) and energy strategies. Liquid Credit returns include CLOs, closed-ended funds, open-ended funds and separately managed accounts. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter-end are included. Funds in liquidation, funds investing primarily in investment grade corporate credit and asset based finance funds are excluded. Blackstone Funds that were contributed to BXC as part of Blackstone’s acquisition of BXC in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by BXC subsequent to March 2008, are also excluded. Private Credit and Liquid Credit’s inception to date returns are from December 31, 2005.

Operating Metrics

The following table presents information regarding our Invested Performance Eligible Assets Under Management:

		Invested Performance Eligible Assets Under Management								Estimated % Above High Water Mark/ Hurdle (a)
		As of September 30,								As of September 30,
		2024				2023				2024		2023
		(Dollars in Thousands)
Credit & Insurance (b)		$	105,416,219			$	86,453,042			99%		96%

(a)

Estimated % Above High Water Mark/Hurdle represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Credit & Insurance managed fund has positive investment performance relative to a hurdle, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a hurdle return, thereby resulting in an increase in Estimated % Above High Water Mark/Hurdle.

(b)

For the Credit & Insurance managed funds, at September 30, 2024, the incremental appreciation needed for the 1% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles to reach their respective High Water Marks/Hurdles was $2.1 billion, an increase of $131.7 million, compared to $2.0 billion at September 30, 2023. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles as of September 30, 2024, 0% were within 5% of reaching their respective High Water Mark.

Multi-Asset Investing

The following table presents the results of operations for our Multi-Asset Investing segment:

		Three Months Ended																Nine Months Ended
		September 30,								2024 vs. 2023								September 30,								2024 vs. 2023
		2024				2023				$				%				2024				2023				$				%
		(Dollars in Thousands)
Management Fees, Net
Base Management Fees		$	119,379			$	116,810			$	2,569				2%			$	351,020			$	356,037			$	(5,017	)			-1%
Transaction and Other Fees, Net			940				964				(24	)			-2%				2,919				3,020				(101	)			-3%
Management Fee Offsets			—				—				—				n/m				(80	)			(3	)			(77	)			n/m
Total Management Fees, Net			120,319				117,774				2,545				2%				353,859				359,054				(5,195	)			-1%
Fee Related Compensation			(37,643	)			(43,037	)			5,394				-13%				(113,961	)			(127,861	)			13,900				-11%
Other Operating Expenses			(25,668	)			(24,406	)			(1,262	)			5%				(75,233	)			(76,108	)			875				-1%
Fee Related Earnings			57,008				50,331				6,677				13%				164,665				155,085				9,580				6%
Realized Performance Revenues			5,078				6,901				(1,823	)			-26%				42,883				16,615				26,268				158%
Realized Performance Compensation			(1,520	)			(6,518	)			4,998				-77%				(15,142	)			(10,332	)			(4,810	)			47%
Realized Principal Investment Income (Loss)			715				2,072				(1,357	)			-65%				(17,247	)			3,700				(20,947	)			n/m
Net Realizations			4,273				2,455				1,818				74%				10,494				9,983				511				5%
Segment Distributable Earnings		$	61,281			$	52,786			$	8,495				16%			$	175,159			$	165,068			$	10,091				6%

n/m  Not meaningful.

Three Months Ended September 30, 2024 Compared to Three Months Ended September 30, 2023

Segment Distributable Earnings were $61.3 million for the three months ended September 30, 2024, an increase of $8.5 million, compared to $52.8 million for the three months ended September 30, 2023. The increase in Segment Distributable Earnings was attributable to increases of $6.7 million in Fee Related Earnings and $1.8 million in Net Realizations.

Nearly all strategies across our Multi-Asset Investing segment exhibited positive performance in the third quarter of 2024, with significantly less volatility than the broader markets. The Absolute Return Composite had its eighteenth consecutive quarter of positive performance, benefiting from performance across strategies, including equities, quantitative and credit. Segment Distributable Earnings in the Multi-Asset Investing segment would likely be negatively impacted, however, by a significant or sustained weak market environment or decline in asset prices, including as a result of concerns over macroeconomic factors. In addition, certain of our strategies are designed to benefit from a high interest rate environment. Declining interest rates may make it more difficult for these Multi-Asset Investing strategies to replicate their positive performance. Conversely, if interest rates remain at sustained high levels for an extended period, certain investors may seek to reallocate capital away from traditional Multi-Asset Investing strategies in favor of fixed income investments. Outperformance by our Multi-Asset Investing segment strategies in a weak market environment has in some cases resulted in such strategies representing an increasing portion of the value of certain investors’ portfolios, which may limit such investors’ ability to allocate additional capital to certain funds in the segment, or result in such investors seeking to withdraw capital from such funds.

Fee Related Earnings

Fee Related Earnings were $57.0 million for the three months ended September 30, 2024, an increase of $6.7 million, compared to $50.3 million for the three months ended September 30, 2023. The increase in Fee Related Earnings was primarily attributable to a decrease of $5.4 million in Fee Related Compensation.

Fee Related Compensation was $37.6 million for the three months ended September 30, 2024, a decrease of $5.4 million, compared to $43.0 million for the three months ended September 30, 2023. The decrease was primarily due to lower compensation accruals.

Net Realizations

Net Realizations were $4.3 million for the three months ended September 30, 2024, an increase of $1.8 million, compared to $2.5 million for the three months ended September 30, 2023. The increase in Net Realizations was attributable to a decrease of $5.0 million in Realized Performance Compensation, partially offset by decreases of $1.8 million in Realized Performance Revenues and $1.4 million in Realized Principal Investment Income (Loss).

Realized Performance Compensation was $1.5 million for the three months ended September 30, 2024, a decrease of $5.0 million, compared to $6.5 million for the three months ended September 30, 2023. The decrease was primarily due to the decrease in Realized Performance Revenues.

Realized Performance Revenues were $5.1 million for the three months ended September 30, 2024, a decrease of $1.8 million, compared to $6.9 million for the three months ended September 30, 2023. The decrease was primarily due to lower Realized Performance Revenues in Absolute Return.

Realized Principal Investment Income (Loss) was $0.7 million for the three months ended September 30, 2024, a decrease of $1.4 million, compared to $2.1 million for the three months ended September 30, 2023. The decrease was primarily due to realized losses in Absolute Return.

Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023

Segment Distributable Earnings were $175.2 million for the nine months ended September 30, 2024, an increase of $10.1 million, compared to $165.1 million for the nine months ended September 30, 2023. The increase in Segment Distributable Earnings was attributable to increases of $9.6 million in Fee Related Earnings and $0.5 million in Net Realizations.

Fee Related Earnings

Fee Related Earnings were $164.7 million for the nine months ended September 30, 2024, an increase of $9.6 million, compared to $155.1 million for the nine months ended September 30, 2023. The increase in Fee Related Earnings was primarily attributable to a decrease of $13.9 million in Fee Related Compensation, partially offset by a decrease of $5.2 million in Management Fees, Net.

Fee Related Compensation was $114.0 million for the nine months ended September 30, 2024, a decrease of $13.9 million, compared to $127.9 million for the nine months ended September 30, 2023. The decrease was primarily due to lower compensation accruals.

Management Fees, Net were $353.9 million for the nine months ended September 30, 2024, a decrease of $5.2 million, compared to $359.1 million for the nine months ended September 30, 2023, primarily driven by a decrease in Base Management Fees. Base Management Fees decreased $5.0 million, primarily due to a decrease in Fee-Earning Assets Under Management in Absolute Return.

Net Realizations

Net Realizations were $10.5 million for the nine months ended September 30, 2024, an increase of $0.5 million, compared to $10.0 million for the nine months ended September 30, 2023. The increase in Net Realizations was primarily attributable to an increase of $26.3 million in Realized Performance Revenues, partially offset by a decrease of $20.9 million in Realized Principal Investment Income (Loss).

Realized Performance Revenues were $42.9 million for the nine months ended September 30, 2024, an increase of $26.3 million, compared to $16.6 million for the nine months ended September 30, 2023. The increase was primarily due to higher Realized Performance Revenues in Absolute Return.

Realized Principal Investment Income (Loss) was $(17.2) million for the nine months ended September 30, 2024, a decrease of $20.9 million, compared to $3.7 million for the nine months ended September 30, 2023. The decrease was primarily due to higher realized losses in Multi-Strategy.

Composite Returns

Composite returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The composite returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future results of any particular fund or composite. An investment in Blackstone is not an investment in any of our funds or composites. There can be no assurance that any of our funds or composites or our other existing and future funds or composites will achieve similar returns.

The following table presents the return information of the Absolute Return Composite:

		Three																Nine																Average Annual Returns (a)
		Months Ended																Months Ended																Periods Ended
		September 30,																September 30,																September 30, 2024
		2024								2023								2024								2023								One Year								Three Year								Five Year								Historical
Composite		Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net				Gross				Net
Absolute Return Composite (b)			2	%			2	%			2	%			2	%			9	%			8	%			5	%			5	%			12	%			11	%			8	%			7	%			8	%			7	%			7	%			6	%

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

(a)	Composite returns present a summarized asset-weighted return measure to evaluate the overall performance of the applicable class of Blackstone Funds.

(b)

Absolute Return Composite covers the period from January 2000 to present, although BXMA’s inception date is September 1990. The Absolute Return Composite includes only BXMA-managed commingled and customized multi-manager funds and accounts and does not include BXMA’s liquid solutions, seeding, Multi-Strategy, Harvest and advisory (non-discretionary) platforms, except for investments by Absolute Return funds directly into those platforms. BXMA-managed funds in liquidation and, in the case of net returns, non-fee-paying assets are also excluded. The funds/accounts that comprise the Absolute Return Composite are not managed within a single fund or account and are managed with different mandates. There is no guarantee that BXMA would have made the same mix of investments in a stand-alone fund/account. The Absolute Return Composite is not an investible product and, as such, the performance of the Absolute Return Composite does not represent the performance of an actual fund or account. The historical return is from January 1, 2000.

Operating Metrics

The following table presents information regarding our Invested Performance Eligible Assets Under Management:

		Invested Performance Eligible Assets Under Management								Estimated % Above High Water Mark/ Benchmark (a)
		As of September 30,								As of September 30,
		2024				2023				2024		2023
		(Dollars in Thousands)
Multi-Asset Investing Managed Funds (b)		$	50,287,515			$	44,550,491			98%		93%

(a)

Estimated % Above High Water Mark/Benchmark represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Multi-Asset Investing managed fund has positive investment performance relative to a benchmark, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a benchmark return, thereby resulting in an increase in Estimated % Above High Water Mark/Benchmark.

(b)

For the Multi-Asset Investing managed funds, at September 30, 2024, the incremental appreciation needed for the 2% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks to reach their respective High Water Marks/Benchmarks was $125.7 million, a decrease of $(415.4) million, compared to $541.1 million at September 30, 2023. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks as of September 30, 2024, 6% were within 5% of reaching their respective High Water Mark.

Non-GAAP Financial Measures

These non-GAAP financial measures are presented without the consolidation of any Blackstone Funds that are consolidated into the condensed consolidated financial statements. Consequently, all non-GAAP financial measures exclude the assets, liabilities and operating results related to the Blackstone Funds. See “—Key Financial Measures and Indicators” for our definitions of Distributable Earnings, Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA.

The following table is a reconciliation of Net Income (Loss) Attributable to Blackstone Inc. to Distributable Earnings, Total Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA:

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
		(Dollars in Thousands)
Net Income Attributable to Blackstone Inc.		$	780,835			$	551,994			$	2,072,635			$	1,239,080
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings			603,057				440,609				1,691,604				992,618
Net Income Attributable to Non-Controlling Interests in Consolidated Entities			202,929				20,716				406,339				185,021
Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities			(22,184	)			(92,577	)			(61,595	)			(81,589	)
Net Income			1,564,637				920,742				4,108,983				2,335,130
Provision for Taxes			245,303				196,560				789,220				467,504
Net Income Before Provision for Taxes			1,809,940				1,117,302				4,898,203				2,802,634
Transaction-Related and Non-Recurring Items (a)			(394	)			6,250				56,765				17,099
Amortization of Intangibles (b)			7,333				7,357				21,999				26,110
Impact of Consolidation (c)			(180,745	)			71,861				(344,744	)			(103,432	)
Unrealized Performance Revenues (d)			(1,154,905	)			63,209				(1,723,080	)			708,146
Unrealized Performance Allocations Compensation (e)			465,099				11,866				747,679				(247,228	)
Unrealized Principal Investment (Income) Loss (f)			90,254				(84,780	)			(314,597	)			233,638
Other Revenues (g)			96,329				(63,748	)			32,041				(17,850	)
Equity-Based Compensation (h)			262,798				255,616				875,973				773,505
Administrative Fee Adjustment (i)			3,219				2,425				8,161				7,285
Taxes and Related Payables (j)			(120,278	)			(175,747	)			(461,151	)			(527,132	)
Distributable Earnings			1,278,650				1,211,611				3,797,249				3,672,775
Taxes and Related Payables (j)			120,278				175,747				461,151				527,132
Net Interest and Dividend (Income) Loss (k)			1,731				(3,890	)			14,957				(40,892	)
Total Segment Distributable Earnings			1,400,659				1,383,468				4,273,357				4,159,015
Realized Performance Revenues (l)			(342,669	)			(337,940	)			(1,421,951	)			(1,367,889	)
Realized Performance Compensation (m)			157,570				133,995				661,651				608,389
Realized Principal Investment Income (n)			(40,403	)			(55,500	)			(66,913	)			(91,730	)
Fee Related Earnings		$	1,175,157			$	1,124,023			$	3,446,144			$	3,307,785
Adjusted EBITDA Reconciliation
Distributable Earnings		$	1,278,650			$	1,211,611			$	3,797,249			$	3,672,775
Interest Expense (o)			111,326				110,014				327,390				321,353
Taxes and Related Payables (j)			120,278				175,747				461,151				527,132
Depreciation and Amortization (p)			24,685				21,598				76,074				68,873
Adjusted EBITDA		$	1,534,939			$	1,518,970			$	4,661,864			$	4,590,133

(a)

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. For the nine months ended September 30, 2024, this adjustment includes removal of an accrual for an estimated liability for a legal matter.

(b)	This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation.

(c)	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 and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.

(d)	This adjustment removes Unrealized Performance Revenues on a segment basis. The Segment Adjustment represents the add back of performance revenues earned from consolidated Blackstone funds which have been eliminated in consolidation.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(Dollars in Thousands)
GAAP Unrealized Performance Allocations		$	1,154,918			$	(63,204	)		$	1,723,090			$	(708,021	)
Segment Adjustment			(13	)			(5	)			(10	)			(125	)
Unrealized Performance Revenues		$	1,154,905			$	(63,209	)		$	1,723,080			$	(708,146	)

(e)	This adjustment removes Unrealized Performance Allocations Compensation.

(f)

This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment 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.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(Dollars in Thousands)
GAAP Unrealized Principal Investment Income (Loss)		$	(1,864	)		$	69,340			$	427,983			$	(257,988	)
Segment Adjustment			(88,390	)			15,440				(113,386	)			24,350
Unrealized Principal Investment Income (Loss)		$	(90,254	)		$	84,780			$	314,597			$	(233,638	)

(g)	This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned from consolidated Blackstone funds which have been eliminated in consolidation, and (2) the removal of certain Transaction-Related and Non-Recurring Items.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(Dollars in Thousands)
GAAP Other Revenue		$	(96,312	)		$	63,769			$	(31,861	)		$	17,951
Segment Adjustment			(17	)			(21	)			(180	)			(101	)
Other Revenues		$	(96,329	)		$	63,748			$	(32,041	)		$	17,850

(h)	This adjustment removes Equity-Based Compensation on a segment basis.

(i)	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.

(j)

Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. For interim periods, taxes are calculated using the preferred annualized effective tax rate approach. Related Payables represent tax-related payables including the amount payable under the tax receivable agreement. See “—Key Financial Measures and Indicators — Distributable Earnings” for the full definition of Taxes and Related Payables.

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(Dollars in Thousands)
Taxes		$	95,483			$	151,812			$	393,012			$	459,770
Related Payables			24,795				23,935				68,139				67,362
Taxes and Related Payables		$	120,278			$	175,747			$	461,151			$	527,132

(k)	This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the tax receivable agreement.

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
		(Dollars in Thousands)
GAAP Interest and Dividend Revenue		$	109,774			$	109,133			$	312,612			$	348,123
Segment Adjustment			(179	)			4,771				(179	)			14,122
Interest and Dividend Revenue			109,595				113,904				312,433				362,245
GAAP Interest Expense			111,337				110,599				328,156				323,136
Segment Adjustment			(11	)			(585	)			(766	)			(1,783	)
Interest Expense			111,326				110,014				327,390				321,353
Net Interest and Dividend Income (Loss)		$	(1,731	)		$	3,890			$	(14,957	)		$	40,892

(l)	This adjustment removes the total segment amount of Realized Performance Revenues.

(m)	This adjustment removes the total segment amount of Realized Performance Compensation.

(n)	This adjustment removes the total segment amount of Realized Principal Investment Income.

(o)	This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the tax receivable agreement.

(p)	This adjustment adds back Depreciation and Amortization on a segment basis.

The following tables are a reconciliation of Total GAAP Investments to Net Accrued Performance Revenues. Total GAAP Investments and Net Accrued Performance Revenues consist of the following:

		September 30,
		2024				2023
		(Dollars in Thousands)
Investments of Consolidated Blackstone Funds		$	3,873,027			$	5,224,104
Equity Method Investments
Partnership Investments			6,295,704				5,588,222
Accrued Performance Allocations			12,411,485				11,606,901
Corporate Treasury Investments			147,642				763,515
Other Investments			5,594,857				4,157,115
Total GAAP Investments		$	28,322,715			$	27,339,857
Accrued Performance Allocations - GAAP		$	12,411,485			$	11,606,901
Due from Affiliates - GAAP (a)			253,490				196,510
Less: Net Realized Performance Revenues (b)			(141,896	)			(367,944	)
Less: Accrued Performance Compensation - GAAP (c)			(5,531,520	)			(5,000,253	)
Net Accrued Performance Revenues		$	6,991,559			$	6,435,214

(a)	Represents GAAP accrued performance revenue recorded within Due from Affiliates.

(b)	Represents Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable Earnings in the period they are realized.

(c)	Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation and Benefits and Due to Affiliates.

Liquidity and Capital Resources

General

Blackstone’s business model derives revenue primarily from third party Assets Under Management. Blackstone is not a capital or balance sheet intensive business and targets operating expense levels such that total management and advisory fees exceed total operating expenses each period. As a result, we require limited capital resources to support the working capital or operating needs of our businesses. We draw primarily on the long-term committed or invested capital of investors in our investment vehicles to fund the investment requirements of the Blackstone Funds and use our own realizations and cash flows to invest in growth initiatives, make commitments to our own funds, where our minimum general partner commitments are generally less than 5% of the limited partner commitments of a fund, and pay dividends to stockholders and distributions to holders of Holdings Units.

Fluctuations in our statement of financial condition result primarily from activities of the Blackstone Funds that are consolidated as well as business transactions, such as the issuance of senior notes. The majority economic ownership interests of such consolidated Blackstone funds are reflected as Redeemable Non-Controlling Interests in Consolidated Entities, and Non-Controlling Interests in Consolidated Entities in the Consolidated Financial Statements. The consolidation of these Blackstone Funds has no net effect on Blackstone’s Net Income or Equity. Additionally, fluctuations in our statement of financial condition also include appreciation or depreciation in Blackstone investments in the non-consolidated Blackstone Funds, additional investments and redemptions of such interests in the non-consolidated Blackstone Funds and the collection of receivables related to management and advisory fees.

Total Assets were $42.6 billion as of September 30, 2024, an increase of $2.3 billion from December 31, 2023. The increase in Total Assets was principally due to an increase of $2.9 billion in total assets attributable to consolidated operating partnerships, partially offset by a decrease of $549.2 million in total assets attributable to consolidated Blackstone funds.

	•		The increase in total assets attributable to consolidated operating partnerships was primarily due to increases of $2.7 billion in Investments and $708.6 million in Due from Affiliates, partially offset by a decrease of $602.5 million in Cash and Cash Equivalents.

	o	The increase in Investments was primarily due to appreciation in our Private Equity segment, partially offset by net sales in our Private Equity segment.

	o	The increase in Due from Affiliates was primarily due to an increase in amounts due from certain non-controlling interest holders and Blackstone employees.

	o	The decrease in Cash and Cash Equivalents was primarily due to ongoing operating activities.

	•		The decrease in total assets attributable to consolidated Blackstone funds was primarily due to decreases of $446.5 million in Investments and $135.7 million in Cash Held by Blackstone Funds and Other, which were primarily due to the deconsolidation of two CLOs during the nine months ended September 30, 2024.

Total Liabilities were $23.1 billion as of September 30, 2024, an increase of $898.2 million from December 31, 2023. The increase in Total Liabilities was principally due to an increase of $1.8 billion in total liabilities attributable to consolidated operating partnerships, partially offset by a decrease of $898.2 million in total liabilities attributable to consolidated Blackstone funds.

	•		The increase in total liabilities attributable to consolidated operating partnerships was primarily due to increases of $1.2 billion in Accrued Compensation and Benefits and $242.9 million in Accounts Payable, Accrued Expenses and Other Liabilities.

	o	The increase in Accrued Compensation and Benefits was primarily due to an increase in compensation-related accruals.

	o	The increase in Accounts Payable, Accrued Expenses and Other Liabilities was primarily due to an increase in derivative liabilities.

	•		The decrease in total liabilities attributable to consolidated Blackstone funds was primarily due to decreases of $579.4 million in Loans Payable and $317.5 million in Accounts Payable, Accrued Expenses and Other Liabilities, which were primarily due to the deconsolidation of two CLOs during the nine months ended September 30, 2024.

Sources and Uses of Liquidity

We have multiple sources of liquidity to meet our capital needs, including annual cash flows, accumulated earnings in our businesses, the proceeds from our issuances of senior notes, liquid investments we hold on our balance sheet and access to our $4.325 billion committed revolving credit facility. As of September 30, 2024, Blackstone had $2.4 billion in Cash and Cash Equivalents, $147.6 million invested in Corporate Treasury Investments and $5.6 billion in Other Investments (which included $5.1 billion of liquid investments), against $10.7 billion in borrowings from our bond issuances, and no borrowings outstanding under our revolving credit facility.

In addition to the cash we receive from our notes offerings and availability under our revolving credit facility, we expect to receive (a) cash generated from operating activities, (b) Performance Revenue realizations, and (c) realizations on the fund investments that we make. The amounts received from these three sources in particular may vary substantially from year to year and quarter to quarter depending on the frequency and size of realization events or net returns experienced by our investment funds. Our available capital could be adversely affected if there are prolonged periods of few substantial realizations from our investment funds accompanied by substantial capital calls for new investments from those investment funds. Therefore, Blackstone’s commitments to our funds are taken into consideration when managing our overall liquidity and cash position.

We expect that our primary liquidity needs will be cash to (a) provide capital to facilitate the growth of our existing businesses, which principally includes funding our general partner and co-investment commitments to our funds, (b) provide capital for business expansion, (c) pay operating expenses, including cash compensation to our employees and other obligations as they arise, (d) fund modest capital expenditures, (e) repay borrowings and related interest costs, (f) pay income taxes, (g) repurchase shares of our common stock and Blackstone Holdings Partnership Units pursuant to our repurchase program and (h) pay dividends to our stockholders and distributions to the holders of Blackstone Holdings Partnership Units. For a tabular presentation of Blackstone’s contractual obligations and the expected timing of such see “—Contractual Obligations.”

Capital Commitments

Our own capital commitments to our funds, the funds we invest in and our investment strategies as of September 30, 2024 consisted of the following:

										Senior Managing Directors
		Blackstone and								and Certain Other
		General Partner (a)								Professionals (b)
		Original				Remaining				Original				Remaining
Fund		Commitment				Commitment				Commitment				Commitment
		(Dollars in Thousands)
Real Estate
BREP VII		$	300,000			$	22,666			$	100,000			$	7,555
BREP VIII			300,000				37,581				100,000				12,527
BREP IX			300,000				46,361				100,000				15,454
BREP X			300,000				221,095				100,000				73,698
BREP Europe III			100,000				11,257				35,000				3,752
BREP Europe IV			130,000				19,109				43,333				6,370
BREP Europe V			150,000				17,917				43,333				5,176
BREP Europe VI			130,000				40,529				43,333				13,510
BREP Europe VII			130,000				104,621				43,333				34,874
BREP Asia I			50,392				10,342				16,797				3,447
BREP Asia II			70,707				12,878				23,569				4,293
BREP Asia III			81,078				66,237				27,026				22,079
BREDS III			50,000				11,721				16,667				3,907
BREDS IV			50,000				15,751				49,113				15,471
BREDS V			50,000				42,448				48,070				40,809
BPP			324,896				18,994				—				—
Other (c)			36,749				15,016				—				—
Total Real Estate			2,553,822				714,523				789,574				262,922

continued...

										Senior Managing Directors
		Blackstone and								and Certain Other
		General Partner (a)								Professionals (b)
		Original				Remaining				Original				Remaining
Fund		Commitment				Commitment				Commitment				Commitment
		(Dollars in Thousands)
Private Equity
BCP V		$	629,356			$	30,642			$	—			$	—
BCP VI			719,718				81,400				250,000				28,275
BCP VII			500,000				36,635				225,000				16,486
BCP VIII			500,000				146,607				225,000				65,973
BCP IX			500,000				500,000				225,000				225,000
BEP I			50,000				4,728				—				—
BEP II			80,000				12,018				26,667				4,006
BEP III			80,000				28,956				26,667				9,652
BETP IV			80,000				80,000				26,667				26,667
BCEP I			117,747				27,016				18,992				4,358
BCEP II			160,000				93,383				32,640				19,050
BCP Asia I			40,000				5,869				13,333				1,956
BCP Asia II			100,000				70,478				33,333				23,493
Tactical Opportunities			492,133				193,955				164,044				64,652
Secondaries			1,495,155				698,806				1,166,041				582,166
BIP			403,146				85,035				—				—
BXLS			142,057				74,162				37,352				23,000
BXG			166,154				110,562				54,607				36,233
Other (c)			290,207				31,281				—				—
Total Private Equity			6,545,673				2,311,533				2,525,343				1,130,967
Credit & Insurance
Mezzanine / Opportunistic II			120,000				29,059				110,101				26,662
Mezzanine / Opportunistic III			130,783				34,664				98,118				26,006
Mezzanine / Opportunistic IV			122,000				57,136				115,980				54,317
Mezzanine / Opportunistic V			47,810				47,810				15,937				15,937
Stressed / Distressed II			125,000				51,612				119,878				49,497
Stressed / Distressed III			151,000				93,582				146,432				90,751
Energy I			80,000				36,700				75,445				34,611
Energy II			150,000				103,508				148,577				102,526
Green Energy III			127,000				108,611				118,776				101,578
European Senior Debt I			63,000				5,084				56,882				4,590
European Senior Debt II			92,822				32,610				89,599				31,525
European Senior Debt III			24,822				15,811				8,274				5,270
Credit Alpha Fund			52,102				19,752				50,670				19,209
Credit Alpha Fund II			25,500				12,550				24,385				12,001
Insurance Platform			501,600				129,053				1,600				412
Other (c)			209,684				98,841				72,377				29,340
Total Credit & Insurance			2,023,123				876,383				1,253,031				604,232

continued...

										Senior Managing Directors
		Blackstone and								and Certain Other
		General Partner (a)								Professionals (b)
		Original				Remaining				Original				Remaining
Fund		Commitment				Commitment				Commitment				Commitment
		(Dollars in Thousands)
Multi-Asset Investing
Strategic Alliance II		$	50,000			$	1,482			$	—			$	—
Strategic Alliance III			22,000				18,223				—				—
Strategic Alliance IV			15,000				11,087				—				—
Dislocation			20,000				12,019				—				—
Other (c)			6,346				2,139				—				—
Total Multi-Asset Investing			113,346				44,950				—				—
Other
Treasury (d)			1,696,402				1,491,410				—				—
		$	12,932,366			$	5,438,799			$	4,567,948			$	1,998,121

(a)

We expect our commitments to be drawn down over time and to be funded by available cash and cash generated from operations and realizations. Taking into account prevailing market conditions and both the liquidity and cash or liquid investment balances, we believe that the sources of liquidity described above will be more than sufficient to fund our working capital requirements. Additionally, for some of the general partner commitments shown in the table above, we require our senior managing directors and certain other professionals to fund a portion of the commitment even though the ultimate obligation to fund the aggregate commitment is ours pursuant to the governing agreements of the respective funds. The amounts of the aggregate applicable general partner original and remaining commitment are shown in the table above.

(b)

Includes the full portion of our commitments (i) required to be funded by senior managing directors and certain other professionals and (ii) that are elected by such individuals to be funded for the life of a fund, where such fund permits such election. Excludes amounts that are elected by such individuals to be funded on an annual basis and certain de minimis commitments funded by such individuals in certain carry funds.

(c)	Represents capital commitments to a number of other funds in each respective segment.

(d)	Represents loan origination commitments, revolver commitments and capital market commitments.

For a tabular presentation of the timing of Blackstone’s remaining capital commitments to our funds, the funds we invest in and our investment strategies see “—Contractual Obligations.”

Borrowings

As of September 30, 2024, Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of Blackstone, had issued and outstanding the following senior notes (collectively the “Notes”):

		Aggregate
		Principal
		Amount
		(Dollars/Euros
Senior Notes (a)		in Thousands)
2.000%, Due 5/19/2025		€	300,000
1.000%, Due 10/5/2026		€	600,000
3.150%, Due 10/2/2027		$	300,000
5.900%, Due 11/3/2027		$	600,000
1.625%, Due 8/5/2028		$	650,000
1.500%, Due 4/10/2029		€	600,000
2.500%, Due 1/10/2030		$	500,000
1.600%, Due 3/30/2031		$	500,000
2.000%, Due 1/30/2032		$	800,000
2.550%, Due 3/30/2032		$	500,000
6.200%, Due 4/22/2033		$	900,000
3.500%, Due 6/1/2034		€	500,000
6.250%, Due 8/15/2042		$	250,000
5.000%, Due 6/15/2044		$	500,000
4.450%, Due 7/15/2045		$	350,000
4.000%, Due 10/2/2047		$	300,000
3.500%, Due 9/10/2049		$	400,000
2.800%, Due 9/30/2050		$	400,000
2.850%, Due 8/5/2051		$	550,000
3.200%, Due 1/30/2052		$	1,000,000
		$	10,727,000

(a)

The Notes are unsecured and unsubordinated obligations of the Issuer and are fully and unconditionally guaranteed, jointly and severally, by Blackstone Inc. and each of the Blackstone Holdings Partnerships. The Notes contain customary covenants and financial restrictions that, among other things, limit the Issuer and the guarantors’ ability, subject to certain exceptions, to 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 Notes also contain customary events of default. All or a portion of the Notes may be redeemed at our 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 Notes are subject to repurchase at the repurchase price as set forth in the Notes.

Blackstone, through the Issuer, has a $4.325 billion unsecured revolving credit facility (the “Credit Facility”) with Citibank, N.A., as administrative agent with a maturity date of December 15, 2028. 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 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.

For a tabular presentation of the payment timing of principal and interest due on Blackstone’s issued notes and the Credit Facility see “—Contractual Obligations.”

Contractual Obligations

The following table sets forth information relating to our contractual obligations as of September 30, 2024 on a consolidated basis and on a basis deconsolidating the Blackstone Funds:

		October 1, 2024 to
Contractual Obligations		December 31, 2024				2025-2026				2027-2028				Thereafter				Total
		(Dollars in Thousands)
Operating Lease Obligations (a)		$	44,892			$	359,732			$	422,473			$	1,275,698			$	2,102,795
Purchase Obligations			75,905				165,931				49,376				3,999				295,211
Blackstone Operating Borrowings (b)			-				1,016,421				1,575,679				8,174,850				10,766,950
Interest on Blackstone Operating Borrowings (c)			92,897				692,154				624,987				3,269,364				4,679,402
Borrowings of Consolidated Blackstone Funds			-				-				-				118,796				118,796
Interest on Borrowings of Consolidated Blackstone Funds			2,448				19,585				19,585				17,546				59,164
Blackstone Funds Capital Commitments to Investee Funds (d)			351,285				-				-				-				351,285
Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable Agreements (e)			-				198,697				218,540				1,330,524				1,747,761
Unrecognized Tax Benefits, Including Interest and Penalties (f)			-				-				-				-				-
Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other (g)			5,438,799				-				-				-				5,438,799
Consolidated Contractual Obligations			6,006,226				2,452,520				2,910,640				14,190,777				25,560,163
Borrowings of Consolidated Blackstone Funds			-				-				-				(118,796	)			(118,796	)
Interest on Borrowings of Consolidated Blackstone Funds			(2,448	)			(19,585	)			(19,585	)			(17,546	)			(59,164	)
Blackstone Funds Capital Commitments to Investee Funds (d)			(351,285	)			-				-				-				(351,285	)
Blackstone Operating Entities Contractual Obligations		$	5,652,493			$	2,432,935			$	2,891,055			$	14,054,435			$	25,030,918

(a)

We lease our primary office space and certain office equipment under agreements that expire through 2043. 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 in the table above. The table above includes operating leases that are recognized as Operating Lease Liabilities, short-term leases that are not recorded as Operating Lease Liabilities and leases that have been signed but not yet commenced which are not recorded as Operating Lease Liabilities. The amounts in this table are presented net of contractual sublease commitments.

(b)

Represents the principal amounts due on our senior notes and secured borrowings. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. For our secured borrowings we project pre-payments based on the performance of the underlying assets and principal may be paid down in full prior to their stated maturity. As of September 30, 2024, we had no borrowings outstanding under our revolver.

(c)

Represents interest to be paid over the maturity of our senior notes and secured borrowings. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. For our secured borrowings, we project pre-payments based on the performance of the underlying assets with interest payments based on the estimated principal outstanding, inclusive of projected pre-payments. These amounts include commitment fees for unutilized borrowings under our revolver.

(d)	These obligations represent commitments of the consolidated Blackstone funds to make capital contributions to investee funds and portfolio companies. These amounts are generally due on demand and are therefore presented in the less than one year category.

(e)

Represents obligations by Blackstone’s corporate subsidiary to make payments under the tax receivable agreements to certain non-controlling interest holders for the tax savings realized from the taxable purchases of their interests in connection with the reorganization at the time of Blackstone’s initial public offering (“IPO”) in 2007 and subsequent purchases. The obligation represents the amount of the payments currently expected to be made, which are dependent on the tax savings actually realized as determined annually without discounting for the timing of the payments. As required by GAAP, the amount of the obligation included in the condensed consolidated financial statements and shown in Note 16. “Related Party Transactions” (see “Part I. Item 1. Financial Statements”) differs to reflect the net present value of the payments due to certain non-controlling interest holders.

(f)	Blackstone is not able to make a reasonably reliable estimate of the timing of payments in individual years in connection with gross unrecognized benefits of $247.0 million and interest of $81.0 million as of September 30, 2024; therefore, such amounts are not included in the above contractual obligations table.

(g)

These obligations represent commitments by us to provide general partner capital funding to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. These amounts are generally due on demand and are therefore presented in the less than one year category; however, a substantial amount of the capital commitments are expected to be called over the next three years. We expect to continue to make these general partner capital commitments as we raise additional amounts for our investment funds over time.

Guarantees

Blackstone and certain of its consolidated funds provide financial guarantees. The amounts and nature of these guarantees are described in Note 17. “Commitments and Contingencies — Contingencies — Guarantees” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.

Indemnifications

In many of its service contracts, Blackstone agrees to indemnify the third party service provider under certain circumstances. The terms of the indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined and has not been included in the above contractual obligations table or recorded in our condensed consolidated financial statements as of September 30, 2024.

Clawback Obligations

Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceed the amount due to Blackstone based on cumulative results of that fund. The amounts and nature of Blackstone’s clawback obligations are described in Note 17. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.

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 number 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 three and nine months ended September 30, 2024, Blackstone repurchased 1.0 million and 3.7 million shares of common stock at a total cost of $140.8 million and $473.5 million, respectively. As of September 30, 2024, the amount remaining available for repurchases under the program was $1.9 billion.

Dividends

Our intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by our board of directors to be necessary or appropriate to provide for the conduct of our business, to make appropriate investments in our business and funds, to comply with applicable law, any of our debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and dividends to stockholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one quarter.

For Blackstone’s definition of Distributable Earnings, see “—Key Financial Measures and Indicators.”

All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of our board of directors and our board of directors may change our dividend policy at any time, including, without limitation, to reduce such quarterly dividends or even to eliminate such dividends entirely.

Because the publicly traded entity and/or its wholly owned subsidiaries must pay taxes and make payments under the tax receivable agreements, the amounts ultimately paid as dividends by Blackstone to common stockholders in respect of each fiscal year are generally expected to be less, on a per share or per unit basis, than the amounts distributed by the Blackstone Holdings Partnerships to the Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships in respect of their Blackstone Holdings Partnership Units. Following Blackstone’s conversion from a limited partnership to a corporation, we expect to pay more corporate income taxes than we would have as a limited partnership, which will increase this difference between the per share dividend and per unit distribution amounts.

Dividends are treated as qualified dividends to the extent of Blackstone’s current and accumulated earnings and profits, with any excess dividends treated as a return of capital to the extent of the stockholder’s basis.

The following graph shows fiscal quarterly and annual per common stockholder dividends for 2024 and 2023. Dividends are declared and paid in the quarter subsequent to the quarter in which they are earned.

With respect to the third quarter of fiscal year 2024, we declared to stockholders of our common stock a dividend of $0.86 per share, aggregating to $2.51 per share of common stock in respect of the three fiscal quarters ended September 30, 2024. With respect to fiscal year 2023, we paid stockholders aggregate dividends of $3.35 per share.

Leverage

We may under certain circumstances use leverage opportunistically and over time to create the most efficient capital structure for Blackstone and our stockholders. In addition to the borrowings from our note issuances and our revolving credit facility, we may use asset based financing arrangements, including but not limited to, margin loans, reverse repurchase agreements, repurchase agreements and securities sold, not yet purchased. Reverse repurchase agreements are entered into primarily to take advantage of opportunistic yields otherwise absent in the overnight markets and also to use the collateral received to cover securities sold, not yet purchased. Repurchase agreements are entered into primarily to opportunistically yield higher spreads on purchased securities. The balances held in these financial instruments fluctuate based on Blackstone’s liquidity needs, market conditions and investment risk profiles.

The following table presents information regarding financial instruments which are included in Accounts Payable, Accrued Expenses and Other Liabilities in our Condensed Consolidated Statements of Financial Condition:

						Securities
		Repurchase				Sold, Not Yet
		Agreements				Purchased
		(Dollars in Millions)
Balance, September 30, 2024		$	100.3			$	4.0
Balance, December 31, 2023		$	—			$	3.9
Nine Months Ended September 30, 2024
Average Daily Balance		$	23.4			$	3.9
Maximum Daily Balance		$	120.2			$	4.0

Critical Accounting Policies

We prepare our condensed consolidated financial statements in accordance with GAAP. In applying many of these accounting principles, we need to make assumptions, estimates and/or judgments that affect the reported amounts of assets, liabilities, revenues and expenses in our condensed consolidated financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates and/or judgments, however, are often subjective. Actual results may be affected negatively based on changing circumstances. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts become known. We believe the following critical accounting policies could potentially produce materially different results if we were to change underlying assumptions, estimates and/or judgments. For a description of our accounting policies, see Note 2. “Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.

Principles of Consolidation

For a description of our accounting policy on consolidation, see Note 2. “Summary of Significant Accounting Policies — Consolidation” and Note 9. “Variable Interest Entities” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” for detailed information on Blackstone’s involvement with VIEs. The following discussion is intended to provide supplemental information about how the application of consolidation principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.

The determination that Blackstone holds a controlling financial interest in a Blackstone Fund or investment vehicle significantly changes the presentation of our condensed consolidated financial statements. In our Condensed Consolidated Statements of Financial Position included in this filing, we present 100% of the assets and liabilities of consolidated VIEs along with a non-controlling interest which represents the portion of the consolidated vehicle’s interests held by third parties. However, assets of our consolidated VIEs can only be used to settle obligations of the consolidated VIE and are not available for general use by Blackstone. Further, the liabilities of our consolidated VIEs do not have recourse to the general credit of Blackstone. In the Condensed Consolidated Statements of Operations, we eliminate any management fees, Incentive Fees, or Performance Allocations received or accrued from consolidated VIEs as they are considered intercompany transactions. We recognize 100% of the consolidated VIE’s investment income (loss) and allocate the portion of that income (loss) attributable to third party ownership to non-controlling interests in arriving at Net Income Attributable to Blackstone Inc.

The assessment of whether we consolidate a Blackstone Fund or investment vehicle we manage requires the application of significant judgment. These judgments are applied both at the time we become involved with the VIE and on an ongoing basis and include, but are not limited to:

	•		Determining whether our management fees, Incentive Fees or Performance Allocations represent variable interests – We make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees and at market rates. In making this judgment, we consider, among other things, the extent of third party investment in the entity and the terms of any other interests we hold in the VIE.

	•		Determining whether kick-out rights are substantive – We make judgments as to whether the third party investors in a partnership entity have the ability to remove the general partner, the investment manager or its equivalent, or to dissolve (liquidate) the partnership entity, through a simple majority vote. This includes an evaluation of whether barriers to exercise these rights exist.

	•		Concluding whether Blackstone has an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE – As there is no explicit threshold in GAAP to define “potentially significant,” management must apply judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met.

Revenue Recognition

For a description of our accounting policy on revenue recognition, see Note 2. “Summary of Significant Accounting Policies — Revenue Recognition” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements.” For an additional description of the nature of our revenue arrangements, including how management fees, Incentive Fees, and Performance Allocations are generated, please refer to “Part I. Item 1. Business — Fee Structure/Incentive Arrangements” in our Annual Report on Form 10-K for the year ended December 31, 2023. The following discussion is intended to provide supplemental information about how the application of revenue recognition principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.

Management and Advisory Fees, Net

— Blackstone earns base management fees from its customers at a fixed percentage of a calculation base which is typically assets under management, net asset value, gross asset value, total assets, committed capital or invested capital. The range of management fee rates and the calculation base from which they are earned, generally, are as follows:

On private equity, real estate, and certain of our multi-asset investing and credit-focused funds:

	•		0.25% to 1.75% of committed capital or invested capital during the investment period,

	•		0.25% to 1.50% of invested capital, committed capital or investment fair value subsequent to the investment period for private equity and real estate funds, and

	•		1.15% to 1.50% of invested capital or net asset value subsequent to the investment period for certain of our multi-asset investing and credit-focused funds.

On real estate and credit-focused funds structured like hedge funds:

	•		0.50% to 1.00% of net asset value.

On credit separately managed accounts:

	•		0.20% to 1.35% of net asset value or total assets.

On real estate separately managed accounts:

	•		0.35% to 2.00% of invested capital, net operating income or net asset value.

On insurance separately managed accounts and investment vehicles:

	•		0.25% to 1.00% of net asset value.

On funds of hedge funds, certain hedge funds and separately managed accounts invested in hedge funds:

	•		0.20% to 1.50% of net asset value.

On CLO vehicles:

	•		0.20% to 0.50% of the aggregate par amount of collateral assets, including principal cash.

On credit-focused registered and non-registered investment companies:

	•		0.25% to 1.25% of total assets or net asset value.

On certain real estate and private equity-focused registered funds or companies:

	•		1.25% of net asset value.

The investment adviser of BXMT receives annual management fees based on 1.50% of BXMT’s net proceeds received from equity offerings and accumulated “distributable earnings” (which is generally equal to its GAAP net income excluding certain non-cash and other items), subject to certain adjustments.

Management fee calculations based on committed capital or invested capital are mechanical in nature and therefore do not require the use of significant estimates or judgments. Management fee calculations based on net asset value, total assets, or investment fair value depend on the fair value of the underlying investments within the funds. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds and could vary depending on the valuation methodology that is used as well as economic conditions. See “—Fair Value” below for further discussion of the judgment required for determining the fair value of the underlying investments.

Investment Income (Loss)

— Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. Blackstone has concluded that investments made alongside its limited partners in a partnership which entitle Blackstone to a Performance Allocation represent equity method investments that are not in the scope of the GAAP guidance on accounting for revenues from contracts with customers. Blackstone accounts for these arrangements under the equity method of accounting. Under the equity method, 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. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results.

The change in the fair value of the investments held by certain Blackstone Funds is a significant input into the accrued Performance Allocation calculation and accrual for potential repayment of previously received Performance Allocations. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “—Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments.

Fair Value

Blackstone uses fair value throughout the reporting process. For a description of our accounting policies related to valuation, see Note 2. “Summary of Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Investments, at Fair Value” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. The following discussion is intended to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.

The fair value of the investments held by Blackstone Funds is the primary input to the calculation of certain of our management fees, Incentive Fees, Performance Allocations and the related Compensation we recognize. Generally, Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Audit and Accounting Guide,

Investment Companies

, and in accordance with the GAAP guidance on investment companies and reflect their investments, including majority-owned and controlled investments (the “Portfolio Companies”), at fair value. In the absence of observable market prices, we utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of the investments. For investments where little market activity exists management’s determination of fair value is based on the best information available in the circumstances, which may incorporate management’s own assumptions and involves a significant degree of judgment, and the consideration of a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks.

Blackstone has also elected the fair value option for certain instruments it owns directly, including loans and receivables, investments in private debt securities and other proprietary investments. Blackstone is required to measure certain financial instruments at fair value, including debt instruments, equity securities and freestanding derivatives.

Fair Value of Investments or Instruments that are Publicly Traded

Securities that are publicly traded and for which a quoted market exists will be valued at the closing price of such securities in the principal market in which the security trades, or in the absence of a principal market, in the most advantageous market on the valuation date. When a quoted price in an active market exists, no block discounts or control premiums are permitted regardless of the size of the public security held. In some cases, securities will include legal and contractual restrictions limiting their purchase and sale for a period of time. A discount to publicly traded price may be appropriate in instances where a legal restriction is a characteristic of the security, such as may be required under SEC Rule 144. The amount of the discount, if taken, shall be determined based on the time period that must pass before the restricted security becomes unrestricted or otherwise available for sale.

Fair Value of Investments or Instruments that are not Publicly Traded

Investments for which market prices are not observable include private investments in the equity or debt of operating companies or real estate properties. Our primary methodology for determining the fair values of such investments is generally the income approach which provides an indication of fair value based on the present value of cash flows that a business, security, or property is expected to generate in the future. The most widely used methodology under the income approach is the discounted cash flow method which includes significant assumptions about the underlying investment’s projected net earnings or cash flows, discount rate, capitalization rate and exit multiple. Our secondary methodology, generally used to corroborate the results of the income

approach, is typically the market approach. The most widely used methodology under the market approach relies upon valuations for comparable public companies, transactions, or assets, and includes making judgments about which companies, transactions, or assets are comparable. Depending on the facts and circumstances associated with the investment, different primary and secondary methodologies may be used including option value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability weighted methods or recent round of financing.

In certain cases debt and equity securities are valued on the basis of prices from an orderly transaction between market participants 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.

Management Process on Fair Value

Due to the importance of fair value throughout the condensed consolidated financial statements and the significant judgment required to be applied in arriving at those fair values, we have developed a process around valuation that incorporates several levels of approval and review from both internal and external sources. Investments held by Blackstone Funds and investment vehicles are valued on at least a quarterly basis by our internal valuation or asset management teams, which are independent from our investment teams. For investments held by vehicles managed by more than one business unit, Blackstone has developed a process designed to facilitate coordination and alignment, as appropriate, of the fair value of in-scope investments across business units.

For investments valued utilizing the income method and where Blackstone has information rights, we generally have a direct line of communication with each of the Portfolio Companies’ and underlying assets’ finance teams and collect financial data used to support projections used in a discounted cash flow analysis. The valuation team then analyzes the data received and updates the valuation models reflecting any changes in the underlying cash flow projections, weighted-average cost of capital, exit multiple or capitalization rate, and any other valuation input relevant to economic conditions.

The results of all valuations of investments held by Blackstone Funds and investment vehicles are reviewed by the relevant business unit’s valuation sub-committee, which is comprised of key personnel from the business unit, typically the chief investment officer, chief operating officer, chief financial officer, chief compliance officer (or their respective equivalents where applicable) and other senior managing directors in the business. To further corroborate results, each business unit also generally obtains either a positive assurance opinion or a range of value from an independent valuation party, at least annually for internally prepared valuations for investments that have been held by Blackstone Funds and investment vehicles for greater than a year and quarterly for certain investments. Our firmwide valuation committee, chaired by our Chief Financial Officer and comprised of senior members of our businesses and representatives from corporate functions, including legal and finance, reviews the valuation process for investments held by us and our investment vehicles, including the application of appropriate valuation standards on a consistent basis. Each quarter, the valuation process is also reviewed by the audit committee of our board of directors, which is comprised of our non-employee directors.

Income Tax

For a description of our accounting policy on taxes and additional information on taxes see Note 2. “Summary of Significant Accounting Policies” and Note 13. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.

Our provision for income taxes is composed of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.

Additionally, significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax balances (including valuation allowance), accrued interest or penalties and uncertain tax positions. In evaluating these judgments, we consider, among other items, projections of taxable income (including the 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, a valuation allowance is recorded.

Revisions in estimates and/or actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax benefits, if any.

Recent Accounting Developments

Information regarding recent accounting developments and their impact on Blackstone, if any, can be found in Note 2. “Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.