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Actionable news in BX: THE BLACKSTONE GROUP L.P,

The Blackstone Group: Blackstone Reports First Quarter Results

The following excerpt is from the company's SEC filing.

New York, April 21, 2016

: Blackstone (NYSE:BX) today reported its first quarter 2016 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, In the first quarter Blackstone reached a record $344 billion in total assets under management, with $80 billion of gross inflows driving 11% year-over-year AUM growth, and $17 billion of gross inflows in the first quarter alone. Global investors continue to turn to the alternatives asset class, and Blackstone in particular, to provide superior long-term investment performance in a challenging and uncertain environment, fueling these trends . Our major drawdown funds again outperformed the relevant indices in the first quarter and, while certain liquid strategies were not immune to the market turbulence in the period, as a firm weve never been better positioned for long-term success with our clients around the world.

Blackstones press release of its first quarter 2016 results can also be viewed at

www.blackstone.com

Distribution

Blackstone has declared a quarterly distribution of $0.28 per common unit to record holders of common units at the close of business on May 2, 2016. This distribution will be paid on May 9, 2016.

Quarterly Investor Call Details

Blackstone will host a conference call on April 21, 2016 at 11:00 a.m. ET to discuss first quarter 2016 results. The conference call can be accessed via the Shareholders section of Blackstones website at

or by dialing

+1 (877) 391-6747

(U.S. domestic) or

+1 (617) 597-9291

(international), pass code 149 943 55#. For those unable to listen to the live broadcast, a replay will be available on

or by dialing +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), pass code 204 488 67#.

About Blackstone

Blackstone is one of the worlds leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $340 billion in assets under management, include investment vehicles focused on

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

T 212 583 5000

private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at

. Follow Blackstone on Twitter

@Blackstone

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstones current views with respect to, among other things, Blackstones operations and financial performance. You can identify these forward-looking statements by the use of words such as outlook, indicator, believes, expects, potential, continues, may, will, should, seeks, approximately, predicts, intends, plans, estimates, anticipates or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but are not limited to those described under the section entitled Risk Factors in its Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission, which are accessible on the SECs website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This release does not constitute an offer of any Blackstone Fund.

Investor and Media Relations Contacts

Joan Solotar

Tel: +1 (212) 583-5068

solotar@blackstone.com

Weston Tucker

Tel: +1 (212) 583-5231

tucker@blackstone.com

Christine Anderson

Tel: +1 (212) 583-5182

Christine.Anderson@blackstone.com

Blackstones First Quarter 2016 Earnings

Blackstones First Quarter 2016 Highlights

Economic

Income

(ENI)

million

($0.31/unit)

quarter,

Segment

Revenues.

($0.76/unit)

twelve

months

(LTM)

Distributable

(DE)

($0.33/

Realized

Performance

($2.51/unit)

Related

(FRE)

despite

spin-off

Advisory

completed

October

($0.23/unit

diluted)

($0.28/unit

non-cash

transaction

related

expenses

income

attributable

non-controlling

interests,

primarily

inside

ownership.

Assets

Management

(AUM)

$343.7

through

combination

strong

fundraising

organic

expansion.

bringing

billion.

increased

year-over-year,

returning

investors.

Significant

deployment

achieved

leveraging

diverse

platform

opportunities

globally.

payable

Blackstones First Quarter 2016 Segment Earnings

n/m = not meaningful. See page 11 for the GAAP Statement of Operations.

% Change

(Dollars in Thousands, Except per Unit Data)

vs. 1Q'15

1Q'15 LTM

1Q'16 LTM

vs. 1Q'15 LTM

Fee Revenues

614,891

606,953

2,601,360

2,565,467

Performance Fees

1,673,736

314,065

5,286,599

438,406

Investment Income (Loss)

189,641

(26,650)

544,802

(163,442)

Interest Income and Dividend Revenue

30,451

35,081

104,433

136,231

Total Revenues

2,508,719

929,449

8,537,194

2,976,662

Total Expenses

876,936

542,004

3,186,159

2,043,204

16,794

197,919

34,602

Economic Net Income (ENI)

1,622,064

370,651

5,153,116

898,856

ENI per Unit

GAAP Net Income

629,448

150,033

1,948,420

230,374

Fee Related Earnings (FRE)

180,624

219,456

1,008,576

974,443

Distributable Earnings (DE)

1,240,207

387,967

3,825,519

2,991,448

DE per Common Unit

Total AUM

310,451,289

343,705,462

Fee-Earning AUM

223,511,700

244,452,764

Private Equity

1Q16 increase in Corporate

Private Equity carrying value

1Q16 capital raised

Total AUM up 25% YoY

driven

portfolio

appreciation.

Realizations

strategic

Deployed

during

including

closing

several

investments

synergistic

add-on

existing

deals.

Raised

across

segment,

initial

closings

seventh

months.

billion,

flagship

Strategic

Partners,

Tactical

Opportunities

Equity.

(Dollars in Thousands)

124,397

131,133

542,358

525,289

949,800

104,157

2,640,160

(88,611)

76,303

(100)%

203,606

(2,909)

24,381

35,449

1,158,118

245,222

3,410,505

469,218

Compensation

71,072

80,274

277,450

289,450

Performance Fee Compensation

217,602

24,723

635,818

53,871

Other Operating Expenses

38,875

48,063

149,240

208,346

327,549

153,060

1,062,508

551,667

Economic Income (Loss)

830,569

92,162

2,347,997

(82,449)

76,327,189

95,466,227

49,342,211

50,228,312

Real Estate

Opportunistic

funds

values;

quarter.

remained

invested

BioMed

Realty

acquisition,

traded

sciences

office

Sustained

realizations

Gecina

sales,

Properties

Trizec

portfolios.

beginning

returned

period.

increases

opportunistic

strategy.

European

mezzanine

1Q16 Realized Performance Fees

$101.1

Total AUM up 9% YoY

158,721

230,197

683,260

822,366

637,022

202,939

2,317,202

558,063

108,854

10,838

322,283

(94,323)

13,188

34,084

47,181

914,594

457,162

3,356,829

1,333,287

84,834

100,578

330,918

374,125

151,343

77,070

674,558

230,912

40,143

48,097

153,119

187,129

276,320

225,745

1,158,595

792,166

638,274

231,417

2,198,234

541,121

92,785,658

101,107,528

50,783,247

67,298,439

1Q16 increase in opportunistic

funds carrying value

Hedge Fund Solutions

(2.9)%

1Q16 Composite Gross Return

Incentive Fee Eligible AUM at 1Q16

1Q16 Fee-Earning Gross Inflows

composite

conditions.

customized

commingled

individual

solutions.

subscriptions

continued

diversification

confidence

BAAMs

ability

managing

year-over-year.

128,775

129,313

497,022

525,612

57,943

139,663

(5,892)

(17,036)

(25,320)

12,402

18,621

184,775

117,354

648,626

522,885

56,104

54,169

147,191

177,549

19,121

41,267

21,206

26,146

87,855

95,012

96,431

80,983

276,313

279,174

88,344

36,371

372,313

243,711

66,378,908

68,475,416

64,114,498

64,831,253

The composite gross return is based on the BAAM Principal Solutions (BPS) Composite, which does not include BAAMs individual investor solutions (liquid alternatives), long-biased

commodities, ventures (seeding and minority interests), strategic opportunities (co-investments), Senfina (direct trading) and advisory (non-discretionary) platforms, except for

investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation are also excluded. On a net of fees basis, the BPS Composite was (3.1)% for 1Q16.

Credit

markets

experience

significant

volatility,

creating

deployed

activity

rescue

lending

strategies.

Distressed

Performing

Strategies

negatively

impacted

energy

investments.

dislocation

robust

pipeline

platform.

Continued

1Q16 Total Capital Deployed

Total AUM up 5% YoY

1Q16 Composite Gross Returns

Performing Credit

(3.3)%

122,129

116,310

465,610

476,640

28,971

189,574

(35,018)

(20,535)

17,383

(38,731)

22,830

25,696

165,875

109,711

695,397

428,587

49,877

52,382

187,325

192,694

15,750

100,422

(24,577)

21,836

26,220

79,521

98,010

87,463

82,216

367,268

266,127

78,412

27,495

328,129

162,460

74,959,534

78,656,291

59,271,744

62,094,760

Performing Credit Strategies include mezzanine lending funds, Business Development Companies (BDCs) and other performing credit strategy funds. Distressed Strategies include hedge fund strategies,

rescue lending funds and distressed energy strategies. The composite gross returns represent a weighted-average composite of the fee-earning funds exceeding $100 million of fair value at each respective

quarter end for each strategy. Composite gross returns exclude the Blackstone Funds that were contributed to GSO as part of Blackstones acquisition of GSO in March 2008. Performing Credit Strategies net

returns were (0.4)% for 1Q'16 and Distressed Strategies net returns were (3.9)% for 1Q'16. The breakdown of Total AUM for 1Q16 is as follows: Distressed Strategies $20.7 billion (34% Incentive Fee,

66% Carried Interest), Performing Credit Strategies $27.3 billion (61% Incentive Fee, 39% Carried Interest), and Long Only $30.7 billion.

$66.0

$75.0

$78.7

$58.3

$66.4

$68.5

$81.3

$92.8

$101.1

$66.1

$76.3

$95.5

Fee-Earning AUM by Segment

(Dollars in Billions)

Total AUM by Segment

$271.7

Total AUM increased 11% year-over-year to $343.7 billion driven by $80.2 billion from gross inflows.

Each segment experienced growth despite $48.2 billion of capital returned to investors during the year.

Real Estate ended the quarter with $101.1 billion Total AUM, making it Blackstones first segment to surpass

the $100

billion threshold.

Fee-Earning AUM of $244.5 billion was up 9% year-over-year as $59.8 billion of gross inflows significantly

outpaced $35.7 billion of realizations and outflows.

Assets Under Management

$53.4

$59.3

$62.1

$55.6

$64.1

$64.8

$53.5

$50.8

$67.3

$41.2

$49.3

$50.2

$310.5

$203.6

$223.5

$116.0

$150.8

$121.4

$25.3

$13.9

$50.4

$44.5

$60.6

$85.6

Additional Capital Detail

Undrawn

(Total

Powder)

recent

fundraises

latest

$257.4

segments.

Consistently

Uninvested

Not Currently

$89 billion 1Q16

Total Dry Powder

$257 billion Performance

$53 billion Not Currently

Earning Management Fees

$225.4

$185.8

$39.0

$31.2

$14.2

$3.11

$4.17

$2.70

$2.42

$2.09

$1.89

$1.67

$2.68

$2.80

corporate

treasury

value,

undrawn

revolver

maintained

ratings.

Balance Sheet Highlights

Balance Sheet Highlights are preliminary, and exclude the consolidated Blackstone funds. Investments include Blackstone investments in Private Equity, Real Estate, Hedge Fund

Solutions,

Credit,

million,

respectively,

million,

amounts

calculated using period end DE Units Outstanding (see page 29, Unit Rollforward).

(Dollars in Millions)

Cash and Cash Equivalents

1,373

Treasury Cash

Management Strategies

Net Accrued Performance

Total Net Value

Bonds (at par)

rated by S&P and Fitch

$1.1 billion

undrawn credit revolver with

May 2019 maturity

$3.3 billion

total cash and

corporate treasury

Total Cash

and Corporate

Cash and Investments

(Per Unit)

$1,483

1Q'14 LTM

$2,424

$2,648

$2,127

$2,027

$1,000

($2.70/unit)

balance

prior.

Net Realized Performance Fees

$2,505

$1,775

Net Accrued Performance Fees

$4,910

$3,212

$3,546

Related to Publics/Pending Exits

$1.8 billion

1Q16 LTM Net Realized

Net Accrued Performance Fees per unit is calculated using period end DE Units Outstanding (see page 29, Unit Rollforward).

(Dollars in Thousands, Except per Unit Data) (Unaudited)

Management and Advisory Fees, Net

616,768

608,906

2,540,860

2,534,643

Realized Carried Interest

1,207,594

230,909

3,324,053

2,228,605

Realized Incentive Fees

29,638

28,419

234,849

192,019

Unrealized Carried Interest

373,840

47,586

1,748,370

(1,921,428)

Unrealized Incentive Fees

62,036

(31,946)

(61,145)

Total Performance Fees

1,673,108

314,493

5,275,326

438,051

187,930

(12,001)

558,639

355,240

18,273

15,038

(365,309)

Total Investment Income (Loss)

206,203

(8,508)

573,677

(10,069)

Interest and Dividend Revenue

21,920

23,075

77,660

96,112

(5,641)

(5,612)

2,512,358

932,354

8,470,418

3,066,548

Compensation and Benefits

559,559

346,003

1,943,076

1,512,635

292,248

58,504

958,493

560,057

12,227

14,124

98,691

87,842

74,380

30,001

412,687

(357,075)

24,961

(17,846)

(24,003)

Total Compensation and Benefits

963,375

452,080

3,395,101

1,779,456

General, Administrative and Other

130,973

123,045

544,882

568,175

Interest Expense

31,370

37,356

128,227

150,508

Fund Expenses

16,850

42,363

67,878

Total Expenses

1,142,568

617,710

4,110,573

2,566,017

Other Income

Reversal of Tax Receivable Agreement Liability

82,707

Net Gains from Fund Investment Activities

93,555

19,142

381,254

101,951

Income Before Provision for Taxes

1,463,345

333,786

4,741,099

685,189

99,344

18,866

336,420

109,920

1,364,001

314,920

4,404,679

575,269

Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities

(6,401)

36,529

(2,783)

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

81,796

40,086

372,905

178,190

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

645,230

131,202

2,046,825

169,488

Net Income Attributable to The Blackstone Group L.P. ("BX")

Net Income per Common Unit, Basic

Net Income per Common Unit, Diluted

Appendix

Total Segments

Base Management Fees

516,397

516,492

564,287

599,407

586,703

2,027,048

2,266,889

84,238

76,998

146,153

435,120

224,374

Transaction and Other Fees, Net

37,073

11,728

32,403

72,481

46,118

223,600

162,730

Management Fee Offsets

(17,945)

(18,434)

(34,176)

(22,939)

(20,101)

(88,072)

(95,650)

Total Management and Advisory Fees, Net

619,763

586,784

708,667

649,691

613,201

2,597,696

2,558,343

937,483

435,189

625,610

3,324,567

2,229,191

29,670

47,819

34,785

82,472

28,450

237,578

193,526

373,852

(441,949)

(1,055,977)

(471,222)

47,606

1,752,525

(1,921,542)

62,620

26,311

(53,346)

(42,834)

(28,071)

(62,769)

569,664

(639,349)

194,026

107,792

136,497

87,526

86,993

(10,101)

539,300

300,915

81,849

(125,723)

(223,657)

(98,428)

(16,549)

(464,357)

10,774

(136,131)

(11,435)

31,026

35,459

34,665

(4,872)

10,240

(6,248)

Total Revenues

1,202,221

(32,195)

877,187

329,838

289,352

329,575

240,454

287,403

1,176,804

1,146,784

238,032

97,799

165,721

58,503

560,055

21,837

15,061

36,821

14,123

(50,559)

(228,697)

(107,820)

412,727

(14,642)

(18,940)

733,654

504,793

199,096

316,236

393,478

2,628,869

1,413,603

143,282

168,401

157,565

155,109

148,526

557,290

629,601

673,194

356,661

471,345

1,631,783

529,027

(388,856)

405,842

387,445

5,351,035

933,458

Economic Net Income (Loss)

508,440

(415,926)

435,691

178,441

265,667

310,879

1,033,920

691,534

878,027

Total Assets Under Management

332,723,546

333,925,521

336,384,575

Fee-Earning Assets Under Management

239,342,214

240,939,356

246,146,372

Weighted Average Fee-Earning AUM

218,241,987

237,576,488

239,786,680

242,942,380

244,891,488

216,244,401

251,213,289

LP Capital Invested

4,765,536

4,814,362

6,145,446

14,779,702

6,515,571

24,666,510

32,255,081

Total Capital Invested

5,052,370

5,048,058

6,507,371

15,747,511

6,693,375

26,620,667

33,996,315

Management Fees, Net

108,383

121,918

128,452

143,887

130,648

425,640

524,905

21,990

20,359

(11,842)

18,382

113,230

24,338

(4,949)

(9,028)

(12,262)

(10,521)

(6,848)

(22,382)

(38,659)

Total Management Fees, Net

126,222

105,891

128,096

152,490

132,720

538,478

519,197

382,978

546,575

214,532

330,902

30,282

1,017,575

1,122,291

566,822

(305,573)

(809,363)

(169,841)

73,875

1,622,585

(1,210,902)

241,002

(594,831)

161,061

44,816

50,258

46,917

47,658

(15,357)

187,000

129,476

31,487

(22,301)

(110,689)

(14,835)

15,440

16,606

(132,385)

27,957

(63,772)

32,823

Interest Income and Dividend Revenue

(1,825)

(1,587)

385,034

(521,917)

360,879

68,106

70,419

39,482

106,502

16,303

94,635

15,427

220,104

232,867

178,120

(25,574)

(141,448)

(21,270)

415,714

(178,996)

288,674

149,034

(54,726)

144,016

104,997

913,268

343,321

62,571

43,812

53,900

211,605

(10,914)

197,916

173,429

(511,003)

162,963

92,026,337

91,490,669

94,280,074

49,537,189

50,560,404

51,451,196

45,051,839

49,925,744

50,268,174

51,185,170

51,240,819

46,107,237

52,093,539

2,374,599

1,800,854

1,535,702

4,508,023

1,865,698

9,968,853

9,710,277

2,517,769

1,949,748

1,677,876

5,270,078

1,974,391

11,443,494

10,872,093

152,348

140,743

175,710

199,774

199,907

621,514

716,134

15,216

21,510

21,390

52,461

35,794

93,262

131,155

(4,866)

(5,428)

(10,147)

(6,399)

(3,595)

(30,085)

(25,569)

162,698

156,825

186,953

245,836

232,106

684,691

821,720

811,249

363,983

169,051

290,450

200,627

2,104,353

1,024,111

11,331

12,248

20,499

Unrealized Carried Interest

(181,019)

(188,608)

(128,854)

(182,061)

(11,522)

202,790

(511,045)

(2,189)

24,498

180,530

46,860

127,734

71,344

85,432

39,821

38,985

12,975

349,082

177,213

37,510

(107,691)

(95,382)

(66,326)

(2,137)

(26,799)

(271,536)

(22,259)

(55,561)

(27,341)

10,259

11,057

12,677

(3,977)

(1,909)

(1,431)

326,432

188,371

361,322

79,484

99,255

94,808

246,496

116,168

52,546

68,827

627,659

280,617

10,455

(98,084)

(23,018)

(24,686)

27,703

42,105

(70,560)

(1,558)

10,400

236,177

145,994

135,836

145,559

177,648

1,005,476

605,037

43,346

42,050

53,636

189,340

177,886

199,195

137,092

10,485

162,127

91,578,634

93,187,556

93,917,824

62,683,857

64,858,622

67,345,357

51,671,739

60,939,868

63,492,663

65,356,567

66,943,268

53,085,887

72,387,238

1,443,163

2,963,609

4,118,952

7,733,638

3,747,181

10,986,073

18,563,380

1,405,603

3,035,837

4,326,151

7,835,881

3,820,460

11,189,295

19,018,329

130,637

130,216

133,592

129,941

130,158

500,234

523,907

(3,839)

130,382

129,608

133,304

131,580

130,701

496,896

525,193

10,516

16,915

37,983

111,200

60,365

(5,394)

47,427

15,855

(29,711)

(41,655)

(2,935)

28,463

(58,446)

40,784

(32,322)

(4,271)

Investment Income (Loss)

(10,375)

(1,757)

(4,745)

(5,645)

(7,111)

(6,411)

(1,539)

(12,291)

(18,209)

(6,879)

(1,680)

(1,607)

(1,388)

175,096

98,173

132,262

45,841

44,408

33,131

15,410

32,650

25,548

(3,041)

15,651

(7,011)

(15,316)

(1,195)

(19,758)

75,225

62,393

33,012

54,837

188,458

184,162

24,147

24,220

82,892

58,067

57,232

92,204

40,106

75,030

67,829,866

68,405,948

69,105,425

65,512,170

65,182,338

65,665,439

62,910,553

65,453,883

65,782,066

65,802,335

65,123,126

59,945,488

65,763,940

133,351

66,427

41,332

315,757

820,309

425,647

139,223

71,132

39,877

329,793

835,106

442,938

125,029

123,615

126,533

125,805

125,990

479,660

501,943

16,274

(7,850)

(3,370)

(11,260)

(7,585)

(9,658)

(31,766)

(31,873)

118,636

122,305

116,562

119,785

117,674

464,168

476,326

13,367

26,925

51,606

202,639

82,789

Realized Incentive Fees

18,431

29,684

28,123

33,158

21,697

114,130

112,662

(11,951)

44,218

(112,366)

(118,721)

(14,779)

(72,850)

(201,648)

(26,419)

(9,193)

(54,345)

(28,821)

107,348

(59,056)

(90,498)

(2,974)

(10,177)

(15,728)

(17,561)

(40,706)

(8,442)

(15,237)

(1,364)

241,108

55,044

22,724

47,124

51,324

41,864

15,362

28,950

110,730

46,571

12,455

13,659

15,598

10,127

59,689

(5,656)

21,497

(61,190)

(61,651)

(6,998)

(45,092)

(108,342)

(12,846)

(4,421)

(24,905)

(14,645)

Total Compensation and Benefits

65,627

98,575

19,897

(6,351)

55,996

287,747

168,117

23,539

24,898

23,353

122,114

44,795

17,002

118,994

10,249

81,288,709

80,841,348

79,081,252

61,608,998

60,337,992

61,684,380

58,607,856

61,256,993

60,243,777

60,598,308

61,584,275

57,105,789

60,968,572

814,423

47,768

424,365

2,496,709

586,935

2,891,275

3,555,777

989,775

432,212

2,601,675

568,731

3,152,772

3,662,955

Financial Advisory

n October 1, 2015, Blackstone spun

off its Financial Advisory businesses, which did not include Blackstone's capital markets ser

vices business. The

results of Blackstones

capital markets services business have been reclassified from the Financial Advisory segment to the Private Equity segment. All prior periods have been recast to reflect this

reclassification.

81,809

72,155

143,606

413,130

215,761

Total Advisory and Transaction Fees

81,825

143,752

413,463

215,907

(1,521)

(1,477)

(2,159)

10,736

85,357

74,551

148,134

425,837

222,685

67,951

48,797

64,169

233,920

112,966

21,222

18,446

22,658

87,555

41,104

89,173

67,243

86,827

321,475

154,070

(3,816)

61,307

104,362

68,615

Unitholder

A detailed

description

policy

definition

Definitions

Policy.

before

Certain

Payables

represents

Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Per Unit calculations are based on end of period Total Common Units Outstanding

29, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. For the periods presented, Net Cash Available for Distribution per Common Unit equals the Actual Distribution per

Retained

withheld

pro-rata

Partnership

unitholders.

unitholders

$247.8

Generated

compared

Declared

Add: Other Payables Attributable

to Common Unitholders

26,918

194,856

DE before Certain Payables

1,247,495

904,945

4,020,375

3,018,366

Percent to Common Unitholders

DE before Certain Payables Attributable

663,608

554,120

370,902

487,075

210,286

2,135,330

1,622,383

Less: Other Payables Attributable

(7,288)

(26,918)

(194,856)

DE Attributable to Common Unitholders

656,320

460,157

1,940,474

1,595,465

Less: Retained Capital per Common Unit

(0.16)

(0.14)

(0.09)

(0.11)

(0.05)

(0.50)

(0.39)

Actual Distribution per Common Unit

Record Date

May 2, 2016

Payable Date

May 9, 2016

1Q16 Total AUM Rollforward

1Q16 LTM Total AUM Rollforward

Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases

in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign

exchange rate fluctuations.

Inflows:

Fifth

European

opportunistic fund

billion); third mezzanine debt fund ($1.7 billion);

BREP co

investment ($842 million);

U.S. ($555 million).

Realizations:

BREP Global and

pportunistic platforms ($

1.9 billion); BREP

($1.1 billion) and BREDS ($

Market Activity:

Carrying value increases of 1.8% and 4.4% within the opportunistic and core+ platforms, respectively.

Individual investor and specialized solutions ($1.5 billion); customized solutions

($950

million); additional close of BAAMs third

seeding vehicle ($400 million); commingled products ($362 million).

BAAMs Principal Solutions Composite down 2.9% gross (3.1% net) during the quarter.

($528

million); BDCs

($507

long only products ($462

Outflows:

Primarily

driven by investor liquidity needs, shift in investor sentiment on credit and de

leveraging of the BDC funds.

Strategic Partners ($1.8 billion); BCP VII ($899 million); Core Private Equity ($670 million); Tactical Opportunities ($327 m

reduced by allocations of multi-strategy capital to Blackstone funds ($671 million).

BCP V ($1.4 billion); Strategic Partners ($352 million).

93,918

336,385

17,090

(1,632)

(1,385)

(3,545)

(2,119)

(3,451)

(6,606)

Net Inflows (Outflows)

(2,028)

101,108

QoQ Increase (Decrease)

92,786

66,379

74,960

30,153

20,170

11,138

18,724

80,185

(5,916)

(5,673)

(12,673)

(12,299)

(15,312)

(7,246)

(35,536)

17,212

31,976

(2,446)

(2,108)

YoY Increase

1Q16 Fee-Earning AUM Rollforward

1Q16 LTM Fee-Earning AUM Rollforward

BREP co-investment ($710 million); BREDS ($560 million).

$1.4 billion across BREP platform

including

investment; $658 million in BREDS.

Individual investor and specialized solutions ($1.5 billion); customized solutions

million); commingled products ($362 million).

Driven by investors liquidity needs and certain strategic shifts in their programs.

BDCs ($507 million); CLOs

Primarily driven by investor liquidity needs, shift in investor sentiment on credit and de

Strategic Partners ($584 million); Tactical Opportunities ($288 million);

funds ($368 million).

BCP V ($982 million); Strategic Partners ($214 million).

(1,603)

(1,107)

(3,117)

(1,288)

(2,120)

(4,277)

(1,100)

(1,937)

62,095

244,453

59,272

223,512

27,846

15,668

59,755

(4,170)

(5,766)

(5,035)

(15,752)

(5,148)

(8,139)

(6,027)

(19,955)

15,537

24,048

(2,324)

(1,782)

(3,107)

Net Accrued Performance Fees at 1Q16

of 1Q15 Net Accrued Performance

Fees realized in 1Q16 LTM

(Dollars in Millions, Except per Unit Data)

1Q'16 Per Unit

QoQ Change

BCP IV Carried Interest

BCP V Carried Interest

BCP VI Carried Interest

BEP Carried Interest

Tactical Opportunities Carried Interest

BTAS Carried Interest

Strategic Partners Carried Interest

Other Carried Interest

Total Private Equity

Real Estate

BREP IV Carried Interest

BREP V Carried Interest

BREP VI Carried Interest

BREP VII Carried Interest

BREP VIII Carried Interest

BREP Europe III Carried Interest

BREP Europe IV Carried Interest

BREP Asia Carried Interest

BPP Carried Interest

BPP Incentive Fees

BREDS Carried Interest

BREDS Incentive Fees

Asia Platform Incentive Fees

Total Real Estate

Total Hedge Fund Solutions

Total Credit

Total Blackstone

Memo: Net Realized Performance Fees

Net Accrued Performance Fees are presented net of performance fee compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized

Performance Fees are included in DE. Net Realized Performance Fees represents Performance Fees realized, but not yet distributed as of the reporting date and included in the Net

Accrued Performance Fee balance. When these fees are received, the receivable is reduced without further impacting DE. Per Unit calculations are based on end of period DE Units

Outstanding (see page 29, Unit Rollforward).

Investment Records as of March 31, 2016

Continued...

Committed

Unrealized Investments

Realized Investments

Total Investments

Net IRRs (d)

(Dollars in Thousands, Except Where Noted)

Capital (b)

MOIC (c)

% Public

BCP I (Oct 1987 / Oct 1993)

859,081

1,741,738

BCP II (Oct 1993 / Aug 1997)

1,361,100

3,256,819

BCP III (Aug 1997 / Nov 2002)

3,967,422

9,184,688

BCOM (Jun 2000 / Jun 2006)

2,137,330

126,093

116,658

2,851,514

2,968,172

BCP IV (Nov 2002 / Dec 2005)

6,773,182

219,136

2,160,727

18,951,775

21,112,502

BCP V (Dec 2005 / Jan 2011)

21,025,507

1,261,736

10,330,979

27,296,433

37,627,412

BCP VI (Jan 2011 / Jan 2017)

15,188,733

2,797,578

14,976,100

2,044,675

17,020,775

BEP (Aug 2011 / Feb 2015)

2,439,112

183,562

2,713,693

539,548

3,253,241

BEP II (Feb 2015 / Feb 2021)

4,951,351

4,875,450

22,908

BCP VII (TBD)

18,898,630

Total Corporate Private Equity

77,601,448

28,362,185

30,321,065

65,867,190

96,188,255

13,287,442

6,765,473

7,328,776

1,296,745

8,625,521

Strategic Partners I-V and Co-Investment

12,156,390

2,356,537

3,991,432

13,110,144

17,101,576

Strategic Partners VI LBO, RE and SMA (e)

6,737,766

1,653,078

3,567,570

432,994

4,000,564

Strategic Partners VII

1,511,972

BCEP (f)

669,500

Other Funds and Co-Investment (g)

2,343,637

620,141

1,409,258

228,347

1,637,605

114,308,155

41,938,886

46,618,101

80,935,420

127,553,521

Pre-BREP

140,714

345,190

BREP I (Sep 1994 / Oct 1996)

380,708

1,327,708

BREP II (Oct 1996 / Mar 1999)

1,198,339

2,531,613

BREP III (Apr 1999 / Apr 2003)

1,522,708

3,336,402

BREP IV (Apr 2003 / Dec 2005)

2,198,694

653,847

3,900,697

4,554,544

BREP V (Dec 2005 / Feb 2007)

5,539,418

3,938,344

8,899,153

12,837,497

BREP VI (Feb 2007 / Aug 2011)

11,059,523

579,112

7,608,688

17,951,460

25,560,148

BREP VII (Aug 2011 /Apr 2015)

13,491,598

2,461,897

15,743,502

8,584,025

24,327,527

BREP VIII (Apr 2015 / Oct 2020)

16,145,129

10,754,125

5,921,200

5,925,993

Total Global BREP

51,676,831

13,795,134

33,865,581

46,881,041

80,746,622

BREP Int'l (Jan 2001 / Sep 2005)

824,172

1,364,490

BREP Int'l II (Sep 2005 / Jun 2008)

1,629,748

530,198

1,714,052

2,244,250

BREP Europe III (Jun 2008 / Sep 2013)

3,205,140

466,916

3,201,449

2,635,024

5,836,473

BREP Europe IV (Sep 2013 / Mar 2019)

6,696,404

2,110,961

6,334,310

573,041

6,907,351

BREP Europe V (TBD)

4,669,823

Total Euro BREP

17,025,287

7,247,700

10,065,957

6,286,607

16,352,564

BREP Co-Investment (h)

6,819,065

5,125,104

7,387,601

12,512,705

BREP Asia (Jun 2013 / Dec 2017)

5,081,069

2,728,072

3,143,960

185,124

3,329,084

Total BREP

84,884,181

24,691,363

54,805,711

62,823,968

117,629,679

BPP (i)

10,909,794

2,752,215

9,485,250

BREDS (j)

9,789,251

5,374,702

2,481,353

5,681,724

8,163,077

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

Not meaningful.

Not applicable.

Preliminary.

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.

Multiple of Invested Capital (MOIC) represents carrying value, before management fees, expenses and Carried Interest, divided by invested capital.

Internal

(IRR)

annualized

inception

proceeds

unrealized value, as applicable, after management fees, expenses and Carried Interest.

Realizations are treated as return of capital until fully recovered and therefore unrealized and realized MOICs are not meaningful in the early life of the

BCEP, or Blackstone Core Equity Partners, is a core private equity fund which invests with a more modest risk profile and longer hold period.

Returns for Other Funds and Co-Investment are not meaningful as these funds have limited transaction activity.

BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-

investments realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest.

BPP, or Blackstone Property Partners, are the core+ real estate funds which invest with a more modest risk profile and lower leverage.

Excludes Capital Trust drawdown funds.

BSCH is a permanent capital vehicle focused on acquiring strategic minority positions in alternative asset managers.

The Total Investments MOIC for Mezzanine I, Mezzanine II, Rescue Lending I, Rescue Lending II Funds, Energy Select Opportunities Fund and European

Senior Debt Fund, excluding recycled capital during the investment period was 2.0x, 1.4x, 1.6x, 1.0x, 1.1x and n/m, respectively. Funds presented

represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the six credit drawdown funds presented.

BSCH (Dec 2013 / Jun 2020) (k)

3,300,600

2,755,702

549,508

68,755

618,263

BSCH Co-Investment

75,500

31,237

44,481

45,735

3,376,100

2,786,939

593,989

70,009

663,998

Credit (l)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

99,280

444,786

4,406,799

4,851,585

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

2,005,610

2,746,265

1,896,457

4,642,722

Rescue Lending I (Sep 2009 / May 2013)

3,253,143

553,745

1,465,694

4,197,595

5,663,289

Rescue Lending II (Jun 2013 / Jun 2018)

5,125,000

2,561,654

2,701,252

88,846

2,790,098

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,866

2,469,556

419,038

European Senior Debt (Feb 2015 / Feb 2018)

1,964,689

3,369,434

523,149

142,288

665,437

19,621,419

11,529,777

8,372,349

10,747,165

19,119,514

Reconciliation of GAAP to Non-GAAP Measures

Notes on page 26.

Net Income (Loss) Attributable to The Blackstone Group L.P.

134,168

(254,697)

200,870

Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings

134,870

(247,318)

150,734

66,716

30,671

40,717

13,780

(12,520)

349,534

(483,864)

394,679

43,251

46,230

Income (Loss) Before Provision for Taxes

392,785

(482,291)

440,909

Transaction-Related Charges

231,862

192,018

80,962

(15,279)

64,136

911,220

321,837

Amortization of Intangibles

25,899

24,720

30,624

23,287

23,208

108,150

101,839

(Income) Associated with Non-Controlling Interests of Consolidated Entities

(89,323)

(80,496)

(18,151)

(43,075)

(33,685)

(409,434)

(175,407)

(9,719)

(20,587)

(27,070)

29,849

(16,794)

(197,919)

(34,602)

(29,849)

Performance Fee Adjustment

(1,673,736)

(569,664)

(194,026)

(314,065)

(5,286,599)

(438,406)

Investment (Income) Loss Adjustment

(189,641)

(10,774)

(544,802)

Net Interest Loss

14,411

11,846

13,351

36,877

49,130

Performance Fee Compensation and Benefits Adjustment

403,816

215,441

(130,479)

75,782

106,075

1,452,065

266,819

932,789

725,433

357,114

505,540

186,733

2,504,961

1,774,820

Realized Investment Income (Loss)

Net Interest (Loss)

(8,402)

(14,411)

(9,522)

(11,846)

(13,351)

(36,877)

(49,130)

Taxes and Related Payables

Including Payable Under Tax Receivable Agreement

(16,994)

(25,819)

(266,728)

(90,270)

Equity-Based Compensation

44,398

28,547

17,819

12,280

22,024

76,287

80,670

38,853

45,437

44,981

46,511

48,432

141,310

185,361

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

Depreciation and Amortization

26,578

Adjusted EBITDA

1,302,981

1,106,659

770,304

957,209

459,485

4,262,411

3,293,657

Note:

See page 30, Definitions and Distribution Policy.

This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which

include principally equity-based compensation charges associated with Blackstones initial public offering and long-term retention

programs outside of annual deferred compensation and other corporate actions.

This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which

are associated with Blackstones initial public offering and other corporate actions.

This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes the amount of (Income) Loss Associated with Non-

Controlling Interests of Consolidated Entities and includes the amount of Management Fee Revenues associated with Consolidated

CLO Entities.

Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes.

This adjustment removes from EI the total segment amount of Performance Fees.

This adjustment removes from EI the total segment amount of Investment Income (Loss).

This adjustment represents Interest Income and Dividend Revenue less Interest Expense.

This adjustment removes from expenses the compensation and benefit amounts related to Blackstones profit sharing plans related

to Performance Fees.

Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstones profit

sharing plans related thereto. Equals the sum of Net Realized Incentive Fees and Net Realized Carried Interest.

Represents the adjustment for Blackstones Realized Investment Income (Loss).

Taxes and Related Payables Including Payable Under Tax Receivable Agreement represent the current tax provision (benefit)

calculated on Income (Loss) Before Provision (Benefit) for Taxes and the Payable Under Tax Receivable Agreement.

Represents equity-based award expense included in EI, which excludes all transaction-related equity-based charges.

See page 28, Walkdown of Financial Metrics

Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on

13, Total Segments. 1Q16 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 1Q16 DE per Unit is based on DE attributable to Common Unit Holders (see page 19,

Unitholder Distribution) and end of period Total Common Units Outstanding; and 1Q16 ENI per Unit is based on Weighted-Average ENI Adjusted Units. 1Q16 LTM per Unit represents the sum of

the last four quarters. See page 29, Unit Rollforward.

Results

Other Revenue

(287,403)

(1,146,784)

Non-Interest Operating Expenses

(100,094)

(444,240)

Net Realized Incentive Fees

14,327

105,684

172,406

1,669,136

Net Unrealized Incentive Fees

(38,766)

Net Unrealized Carried Interest

17,605

(1,564,467)

Unrealized Investment (Loss)

Add Back: Related Payables

55,668

Less: Equity-Based Compensation

(22,024)

(80,670)

Unless otherwise noted, all amounts are the respective captions from the Total Segment information.

Represents equity-based award expense included in Economic Income, which excludes all transaction-related equity-based charges.

See page 25, Reconciliation of GAAP to Non-GAAP Measures for this adjustment.

Represents tax-related payables including the Payable Under Tax Receivable Agreement, which is a component of Taxes and Related Payables.

Less: Interest Expense

(48,432)

(185,361)

Less: Realized Incentive Fee Compensation

(14,123)

(87,842)

Less: Realized Carried Interest Compensation

(58,503)

(560,055)

Less: Unrealized Incentive Fee Compensation

(3,448)

Less: Unrealized Carried Interest Compensation

(30,001)

Total GAAP Weighted-Average Common Units Outstanding - Basic

625,276,969

631,881,205

638,832,799

641,134,086

644,897,849

Adjustments:

Weighted-Average Unvested Deferred Restricted Common Units

5,955,072

2,311,444

1,794,046

1,629,702

Weighted-Average Blackstone Holdings Partnership Units

547,495,655

548,042,780

Total GAAP Weighted-Average Units Outstanding - Diluted

631,232,041

634,192,649

1,190,423,787

1,194,570,331

1,913,028

548,837,150

555,641,388

550,983,910

Weighted-Average Economic Net Income Adjusted Units

1,180,069,191

1,189,834,037

1,191,729,737

Economic Net Income Adjusted Units, End of Period

1,192,529,251

1,190,864,027

1,191,328,573

1,190,361,741

1,194,227,352

625,985,058

630,414,455

635,440,608

637,410,828

643,789,108

550,783,119

545,861,003

549,317,005

546,844,892

543,969,293

Distributable Earnings Units Outstanding

1,176,768,177

1,176,275,458

1,184,757,613

1,184,255,720

1,187,758,401

Common Unitholders receive tax benefits from deductions taken by Blackstones corporate tax paying subsidiaries and bear responsibility for the deduction from Distributable Earnings of

the Payable Under Tax Receivable Agreement and certain other tax-related payables. Distributable Earnings Units Outstanding excludes units which are not entitled to distributions.

Blackstone discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted

accounting principles in the United States of America (non-GAAP) in this presentation:

Blackstone uses Economic Income, or EI, as a key measure of value creation, a benchmark of its performance and in making resource deployment and

compensation decisions across its four segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges

arise from Blackstones initial public offering (IPO) and long-term retention programs outside of annual deferred compensation and other corporate actions,

including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration

associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages.

Economic Net Income, or ENI, represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on Income

(Loss) Before Provision for Taxes.

Blackstone uses Fee Related Earnings, or FRE, which is derived from EI, as a measure to highlight earnings from operations excluding: (a) the income related to

performance fees and related carry plan costs and (b) income earned from Blackstones investments in the Blackstone Funds. Blackstone uses FRE as a measure to

assess whether recurring revenue from its businesses is sufficient to adequately cover all of its operating expenses and generate profits. FRE equals contractual fee

revenues less (a) compensation expenses (which includes amortization of non-IPO and non-acquisition-related equity-based awards, but excludes amortization of

IPO and acquisition-related equity-based awards, Carried Interest and incentive fee compensation), and (b) non-interest operating expenses.

Distributable Earnings, or DE, which is derived from Blackstones segment reported results, is a supplemental measure to assess performance and amounts

available for distributions to Blackstone unitholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings partnerships. DE

is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a component of ENI, is the

sum across all segments of: (a) Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c) Other Revenue, (d) Realized Performance Fees, and

(e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized Performance Fee Compensation, (c) Other

Operating Expenses, and (d) Taxes and Related Payables Under the Tax Receivable Agreement. DE is reconciled to Blackstones Consolidated Statement of

Operations.

Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or Adjusted EBITDA, is a supplemental non-GAAP measure derived

from segment reported results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents DE plus the addition of (a) Interest

Expense, (b) Taxes and Related Payables Including Payable Under Tax Receivable Agreement, and (c) Depreciation and Amortization.

Distribution Policy. Blackstones intention is to distribute quarterly to common unitholders approximately 85% of The Blackstone Group L.P.s share of Distributable

Earnings, subject to adjustment by amounts determined by Blackstones general partner to be necessary or appropriate to provide for the conduct of its business, to

make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future cash

requirements such as tax-related payments, clawback obligations and distributions to unitholders for any ensuing quarter. The amount to be distributed could also be

adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the declaration and payment of any distributions are at the sole discretion of

Blackstones general partner and may change its distribution policy at any time, including, without limitation, to eliminate such distributions entirely.

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934 which reflect Blackstones current views with respect to, among other things,

Blackstones operations and financial performance. You can identify these forward-looking statements by the use of words such as

outlook, indicator, believes, expects, potential, continues, may, will, should, seeks, approximately, predicts,

intends, plans, estimates, anticipates or the negative version of these words or other comparable words. Such forward-looking

statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual

not limited to those described under the section entitled Risk Factors in its Annual Report on Form 10-K for the fiscal year ended

December 31, 2015, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange

Commission, which are accessible on the SECs website at www.sec.gov. These factors should not be construed as exhaustive and

should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings. Blackstone

undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future

This presentation does not constitute an offer of any Blackstone Fund.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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