# Blackstone (BX) 10-Q SEC filing - Q2 FY2026
- Filed: Aug 7, 2026, 4:01 PM EDT
- Fiscal quarter: Q2 FY2026
- Calendar quarter: Q2 2026
- Accession: 0001193125-26-340208
- OpenCapital page: https://www.opencapital.sh/filings/0001193125-26-340208
- Markdown URL: https://www.opencapital.sh/filings/0001193125-26-340208.md
- Official SEC filing index: https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/0001193125-26-340208-index.htm
## Filing documents
- [10-Q (d158269d10q.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269d10q.htm)
- [EX-10.1 (d158269dex101.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex101.htm)
- [EX-10.2 (d158269dex102.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex102.htm)
- [EX-10.3 (d158269dex103.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex103.htm)
- [EX-31.1 (d158269dex311.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex311.htm)
- [EX-31.2 (d158269dex312.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex312.htm)
- [EX-32.1 (d158269dex321.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex321.htm)
- [EX-32.2 (d158269dex322.htm)](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex322.htm)
---
## 10-Q
SEC source: [d158269d10q.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269d10q.htm)
#####
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
Commission File Number:
001-33551
Blackstone Inc.
(Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation or organization) 20-8875684 (I.R.S. Employer Identification No.)
345 Park Avenue
New York, New York 10154
(Address of principal executive offices)(Zip Code)
(212)
583-5000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock BX New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes
☒
No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files
).
Yes
☒
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act). Yes
☐
No
☒
As of July 31, 2026, there were 750,625,114 shares of common stock of the registrant outstanding.
---
#####
Table of Contents
| | | Page | |
| --- | --- | --- | --- |
| Part I. |
[Financial Information](#fin158269_1) | | |
| Item 1. | [Financial Statements](#fin158269_2) | | 5 |
| | Unaudited Condensed Consolidated Financial Statements: | | |
| |
[Condensed Consolidated Statements of Financial Condition as of June 30, 2026 and December 31, 2025](#fin158269_3) | | 5 |
| |
[Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2026 and 2025](#fin158269_4) | | 7 |
| |
[Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2026 and 2025](#fin158269_5) | | 8 |
| |
[Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2026 and 2025](#fin158269_6) | | 9 |
| |
[Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025](#fin158269_7) | | 13 |
| |
[Notes to Condensed Consolidated Financial Statements](#fin158269_8) | | 15 |
| Item 1A. | [Unaudited Supplemental Presentation of Statements of Financial Condition](#fin158269_9) | | 67 |
| Item 2. | [Management’s Discussion and Analysis of Financial Condition and Results of Operations](#fin158269_10) | | 69 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#fin158269_11) | | 144 |
| Item 4. | [Controls and Procedures](#fin158269_12) | | 144 |
| Part II. |
[Other Information](#fin158269_13) | | |
| Item 1. | [Legal Proceedings](#fin158269_14) | | 145 |
| Item 1A. | [Risk Factors](#fin158269_15) | | 145 |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#fin158269_16) | | 145 |
| Item 3. | [Defaults Upon Senior Securities](#fin158269_17) | | 146 |
| Item 4. | [Mine Safety Disclosures](#fin158269_18) | | 146 |
| Item 5. | [Other Information](#fin158269_19) | | 146 |
| Item 6. | [Exhibits](#fin158269_20) | | 147 |
| [Signatures](#fin158269_21) | | | 148 |
1
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#####
Forward-Looking Statements
This report may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. 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,” “scheduled,” “estimates,” “anticipates,” “opportunity,” “leads,” “forecast,” “possible” 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. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in our subsequent filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s 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 report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
#### Website and Social Media Disclosure
We may use our website (www.blackstone.com), Facebook page (www.facebook.com/blackstone), X (Twitter) (www.x.com/blackstone), LinkedIn (www.linkedin.com/company/blackstonegroup), Instagram (www.instagram.com/blackstone), SoundCloud (www.soundcloud.com/blackstone-300250613), Pandora (https://www.pandora.com/artist/blackstone/ARvlPz9Plblrlmg), PodBean (https://blackstone.podbean.com), Spotify (https://spoti.fi/2LJ1tHG and https://open.spotify.com/artist/52Eom8vQxM8Lk75ZZlf2hJ), YouTube (www.youtube.com/user/blackstonegroup) and Apple Podcast (https://apple.co/31Pe1Gg) accounts as channels of distribution of company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone when you enroll your email address by visiting the “Contact Us/E-mail Alerts” section of our website at http://ir.blackstone.com. The contents of our website, any alerts and social media channels are not, however, a part of this report.
In this report, references to “Blackstone,” the “Company,” “we,” “us” or “our” refer to Blackstone Inc. and its consolidated subsidiaries.
“Series I Preferred Stockholder” refers to Blackstone Partners L.L.C., the holder of the sole outstanding share of our Series I preferred stock.
“Series II Preferred Stockholder” refers to Blackstone Group Management L.L.C., the holder of the sole outstanding share of our Series II preferred stock.
“Blackstone Holdings,” “Blackstone Holdings Partnerships” or “Holdings Partnerships” refer to Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P., collectively.
2
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#####
“Blackstone Funds,” “our funds” and “our investment funds” refer to the funds and other vehicles that are managed by Blackstone. “Our carry funds” refers to funds managed by Blackstone that have commitment-based multi-year drawdown structures that pay carry on the realization of an investment.
“Our hedge funds” refers to our funds of hedge funds, hedge funds, certain of our real estate debt investment funds and certain other credit-focused funds which are managed by Blackstone.
We refer to our separately managed accounts as “SMAs.”
“Total Assets Under Management” refers to the invested and available capital in Blackstone-managed or advised vehicles (including, without limitation, investment funds and SMAs). The Total Assets Under Management attributable to an individual vehicle is dependent on the structure and investment strategy of such vehicle and accordingly, will vary from vehicle to vehicle. Total Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable:
(a)
a vehicle’s invested capital at fair value which, as applicable, is measured as (1) total investments measured at fair value, or gross asset values, each of which may include the fair value of investments purchased with leverage under certain credit facilities, (2) net asset value, or (3) amount of debt and equity outstanding or aggregate par amount of assets, including principal cash for collateralized loan obligation vehicles (“CLOs”), and
(b)
a vehicle’s available capital, if any, which represents (1) uncalled commitments made by investors and (2) available borrowing capacity under certain credit facilities.
Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, perpetual capital vehicles, co-investment vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Total Assets Under Management are reported in the segment where the assets are managed.
Our measurement of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and our personnel. Our calculation of Total 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. Our definition of Total Assets Under Management differs from the manner in which affiliated investment advisors report regulatory assets under management and may differ from the definition set forth in the agreements governing the vehicles we manage or advise.
“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees and/or performance revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
3
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#####
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Fee-Earning Assets Under Management are reported in the segment where the Total Assets Under Management are reported to the extent fee-paying to Blackstone.
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees, Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only performance revenues. Our calculation of 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. Our definition of Fee-Earning Assets Under Management may differ from the definition set forth in the agreements governing the vehicles that we manage or advise.
“Perpetual Capital” refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows or where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.
Commitment-based drawdown structured funds generally do not permit investors to redeem their interests at their election. Certain of our open-ended vehicles generally 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, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Investment advisory agreements related to certain SMAs in our Credit & Insurance and Multi-Asset Investing segments, excluding SMAs in our insurance platform, may generally be terminated by an investor on 15 to 95 days’ notice. SMAs 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.
This report does not constitute an offer of any Blackstone Fund.
4
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#####
Part I. Financial Information
## Item 1. Financial Statements
**Blackstone Inc.**
### Condensed Consolidated Statements of Financial Condition (Unaudited)
_(Dollars in Thousands, Except Share Data)_
| Line item | June 30,2026 | December 31,2025 |
| --- | --- | --- |
| Assets | | |
| Cash and Cash Equivalents | $2,507,073 | $2,631,241 |
| Cash Held by Blackstone Funds and Other | 266,230 | 223,441 |
| Investments | 34,587,729 | 32,212,111 |
| Accounts Receivable | 692,055 | 291,758 |
| Due from Affiliates | 6,218,066 | 6,357,462 |
| Intangible Assets, Net | 113,288 | 131,359 |
| Goodwill | 1,890,202 | 1,890,202 |
| Other Assets | 996,506 | 1,157,719 |
| Right-of-Use Assets | 743,127 | 757,459 |
| Deferred Tax Assets | 1,877,944 | 2,056,223 |
| Total Assets | $49,892,220 | $47,708,975 |
| Liabilities and Equity | | |
| Loans Payable | $13,194,730 | $12,445,144 |
| Due to Affiliates | 3,484,356 | 3,224,432 |
| Accrued Compensation and Benefits | 6,844,156 | 6,411,389 |
| Operating Lease Liabilities | 832,586 | 861,021 |
| Accounts Payable, Accrued Expenses and Other Liabilities | 3,103,164 | 2,885,817 |
| Total Liabilities | 27,458,992 | 25,827,803 |
| Commitments and Contingencies | | |
| Redeemable Non-Controlling Interests in Consolidated Entities | 1,371,083 | 1,380,503 |
| Equity | | |
| Stockholders’ Equity of Blackstone Inc. | | |
| Common Stock, $0.00001 par value, 90 billion shares authorized, (752,601,287 shares issued and outstanding as of June 30, 2026; 748,688,068 shares issued and outstanding as of December 31, 2025) | 7 | 7 |
| Series I Preferred Stock, $0.00001 par value, 999,999,000 shares authorized, 1 share issued and outstanding as of June 30, 2026 and December 31, 2025) | — | — |
| Series II Preferred Stock, $0.00001 par value, 1,000 shares authorized, 1 share issued and outstanding as of June 30, 2026 and December 31, 2025) | — | — |
| Additional Paid-in-Capital | 9,051,771 | 8,479,886 |
| Retained Earnings (Deficit) | (18,646) | 191,641 |
| Accumulated Other Comprehensive Loss | (18,589) | (6,008) |
| Total Stockholders’ Equity of Blackstone Inc. | 9,014,543 | 8,665,526 |
| Non-Controlling Interests in Consolidated Entities | 7,104,291 | 7,224,211 |
| Non-Controlling Interests in Blackstone Holdings | 4,943,311 | 4,610,932 |
| Total Equity | 21,062,145 | 20,500,669 |
| Total Liabilities and Equity | $49,892,220 | $47,708,975 |
continued...
See notes to condensed consolidated financial statements.
5
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Blackstone Inc.
Condensed Consolidated Statements of Financial Condition (Unaudited)
(Dollars in Thousands)
The following presents the asset and liability portion of the consolidated balances presented in the Condensed Consolidated Statements of Financial Condition attributable to consolidated Blackstone funds which are variable interest entities. The following assets may only be used to settle obligations of these consolidated Blackstone funds and these liabilities are only the obligations of these consolidated Blackstone funds and they do not have recourse to the general credit of Blackstone.
| Line item | June 30, 2026 | December 31, 2025 |
| --- | --- | --- |
| Assets | | |
| Cash Held by Blackstone Funds and Other | $266,230 | $223,441 |
| Investments | 5,233,815 | 5,180,879 |
| Accounts Receivable | 2,277 | 16,388 |
| Due from Affiliates | 335,471 | 366,388 |
| Other Assets | 4,366 | 14,705 |
| Total Assets | $5,842,159 | $5,801,801 |
| Liabilities | | |
| Loans Payable | $123,896 | $126,421 |
| Due to Affiliates | 148,854 | 181,587 |
| Accounts Payable, Accrued Expenses and Other Liabilities | 66,181 | 58,996 |
| Total Liabilities | $338,931 | $367,004 |
See notes to condensed consolidated financial statements.
6
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**Blackstone Inc.**
### Condensed Consolidated Statements of Operations (Unaudited)
_(Dollars in Thousands, Except Share and Per Share Data)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Revenues | | | | |
| Management and Advisory Fees, Net | $2,266,006 | $2,035,495 | $4,414,626 | $3,939,812 |
| Incentive Fees | 159,080 | 195,414 | 324,499 | 387,239 |
| Investment Income | | | | |
| Performance Allocations | | | | |
| Realized | 1,365,175 | 829,820 | 2,468,348 | 1,391,870 |
| Unrealized | 587,140 | 313,283 | 870,592 | 576,484 |
| Principal Investments | | | | |
| Realized | 105,585 | 97,171 | 248,605 | 282,713 |
| Unrealized | 414,821 | 365,391 | 29,819 | 524,104 |
| Total Investment Income | 2,472,721 | 1,605,665 | 3,617,364 | 2,775,171 |
| Interest and Dividend Revenue | 134,224 | 100,389 | 242,164 | 197,809 |
| Other | 11,947 | (225,063) | 62,920 | (298,673) |
| Total Revenues | 5,043,978 | 3,711,900 | 8,661,573 | 7,001,358 |
| Expenses | | | | |
| Compensation and Benefits | | | | |
| Compensation | 963,026 | 870,358 | 2,129,923 | 1,899,720 |
| Incentive Fee Compensation | 49,716 | 67,363 | 104,084 | 124,392 |
| Performance Allocations Compensation | | | | |
| Realized | 565,264 | 331,191 | 998,713 | 573,081 |
| Unrealized | 236,129 | 152,618 | 325,830 | 256,177 |
| Total Compensation and Benefits | 1,814,135 | 1,421,530 | 3,558,550 | 2,853,370 |
| General, Administrative and Other | 409,110 | 360,817 | 781,931 | 693,190 |
| Interest Expense | 145,023 | 135,822 | 282,076 | 253,937 |
| Fund Expenses | 7,344 | 14,434 | 15,348 | 26,538 |
| Total Expenses | 2,375,612 | 1,932,603 | 4,637,905 | 3,827,035 |
| Other Income | | | | |
| Net Gains from Fund Investment Activities | 140,086 | 136,330 | 239,841 | 193,905 |
| Total Other Income | 140,086 | 136,330 | 239,841 | 193,905 |
| Income Before Provision for Taxes | 2,808,452 | 1,915,627 | 4,263,509 | 3,368,228 |
| Provision for Taxes | 452,386 | 289,494 | 649,536 | 533,321 |
| Net Income | 2,356,066 | 1,626,133 | 3,613,973 | 2,834,907 |
| Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 5,154 | 18,209 | 26,164 | 26,109 |
| Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 175,649 | 240,836 | 293,016 | 341,383 |
| Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | 946,074 | 602,844 | 1,415,875 | 1,088,319 |
| Net Income Attributable to Blackstone Inc. | $1,229,189 | $764,244 | $1,878,918 | $1,379,096 |
| Net Income Per Share of Common Stock | | | | |
| Basic | $1.54 | $0.98 | $2.37 | $1.77 |
| Diluted | $1.54 | $0.98 | $2.37 | $1.77 |
| Weighted-Average Shares of Common Stock Outstanding | | | | |
| Basic | 799,882,459 | 782,386,121 | 792,647,549 | 777,120,501 |
| Diluted | 799,897,435 | 782,401,237 | 793,137,073 | 777,447,168 |
See notes to condensed consolidated financial statements.
7
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**Blackstone Inc.**
### Condensed Consolidated Statements of Comprehensive Income (Unaudited)
_(Dollars in Thousands)_
| Line item | Three Months Ended / June 30, 2026 | Three Months Ended / June 30, 2025 | Six Months Ended / June 30, 2026 | Six Months Ended / June 30, 2025 |
| --- | --- | --- | --- | --- |
| Net Income | $2,356,066 | $1,626,133 | $3,613,973 | $2,834,907 |
| Other Comprehensive Income (Loss) – Currency Translation Adjustment | (8,841) | 165,056 | (50,941) | 241,527 |
| Comprehensive Income | 2,347,225 | 1,791,189 | 3,563,032 | 3,076,434 |
| Less: | | | | |
| Comprehensive Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 1,334 | 128,584 | (2,363) | 191,638 |
| Comprehensive Income Attributable to Non-Controlling Interests in Consolidated Entities | 175,649 | 240,836 | 293,016 | 341,383 |
| Comprehensive Income Attributable to Non-Controlling Interests in Blackstone Holdings | 943,872 | 627,443 | 1,406,042 | 1,122,936 |
| Comprehensive Income Attributable to Non-Controlling Interests | 1,120,855 | 996,863 | 1,696,695 | 1,655,957 |
| Comprehensive Income Attributable to Blackstone Inc. | $1,226,370 | $794,326 | $1,866,337 | $1,420,477 |
See notes to condensed consolidated financial statements.
8
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**Blackstone Inc.**
### Condensed Consolidated Statements of Changes in Equity (Unaudited)
_(Dollars in Thousands, Except Share Data)_
| Line item | Shares of Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Additional Paid-in- Capital | Blackstone Inc. (a) / Retained Earnings (Deficit) | Blackstone Inc. (a) / Accumulated Other Compre- hensive Income (Loss) | Blackstone Inc. (a) / Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at March 31, 2026 | 751,535,403 | $7 | $8,710,266 | $(323,733) | $(15,770) | $8,370,770 | $7,226,994 | $4,418,528 | $20,016,292 | $1,400,419 |
| Transfer Out Due to Deconsolidation of Fund Entities | — | — | — | — | — | — | (120,688) | — | (120,688) | — |
| Net Income | — | — | — | 1,229,189 | — | 1,229,189 | 175,649 | 946,074 | 2,350,912 | 5,154 |
| Currency Translation Adjustment | — | — | — | — | (2,819) | (2,819) | — | (2,202) | (5,021) | (3,820) |
| Capital Contributions | — | — | — | — | — | — | 275,306 | 4,427 | 279,733 | 16,019 |
| Capital Distributions | — | — | — | (924,102) | — | (924,102) | (436,510) | (609,229) | (1,969,841) | (46,689) |
| Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities | — | — | 250 | — | — | 250 | (16,460) | — | (16,210) | — |
| Deferred Tax Effects on Equity Transactions | — | — | 1,834 | — | — | 1,834 | — | — | 1,834 | — |
| Equity-Based Compensation | — | — | 356,197 | — | — | 356,197 | — | 211,148 | 567,345 | — |
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 473,061 | — | (18,192) | — | — | (18,192) | — | — | (18,192) | — |
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (200,000) | — | (24,019) | — | — | (24,019) | — | — | (24,019) | — |
| Change in Blackstone Inc.’s Ownership Interest | — | — | 16,807 | — | — | 16,807 | — | (16,807) | — | — |
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 792,823 | — | 8,628 | — | — | 8,628 | — | (8,628) | — | — |
| Balance at June 30, 2026 | 752,601,287 | $7 | $9,051,771 | $(18,646) | $(18,589) | $9,014,543 | $7,104,291 | $4,943,311 | $21,062,145 | $1,371,083 |
(a) During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent.
continued...
See notes to condensed consolidated financial statements.
9
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**Blackstone Inc.**
### Condensed Consolidated Statements of Changes in Equity (Unaudited)
_(Dollars in Thousands, Except Share Data)_
| Line item | Shares of Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Additional Paid-in- Capital | Blackstone Inc. (a) / Retained Earnings (Deficit) | Blackstone Inc. (a) / Accumulated Other Compre- hensive Income (Loss) | Blackstone Inc. (a) / Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at March 31, 2025 | 737,929,437 | $7 | $7,686,980 | $320,160 | $(29,027) | $7,978,120 | $6,400,585 | $4,103,824 | $18,482,529 | $1,382,374 |
| Net Income | — | — | — | 764,244 | — | 764,244 | 240,836 | 602,844 | 1,607,924 | 18,209 |
| Currency Translation Adjustment | — | — | — | — | 30,082 | 30,082 | — | 24,599 | 54,681 | 110,375 |
| Capital Contributions | — | — | — | — | — | — | 382,656 | 4,113 | 386,769 | 32,111 |
| Capital Distributions | — | — | — | (721,790) | — | (721,790) | (174,811) | (497,794) | (1,394,395) | (55,940) |
| Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities | — | — | 1,053 | — | — | 1,053 | (1,481) | — | (428) | — |
| Deferred Tax Effects on Equity Transactions | — | — | 22,363 | — | — | 22,363 | — | — | 22,363 | — |
| Equity-Based Compensation | — | — | 290,120 | — | — | 290,120 | — | 177,425 | 467,545 | — |
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 443,741 | — | (7,425) | — | — | (7,425) | — | — | (7,425) | — |
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (200,000) | — | (27,812) | — | — | (27,812) | — | — | (27,812) | — |
| Change in Blackstone Inc.’s Ownership Interest | — | — | 14,336 | — | — | 14,336 | — | (14,336) | — | — |
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 882,766 | — | 9,048 | — | — | 9,048 | — | (9,048) | — | — |
| Balance at June 30, 2025 | 739,055,944 | $7 | $7,988,663 | $362,614 | $1,055 | $8,352,339 | $6,847,785 | $4,391,627 | $19,591,751 | $1,487,129 |
(a) During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent.
continued...
See notes to condensed consolidated financial statements.
10
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**Blackstone Inc.**
### Condensed Consolidated Statements of Changes in Equity (Unaudited)
_(Dollars in Thousands, Except Share Data)_
| Line item | Shares of Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Additional Paid-in- Capital | Blackstone Inc. (a) / Retained Earnings (Deficit) | Blackstone Inc. (a) / Accumulated Other Compre- hensive Income (Loss) | Blackstone Inc. (a) / Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non-Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at December 31, 2025 | 748,688,068 | $7 | $8,479,886 | $191,641 | $(6,008) | $8,665,526 | $7,224,211 | $4,610,932 | $20,500,669 | $1,380,503 |
| Transfer In Due to Consolidation of Fund Entities | — | — | — | — | — | — | 120,495 | — | 120,495 | — |
| Transfer Out Due to Deconsolidation of Fund Entities | — | — | — | — | — | — | (433,923) | — | (433,923) | — |
| Net Income | — | — | — | 1,878,918 | — | 1,878,918 | 293,016 | 1,415,875 | 3,587,809 | 26,164 |
| Currency Translation Adjustment | — | — | — | — | (12,581) | (12,581) | — | (9,833) | (22,414) | (28,527) |
| Capital Contributions | — | — | — | — | — | — | 689,967 | 8,994 | 698,961 | 85,648 |
| Capital Distributions | — | — | — | (2,089,205) | — | (2,089,205) | (746,862) | (1,366,621) | (4,202,688) | (92,705) |
| Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities | — | — | 250 | — | — | 250 | (42,613) | — | (42,363) | — |
| Deferred Tax Effects on Equity Transactions | — | — | 16,810 | — | — | 16,810 | — | — | 16,810 | — |
| Equity-Based Compensation | — | — | 594,675 | — | — | 594,675 | — | 352,672 | 947,347 | — |
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 2,657,770 | — | (60,141) | — | — | (60,141) | — | — | (60,141) | — |
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (400,000) | — | (48,417) | — | — | (48,417) | — | — | (48,417) | — |
| Change in Blackstone Inc.’s Ownership Interest | — | — | 50,301 | — | — | 50,301 | — | (50,301) | — | — |
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 1,655,449 | — | 18,407 | — | — | 18,407 | — | (18,407) | — | — |
| Balance at June 30, 2026 | 752,601,287 | $7 | $9,051,771 | $(18,646) | $(18,589) | $9,014,543 | $7,104,291 | $4,943,311 | $21,062,145 | $1,371,083 |
(a) During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent.
continued...
See notes to condensed consolidated financial statements.
11
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**Blackstone Inc.**
### Condensed Consolidated Statements of Changes in Equity (Unaudited)
_(Dollars in Thousands, Except Share Data)_
| Line item | Shares of Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Common Stock | Blackstone Inc. (a) / Additional Paid-in- Capital | Blackstone Inc. (a) / Retained Earnings (Deficit) | Blackstone Inc. (a) / Accumulated Other Compre- hensive Income (Loss) | Blackstone Inc. (a) / Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance at December 31, 2024 | 731,925,965 | $7 | $7,444,561 | $808,079 | $(40,326) | $8,212,321 | $6,154,943 | $4,326,352 | $18,693,616 | $801,399 |
| Transfer Out Due to Deconsolidation of Fund Entities | — | — | — | — | — | — | (389,344) | — | (389,344) | (127,295) |
| Net Income | — | — | — | 1,379,096 | — | 1,379,096 | 341,383 | 1,088,319 | 2,808,798 | 26,109 |
| Currency Translation Adjustment | — | — | — | — | 41,381 | 41,381 | — | 34,617 | 75,998 | 165,529 |
| Capital Contributions | — | — | — | — | — | — | 1,121,422 | 8,299 | 1,129,721 | 722,245 |
| Capital Distributions | — | — | — | (1,824,561) | — | (1,824,561) | (380,877) | (1,257,746) | (3,463,184) | (102,226) |
| Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities | — | — | 1,158 | — | — | 1,158 | 258 | — | 1,416 | 1,368 |
| Deferred Tax Effects on Equity Transactions | — | — | 69,287 | — | — | 69,287 | — | — | 69,287 | — |
| Equity-Based Compensation | — | — | 496,599 | — | — | 496,599 | — | 304,207 | 800,806 | — |
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 2,792,871 | — | (76,532) | — | — | (76,532) | — | — | (76,532) | — |
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (400,000) | — | (58,831) | — | — | (58,831) | — | — | (58,831) | — |
| Change in Blackstone Inc.’s Ownership Interest | — | — | 62,176 | — | — | 62,176 | — | (62,176) | — | — |
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 4,737,108 | — | 50,245 | — | — | 50,245 | — | (50,245) | — | — |
| Balance at June 30, 2025 | 739,055,944 | $7 | $7,988,663 | $362,614 | $1,055 | $8,352,339 | $6,847,785 | $4,391,627 | $19,591,751 | $1,487,129 |
(a) During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent.
See notes to condensed consolidated financial statements.
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**Blackstone Inc.**
### Condensed Consolidated Statements of Cash Flows (Unaudited)
_(Dollars in Thousands)_
| Line item | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- |
| Operating Activities | | |
| Net Income | $3,613,973 | $2,834,907 |
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | | |
| Net Realized Gains on Investments | (2,937,722) | (1,905,804) |
| Changes in Unrealized Gains on Investments | (207,451) | (632,886) |
| Non-Cash Performance Allocations | (870,592) | (576,484) |
| Non-Cash Performance Allocations and Incentive Fee Compensation | 1,428,628 | 953,235 |
| Equity-Based Compensation Expense | 915,468 | 783,445 |
| Amortization of Intangibles | 18,072 | 17,949 |
| Other Non-Cash Amounts Included in Net Income | (263,024) | 136,035 |
| Cash Flows Due to Changes in Operating Assets and Liabilities | | |
| Cash Acquired with Consolidation of Fund Entities | 830 | — |
| Cash Relinquished with Deconsolidation of Fund Entities | (12,946) | (65,803) |
| Accounts Receivable | (402,662) | (117,317) |
| Due from Affiliates | 476,083 | 241,640 |
| Other Assets | 194,767 | 118,683 |
| Accrued Compensation and Benefits | (953,907) | (705,817) |
| Accounts Payable, Accrued Expenses and Other Liabilities | 166,094 | (23,200) |
| Due to Affiliates | 10,999 | (150,153) |
| Investments Purchased | (1,417,701) | (2,351,387) |
| Cash Proceeds from Sale of Investments | 3,173,541 | 3,440,678 |
| Net Cash Provided by Operating Activities | 2,932,450 | 1,997,721 |
| Investing Activities | | |
| Purchase of Furniture, Equipment and Leasehold Improvements | (65,372) | (69,424) |
| Net Cash Used in Investing Activities | (65,372) | (69,424) |
| Financing Activities | | |
| Distributions to Non-Controlling Interest Holders in Consolidated Entities | (839,320) | (481,852) |
| Contributions from Non-Controlling Interest Holders in Consolidated Entities | 733,252 | 1,845,102 |
| Payments Under Tax Receivable Agreement | (63,820) | (43,954) |
| Net Settlement of Vested Common Stock and Repurchase of Common Stock | (108,558) | (135,363) |
| Proceeds from Loans Payable | 1,637,859 | 1,024,556 |
continued…
See notes to condensed consolidated financial statements.
1
3
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**Blackstone Inc.**
### Condensed Consolidated Statements of Cash Flows (Unaudited)
_(Dollars in Thousands)_
| Line item | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- |
| Financing Activities (Continued) | | |
| Repayment and Repurchase of Loans Payable | $(851,318) | $(706,362) |
| Dividends/Distributions to Stockholders and Unitholders | (3,446,832) | (3,074,008) |
| Net Cash Used in Financing Activities | (2,938,737) | (1,571,881) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | (9,720) | 16,841 |
| Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | | |
| Net Increase (Decrease) | (81,379) | 373,257 |
| Beginning of Period | 2,854,682 | 2,176,192 |
| End of Period | $2,773,303 | $2,549,449 |
| Supplemental Disclosure of Cash Flows Information | | |
| Payments for Interest | $261,314 | $248,437 |
| Payments for Income Taxes | $141,294 | $296,994 |
| Supplemental Disclosure of Non-Cash Investing and Financing Activities | | |
| Non-Cash Contributions from Non-Controlling Interest Holders | $8,994 | $8,299 |
| Non-Cash Distributions to Non-Controlling Interest Holders | $(9,241) | $(9,551) |
| Transfer of Interests to Non-Controlling Interest Holders | $(42,613) | $1,626 |
| Net Settlement of Vested Common Stock | $601,407 | $580,665 |
| Deferred Tax Asset Increase from Equity Transactions | $77,800 | $255,309 |
| Due to Affiliates Increase Related to the Impact of Conversions on Tax Receivable Agreements | $56,796 | $199,908 |
The following table provides a reconciliation of Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other reported within the Condensed Consolidated Statements of Financial Condition:
| Line item | June 30,2026 | December 31,2025 |
| --- | --- | --- |
| Cash and Cash Equivalents | $2,507,073 | $2,631,241 |
| Cash Held by Blackstone Funds and Other | 266,230 | 223,441 |
| | $2,773,303 | $2,854,682 |
See notes to condensed consolidated financial statements.
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Blackstone Inc.
### Notes to Condensed Consolidated Financial Statements (Unaudited)
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
1. Organization
Blackstone Inc., together with its consolidated subsidiaries (“Blackstone” or the “Company”), is the world’s largest alternative asset manager. Blackstone’s asset management business includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. “Blackstone Funds” refers to the funds and other vehicles that are managed by Blackstone. Blackstone’s business is organized into four segments: Real Estate, Private Equity, Credit & Insurance and Multi-Asset Investing.
Blackstone Inc. was initially formed as The Blackstone Group L.P., a Delaware limited partnership, on March 12, 2007. Prior to its conversion on July 1, 2019 to a Delaware corporation, Blackstone Inc. was managed and operated by Blackstone Group Management L.L.C., which is wholly owned by Blackstone’s senior managing directors and controlled by one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”).
The activities of Blackstone are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings,” “Blackstone Holdings Partnerships” or the “Holding Partnerships”). Blackstone, through its wholly owned subsidiaries, is the sole general partner of each of the Holding Partnerships. Generally, holders of the limited partner interests in the Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone common stock, on a
one-to-one
basis, exchanging one Partnership Unit from each of the Holding Partnerships for one share of Blackstone common stock.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Blackstone have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions
to
Form 10-Q.
The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in audited financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in Blackstone’s Annual Report on
Form 10-K
for the year ended December 31, 2025 filed with the United States Securities and Exchange Commission.
The condensed consolidated financial statements include the accounts of Blackstone, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which Blackstone is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is determined to have control.
All intercompany balances and transactions have been eliminated in consolidation.
Consolidation
Blackstone consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. Blackstone has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive
kick-out
rights or participating rights that would overcome the control held by Blackstone. Accordingly, Blackstone consolidates Blackstone Holdings and records
non-controlling
interests to reflect the economic interests of the limited partners of Blackstone Holdings.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In addition, Blackstone consolidates all variable interest entities (“VIE”) for which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Blackstone holds a variable interest is a VIE and (b) whether Blackstone’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment.
Blackstone determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether Blackstone is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by Blackstone. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that Blackstone is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by Blackstone, affiliates of Blackstone or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, Blackstone assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly.
Assets of consolidated VIEs that can only be used to settle obligations of the
consolidated
VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Condensed Consolidated Statements of Financial Condition.
Blackstone’s other disclosures regarding VIEs are discussed in Note 8. “Variable Interest Entities.”
Revenue Recognition
Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other.
Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 17. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers.
Management and Advisory Fees, Net
— Management and Advisory Fees, Net are comprised of management fees, including base management fees, transaction, advisory and other fees net of management fee reductions and offsets.
Blackstone earns base management fees from its customers at a fixed percentage of a calculation base which is typically net asset value, gross asset value, total fair value of investments, committed capital, total invested capital or remaining invested capital. Blackstone identifies its customers on a fund by fund basis in accordance with the terms and circumstances of the individual fund. Generally the customer is identified as the investors in its
1
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted) managed funds and investment vehicles, but for certain widely held funds or vehicles, the fund or vehicle itself may be identified as the customer. These customer contracts require Blackstone to provide investment management services, which represents a performance obligation that Blackstone satisfies over time. Management fees are a form of variable consideration because the fees Blackstone is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid.
Transaction, advisory and other fees includes fees charged to the investors of funds indirectly through the managed funds and portfolio companies and capital markets advisory revenues. Investment advisory agreements may require that the investment adviser reduce the amount of management fees payable by the investors to Blackstone (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to Blackstone. The amount of the reduction varies by fund, the type of fee paid and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for Blackstone’s performance obligation to provide investment management services to the investors of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed. Capital markets advisory revenues include fees earned in connection with advisory and capital markets services such as, underwriting, issuance, placement and syndication of debt and equity instruments, and are generally not subject to corresponding management fee reductions.
Management fee offsets are reductions to management fees payable by the investors of the Blackstone Funds, which includes amounts such investors reimburse the Blackstone Funds or Blackstone primarily for placement fees, rebates and other consideration determined to be an adjustment to the transaction price. Providing investment management services requires Blackstone to arrange for services on behalf of its customers. In those situations where Blackstone is acting as an agent on behalf of the investors of funds, it presents the cost of services as net against management fee revenue. In all other situations, Blackstone is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the investors of the funds recorded as Management and Advisory Fees, Net. In cases where the investors of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract. Capitalized placement fees are amortized over the life of the customer contract, are recorded within Other Assets in the Condensed Consolidated Statements of Financial Condition and amortization is recorded within General, Administrative and Other within the Condensed Consolidated Statements of Operations. In cases where the Blackstone Funds are determined to be the customer in the arrangement, placement fees are generally expensed as incurred. Blackstone may also pay ongoing investor servicing fees to certain distributors of its products. Where Blackstone is the principal in those arrangements, ongoing investor servicing fees are expensed as incurred and are recorded within General, Administrative and Other expense.
Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Due from Affiliates in the Condensed Consolidated Statements of Financial Condition.
Incentive Fees
— Contractual fees earned based on the performance of Blackstone vehicles (“Incentive Fees”) are a form of variable consideration in Blackstone’s contracts with customers to provide investment management services. Incentive Fees are earned based on performance of the vehicle during the period, subject to the achievement of minimum return levels, or high water marks, in accordance with the respective terms set out in each vehicle’s governing agreements. Incentive Fees will not be recognized as revenue until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved. Incentive Fees are typically recognized as
17
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
revenue when realized at the end of the measurement period. Once realized, such fees are not subject to clawback or reversal. Accrued but unpaid Incentive Fees charged directly to investors in Blackstone vehicles as of the reporting date are recorded within Due from Affiliates in the Condensed Consolidated Statements of Financial Condition.
Investment Income (Loss)
— Investment Income (Loss) represents the unrealized and realized gains and losses on Blackstone’s Performance Allocations and Principal Investments.
In carry fund structures and certain open-ended structures, Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its
pro-rata
share of the results of the fund vehicle (a
“pro-rata
allocation”). In addition to a
pro-rata
allocation, and assuming certain investment returns are achieved, Blackstone is entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”).
Performance Allocations are made to the general partner based either on cumulative fund performance to date, subject to a preferred return to limited partners or based on vehicle performance over a period of time, subject to a high water mark and preferred return to investors. At the end of each reporting period, Blackstone calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to Blackstone for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Condensed Consolidated Statements of Financial Condition.
Performance Allocations in carry fund structures are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations in carry fund structures are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and
non-controlling
interest holders that would need to be repaid to the Blackstone carry funds if the Blackstone carry funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain funds, which may have an interim clawback liability. Performance Allocations in open-ended structures are realized based on the stated time period in the agreements and are generally not subject to clawback once paid.
Principal Investments include the unrealized and realized gains and losses on Blackstone’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive
pro-rata
allocations, its equity method investments and other principal investments. Income (Loss) on Principal Investments is realized when Blackstone redeems all or a portion of its investment or when Blackstone receives cash income, such as dividends or distributions. Unrealized Income (Loss) on Principal Investments results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Interest and Dividend Revenue
— Interest consists primarily of interest income earned on cash, receivables and Blackstone held principal investments not accounted for under the equity method. Dividend Revenue consists primarily of dividend income earned on principal investments not accounted for under the equity method held by Blackstone, including investments accounted for under the fair value option.
Other Revenue
— Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars.
Fair Value of Financial Instruments
GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:
- Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price.
- Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within consolidated collateralized loan obligations (“CLO”) vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter derivatives where the fair value is based on observable inputs. Notes issued by consolidated CLO vehicles are classified within Level II of the fair value hierarchy.
- Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include private investments in the equity of operating companies, real estate properties, distressed debt and non-investment grade residual interests in securitizations, investments in non-consolidated CLOs and certain over-the-counter derivatives where the fair value is based on unobservable inputs.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Blackstone’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Level II Valuation Techniques
Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, debt securities sold, not yet purchased and certain equity securities and derivative instruments valued using observable inputs.
The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows:
- Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants including those provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction.
- Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads.
- Notes issued by consolidated CLO vehicles are measured based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services.
Level III Valuation Techniques
In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for
non-performance
and liquidity risks. Investments for which market prices are not observable include private investments in the equity of operating companies, real estate properties and investments in
non-consolidated
CLO vehicles.
Real Estate Investments
– The fair values of real estate investments are determined by considering projected operating cash flows, sales of comparable assets, if any, and replacement costs, among other measures and considerations. The methods used to estimate the fair value of real estate investments include the discounted cash flow method, where value is calculated by discounting the estimated cash flows and the estimated terminal value of the subject investment by the assumed buyer’s weighted-average cost of capital. A terminal value is derived by reference to an exit multiple, such as for estimates of earnings before interest, taxes, depreciation and amortization (“EBITDA”), or a capitalization rate, such as for estimates of net operating income (“NOI”). Valuations may also be derived by the performance multiple or market approach, by reference to observable valuation measures for comparable companies or assets (for example, dividing NOI by a relevant capitalization rate observed for comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables.
Private Equity Investments
– The fair values of private equity investments are determined by reference to projected net earnings, EBITDA, public market or private transactions, valuations for comparable companies and other measures which, in many cases, are based on unaudited information at the time received. The methods used to estimate the fair value of private equity investments include the discounted cash flow method. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. Valuations may also be derived by reference to observable valuation measures for comparable
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
companies or transactions (for example, multiplying a key performance metric of the investee company, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods.
Credit-Focused Investments
– For credit-focused investments that are not publicly traded or whose market prices are not readily available, Blackstone may utilize other valuation techniques, including the discounted cash flow method or a market approach. The discounted cash flow method projects the expected cash flows of the debt instrument based on contractual terms, and discounts such cash flows back to the valuation date using a market-based yield. The market-based yield is generally estimated using yields of publicly traded debt instruments issued by companies operating in similar industries as the subject investment or based on changes in credit spreads of a broader benchmark index applicable to a subject investment.
The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring.
Investments, at Fair Value
Generally, the Blackstone Funds are accounted for as investment companies in accordance with the GAAP guidance on investment companies, and under the American Institute of Certified Public Accountants Audit and Accounting Guide,
Investment Companies
, and reflect their investments, including majority-owned and controlled investments, at fair value. Such consolidated funds’ investments are reflected in Investments on the Condensed Consolidated Statements of Financial Condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date, at current market conditions (i.e., the exit price).
Certain principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Condensed Consolidated Statements of Operations within Investment Income (Loss).
For certain instruments, Blackstone has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition or other eligible election dates. Blackstone has applied the fair value option for certain loans and receivables, unfunded loan commitments and certain investments that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate and credit-focused investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue.
Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures notes issued by consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any
non-financial
assets held temporarily, less (b) the sum of the fair value of any beneficial interests retained by Blackstone (other than those that represent compensation for services) and Blackstone’s carrying value of any beneficial interests that represent compensation for services. As a
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
result of this measurement alternative, there is no attribution of amounts to
Non-Controlling
Interests for consolidated CLO vehicles. Assets of the consolidated CLOs are presented within Investments within the Condensed Consolidated Statements of Financial Condition and notes payable within Loans Payable for the amounts due to unaffiliated third parties. Changes in the fair value of consolidated CLO assets and liabilities and related interest, dividend and other income are presented within Net Gains (Losses) from Fund Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses.
Blackstone has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market, quoted prices that are published on a regular basis and are the basis for current transactions or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations.
Further disclosure on instruments for which the fair value option has been elected is presented in Note 6. “Fair Value Option.”
Blackstone may elect to measure certain proprietary investments in equity securities without readily determinable fair values under the measurement alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the same or a similar security from the same issuer. If the measurement alternative election is not made, the equity security is measured at fair value. The measurement alternative election is made on an instrument by instrument basis. The election is reassessed each reporting period to determine whether investments under the measurement alternative have readily determinable fair values, in which case they would no longer be eligible for this election.
Certain investments of Blackstone and the consolidated Blackstone funds are valued at NAV per share pursuant to the practical expedient. In limited circumstances, Blackstone may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, Blackstone will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP.
The terms of the investee’s investment generally provide for minimum holding periods or
lock-ups,
the institution of gates on redemptions or the suspension of redemptions or an ability to side pocket investments, at the discretion of the investee’s fund manager, and as a result, investments may not be redeemable at, or within three months of, the reporting date.
Security and loan transactions are recorded on a trade date basis.
Equity Method Investments
Investments in which Blackstone is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. Blackstone has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which generally include both a proportionate and disproportionate allocation of the profits and losses (as is the case with funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, Blackstone’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Condensed Consolidated Statements of Operations.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In cases where Blackstone’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with funds that include a Performance Allocation), Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period, Blackstone calculates the Accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Condensed Consolidated Statements of Financial Condition.
Strategic Partners’ results presented in Blackstone’s condensed consolidated financial statements are reported on a three-month lag from Strategic Partners’ fund financial statements, which report the performance of underlying investments generally on a same quarter basis, if available. Therefore, Strategic Partners’ results presented herein do not reflect the impact of economic and
market
activity in the current quarter. Current quarter market activity of Strategic Partners’ underlying investments is expected to affect Blackstone’s reported results in upcoming periods.
Compensation and Benefits
Compensation and Benefits
—
Compensation
— Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and senior managing directors and (b) equity-based compensation associated with the grants of equity-based awards to employees and senior managing directors. Compensation cost relating to the issuance of equity-based awards to senior managing directors and employees is measured at fair value at the grant date, and expensed over the vesting period on a straight-line basis, taking into consideration expected forfeitures, except in the case of (a) equity-based awards that do not require future service, which are expensed immediately, and (b) certain awards to recipients that meet criteria making them eligible for retirement (allowing such recipient to keep a percentage of those awards upon departure from Blackstone after becoming eligible for retirement), for which the expense for the portion of the award that would be retained in the event of retirement is either expensed immediately or amortized to the retirement date. Cash settled equity-based awards and awards settled in a variable number of shares are classified as liabilities and are remeasured at the end of each reporting period.
Compensation and Benefits
— Incentive Fee Compensation
—
Incentive Fee Compensation consists of compensation paid based on Incentive Fees.
Compensation and Benefits
— Performance Allocations Compensation
—
Performance Allocations Compensation
consists
of compensation paid based on Performance Allocations (which may be distributed in cash or
in-kind).
Such compensation expense is subject to both positive and negative adjustments. Performance Allocations Compensation is generally based on the performance of individual investments held by a fund rather than on a fund by fund basis. These amounts may also include allocations of investment income from Blackstone’s principal investments, to senior managing directors and employees participating in certain profit sharing initiatives.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Non-Controlling
Interests in Consolidated Entities
Non-Controlling
Interests in Consolidated Entities represent the component of Equity in general partner entities and consolidated Blackstone funds held by third-party investors and employees. The percentage interests in consolidated Blackstone funds held by third parties and employees is adjusted for general partner allocations and by subscriptions and redemptions in funds of hedge funds and certain credit-focused funds which occur during the reporting period. Income (Loss) and other comprehensive income, if applicable, arising from the respective entities is allocated to
non-controlling
interests in consolidated entities based on the relative ownership interests of third-party investors and employees after considering any contractual arrangements that govern the allocation of income (loss) such as fees allocable to Blackstone Inc.
Redeemable
Non-Controlling
Interests in Consolidated Entities
Investors in certain consolidated vehicles may be granted redemption rights that allow for quarterly or monthly redemption, as outlined in the relevant governing documents. Such redemption rights may be subject to certain limitations, including limits on the aggregate amount of interests that may be redeemed in a given period, may only allow for redemption following the expiration of a specified period of time, or may be withdrawn subject to a redemption fee during the period when capital may not be withdrawn. As a result, amounts relating to third-party interests in such consolidated vehicles are presented as Redeemable
Non-Controlling
Interests in Consolidated Entities within the Condensed Consolidated Statements of Financial Condition. When redeemable amounts become legally payable to investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition. For all consolidated vehicles in which redemption rights have not been granted,
non-controlling
interests are presented within Equity in the Condensed Consolidated Statements of Financial Condition as
Non-Controlling
Interests in Consolidated Entities.
Non-Controlling
Interests in Blackstone Holdings
Non-Controlling
Interests in Blackstone Holdings represent the component of Equity in the consolidated Blackstone Holdings Partnerships held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships.
Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to
Non-Controlling
Interests in Blackstone Holdings. This residual attribution is based on the
year-to-date
average percentage of Blackstone Holdings Partnership Units and unvested participating Holdings Partnership Units held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. Unvested participating Holdings Partnership Units are excluded from the attribution in periods of loss as they are not contractually obligated to share in losses of the Holdings Partnerships.
Income Taxes
Provision for Income Taxes
Income taxes are provided for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities, resulting in all pretax amounts being appropriately tax effected in the period, irrespective of which tax return year items will be reflected. Blackstone reports interest expense and tax penalties related to income tax matters in provision for income taxes.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. Valuation allowances are established to reduce the deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets are separately stated, and deferred tax liabilities are included in Accounts Payable, Accrued Expenses, and Other Liabilities in the condensed consolidated financial statements.
Unrecognized Tax Benefits
Blackstone recognizes tax positions in the condensed consolidated financial statements when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in the return and amounts recognized in the condensed consolidated financial statements. Accrued interest and penalties related to unrecognized tax benefits are reported on the related liability line in the condensed consolidated financial statements.
Net Income (Loss) Per Share of Common Stock
Basic Income (Loss) Per Share of Common Stock is calculated by dividing Net Income (Loss) Attributable to Blackstone Inc. by the weighted-average shares of common stock, unvested participating shares of common stock outstanding for the period and vested deferred restricted shares of common stock that have been earned for which issuance of the related shares of common stock is deferred until future periods. Diluted Income (Loss) Per Share of Common Stock reflects the impact of all dilutive securities. Unvested participating shares of common stock are excluded from the computation in periods of loss as they are not contractually obligated to share in losses.
Blackstone applies the treasury stock method to determine the dilutive weighted-average common shares outstanding for certain equity-based compensation awards. Blackstone applies the
“if-converted”
method to the Blackstone Holdings Partnership Units to determine the dilutive impact, if any, of the exchange right included in the Blackstone Holdings Partnership Units. Blackstone applies the contingently issuable share model to contracts that may require the issuance of shares.
Reverse Repurchase and Repurchase Agreements
Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), generally comprised of U.S. and
non-U.S.
government and agency securities, asset backed securities and corporate debt, represent collateralized financing transactions. Such transactions are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition at their contractual amounts and include accrued interest. The carrying value of reverse repurchase and repurchase agreements approximates fair value.
Blackstone manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide Blackstone, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Blackstone takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. Blackstone also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to repurchase agreements are included in Note 9. “Repurchase Agreements.”
Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 10. “Offsetting of Assets and Liabilities.”
Securities Sold, Not Yet Purchased
Securities Sold, Not Yet Purchased consist of equity and debt securities that Blackstone has borrowed and sold. Blackstone is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. Blackstone is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short.
Securities Sold, Not Yet Purchased are recorded at fair value within Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition.
Derivative Instruments
Blackstone recognizes all derivatives as assets or liabilities on its Condensed Consolidated Statements of Financial Condition at fair value. On the date Blackstone enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”).
For freestanding derivative contracts, Blackstone presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone funds are reflected in Net Gains (Losses) from Fund Investment Activities or, where derivative instruments are held by Blackstone, within Investment Income (Loss) in the Condensed Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition.
Blackstone has elected to not offset derivative assets and liabilities or financial assets in its Condensed Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides Blackstone, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.
Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 5. “Derivative Financial Instruments.”
Blackstone’s disclosures regarding offsetting are discussed in Note 10. “Offsetting of Assets and Liabilities.”
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Affiliates
Blackstone considers its Founder, senior managing directors, employees,
the
Blackstone Funds and the Portfolio Companies to be affiliates.
Dividends
Dividends are reflected in the condensed consolidated financial statements when declared.
3. Intangible Assets
Intangible Assets, Net consists of the following:
| Line item | June 30, 2026 | December 31, 2025 |
| --- | --- | --- |
| Finite-Lived Intangible Assets/Contractual Rights | $1,749,626 | $1,749,626 |
| Accumulated Amortization | (1,636,338) | (1,618,267) |
| Intangible Assets, Net | $113,288 | $131,359 |
Amortization expense associated with Blackstone’s intangible assets was $9.0 million and $18.1 million for the three and six months ended June 30, 2026, respectively, and $9.0 million and $17.9 million for the three and six months ended June 30, 2025, respectively.
Amortization of Intangible Assets held at June 30, 2026 is expected to be $36.1 million, $35.1 million, $18.2 million, $17.0 million and $14.0 million for the years ending December 31, 2026, 2027, 2028, 2029 and 2030, respectively. Blackstone’s Intangible Assets as of June 30, 2026 are expected to amortize over a weighted-average period of 4.1 years.
4. Investments
Investments consist of the following:
| Line item | June 30, 2026 | December 31, 2025 |
| --- | --- | --- |
| Investments of Consolidated Blackstone Funds | $5,233,815 | $5,180,879 |
| Equity Method Investments | | |
| Partnership Investments | 6,535,521 | 6,546,190 |
| Accrued Performance Allocations | 13,906,754 | 12,980,356 |
| Corporate Treasury Investments | 401,465 | 359,657 |
| Other Investments | 8,510,174 | 7,145,029 |
| | $34,587,729 | $32,212,111 |
Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $457.1 million and $472.7 million at June 30, 2026 and December 31, 2025, respectively.
Where appropriate, the accounting for Blackstone’s investments incorporates the changes in fair value of those investments as determined under GAAP. The significant inputs and assumptions required to determine the change in fair value of the Investments of Consolidated Blackstone Funds, Corporate Treasury Investments and Other Investments are discussed in more detail in Note 7. “Fair Value Measurements of Financial Instruments.”
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Investments of Consolidated Blackstone Funds
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone funds and a reconciliation to Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Realized Gains | $28,341 | $22,908 | $53,504 | $47,598 |
| Net Change in Unrealized Gains | 105,467 | 86,053 | 174,845 | 112,584 |
| Realized and Net Change in Unrealized Gains from Consolidated Blackstone Funds | 133,808 | 108,961 | 228,349 | 160,182 |
| Interest and Dividend Revenue, Foreign Exchange Gains and Other Gains Attributable to Consolidated Blackstone Funds | 6,278 | 27,369 | 11,492 | 33,723 |
| Other Income – Net Gains from Fund Investment Activities | $140,086 | $136,330 | $239,841 | $193,905 |
Equity Method Investments
Blackstone’s equity method investments include Partnership Investments, which represent the
pro-rata
investments, and any associated Accrued Performance Allocations, in Blackstone Funds, excluding any equity method investments for which the fair value option has been elected. Blackstone evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission. As of and for the six months ended June 30, 2026 and 2025, no individual equity method investment held by Blackstone met the significance criteria.
Partnership Investments
Blackstone recognized net gains related to its Partnership Investments accounted for under the equity method of $122.9 million and $279.4 million for the three months ended June 30, 2026 and 2025, respectively. Blackstone recognized net gains related to its Partnership Investments accounted for under the equity method of $225.4 million and $420.0 million for the six months ended June 30, 2026 and 2025, respectively.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Accrued Performance Allocations
Accrued Performance Allocations to Blackstone were as follows:
| Line item | Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total |
| --- | --- | --- | --- | --- | --- |
| Accrued Performance Allocations, December 31, 2025 | $1,762,496 | $10,389,351 | $640,587 | $187,922 | $12,980,356 |
| Performance Allocations as a Result of Changes in Fund Fair Values | 842,925 | 2,414,695 | 50,954 | 287,167 | 3,595,741 |
| Foreign Exchange Loss | (2,127) | — | — | — | (2,127) |
| Fund Distributions | (687,692) | (1,622,832) | (224,206) | (132,486) | (2,667,216) |
| Accrued Performance Allocations, June 30, 2026 | $1,915,602 | $11,181,214 | $467,335 | $342,603 | $13,906,754 |
Corporate Treasury Investments
The portion of corporate treasury investments included in Investments represents
Blackstone’s
investments into primarily fixed income securities, mutual fund interests, and other fund
interests
. These strategies are managed by a combination of Blackstone personnel and third-party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Realized Gains (Losses) | $(47) | $171 | $1,232 | $(8,185) |
| Net Change in Unrealized Gains (Losses) | 17,975 | 11,497 | (816) | 14,546 |
| | $17,928 | $11,668 | $416 | $6,361 |
Other Investments
Other Investments consist of equity method investments where Blackstone has elected the fair value option and other proprietary investment securities held by Blackstone, including
equity
securities carried at fair value, equity investments without readily determinable fair values, and senior secured and subordinated notes in
non-consolidated
CLO vehicles. Equity investments without a readily determinable
fair
value had a carrying value of $517.2 million as of June 30, 2026. In the period of acquisition and upon remeasurement in connection with an observable transaction, such investments are reported at fair value. See Note 7. “Fair Value Measurements of Financial Instruments” for additional detail. The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in Other Investments:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Realized Gains (Losses) | $(8,275) | $8,622 | $(4,495) | $121,270 |
| Net Change in Unrealized Gains | 385,185 | 215,750 | 70,256 | 388,182 |
| | $376,910 | $224,372 | $65,761 | $509,452 |
2
9
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
5. Derivative Financial Instruments
Blackstone and the consolidated Blackstone funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its
non-U.S.
dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.
Freestanding Derivatives
Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts.
| Line item | June 30, 2026 / Assets / Notional | June 30, 2026 / Assets / Fair Value | June 30, 2026 / Liabilities / Notional | June 30, 2026 / Liabilities / Fair Value | December 31, 2025 / Assets / Notional | December 31, 2025 / Assets / Fair Value | December 31, 2025 / Liabilities / Notional | December 31, 2025 / Liabilities / Fair Value |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Freestanding Derivatives | | | | | | | | |
| Blackstone | | | | | | | | |
| Interest Rate Contracts | $612,050 | $129,193 | $666,331 | $98,081 | $613,740 | $123,747 | $601,000 | $97,283 |
| Foreign Currency Contracts | 567,468 | 10,158 | 476,754 | 8,535 | 443,001 | 7,446 | 1,030,702 | 17,310 |
| Credit Default Swaps | — | — | 640 | 21 | — | — | 640 | 19 |
| Total Return Swaps | 81,490 | 8,872 | — | — | 23,532 | 3,364 | — | — |
| Equity Options | — | — | 1,521,822 | 1,152,061 | — | — | 1,462,632 | 1,124,147 |
| | 1,261,008 | 148,223 | 2,665,547 | 1,258,698 | 1,080,273 | 134,557 | 3,094,974 | 1,238,759 |
| Investments of Consolidated Blackstone Funds | | | | | | | | |
| Interest Rate Contracts | 858,527 | 10,028 | 858,527 | 10,028 | 880,390 | 12,780 | 880,390 | 12,780 |
| Foreign Currency Contracts | — | — | 5,835 | 26 | — | — | — | — |
| | 858,527 | 10,028 | 864,362 | 10,054 | 880,390 | 12,780 | 880,390 | 12,780 |
| | $2,119,535 | $158,251 | $3,529,909 | $1,268,752 | $1,960,663 | $147,337 | $3,975,364 | $1,251,539 |
30
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The table below summarizes the impact to the Condensed Consolidated Statements of Operations from derivative financial instruments:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Freestanding Derivatives | | | | |
| Realized Gains (Losses) | | | | |
| Foreign Currency Contracts | $5,018 | $11,776 | $(9,617) | $(116) |
| Credit Default Swaps | 1 | 5 | 1 | 5 |
| Total Return Swaps | 774 | 7,698 | 1,954 | 8,474 |
| | 5,793 | 19,479 | (7,662) | 8,363 |
| Net Change in Unrealized Gains (Losses) | | | | |
| Interest Rate Contracts | (5,106) | (45,360) | 8,295 | (37,974) |
| Foreign Currency Contracts | (10,139) | (23,103) | 11,478 | (6,376) |
| Credit Default Swaps | (2) | (11) | (2) | (17) |
| Total Return Swaps | 1,685 | (4,270) | 3,536 | (542) |
| Equity Options | (2,806) | (52,469) | (27,914) | (140,549) |
| | (16,368) | (125,213) | (4,607) | (185,458) |
| | $(10,575) | $(105,734) | $(12,269) | $(177,095) |
As of June 30, 2026 and December 31, 2025, Blackstone
had
not designated any derivatives as fair value, cash flow or net investment hedges.
6. Fair Value Option
The following table summarizes the financial instruments for which the fair value option has been elected:
| Line item | June 30, 2026 | December 31, 2025 |
| --- | --- | --- |
| Assets | | |
| Loans and Receivables | $394,761 | $205,158 |
| Equity and Preferred Securities | 6,471,882 | 4,880,907 |
| Debt Securities | 3,382 | 7,553 |
| | $6,870,025 | $5,093,618 |
| Liabilities | | |
| Corporate Treasury Commitments | 1,599 | 181 |
| | $1,599 | $181 |
31
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following tables present the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected:
| Line item | Three Months Ended June 30, 2026 / Realized Gains | Three Months Ended June 30, 2026 / Net Change in Unrealized Gains (Losses) | Three Months Ended June 30, 2025 / Realized Gains (Losses) | Three Months Ended June 30, 2025 / Net Change in Unrealized Gains (Losses) |
| --- | --- | --- | --- | --- |
| Assets | | | | |
| Loans and Receivables | $592 | $(1,813) | $(273) | $245 |
| Equity and Preferred Securities | 300 | 87,090 | 303 | (7,412) |
| Debt Securities | — | (236) | — | (2,808) |
| | $892 | $85,041 | $30 | $(9,975) |
| Liabilities | | | | |
| Corporate Treasury Commitments | — | 439 | — | 512 |
| | — | $439 | — | $512 |
| Line item | Six Months Ended June 30, 2026 / Realized Gains (Losses) | Six Months Ended June 30, 2026 / Net Changein Unrealized Gains (Losses) | Six Months Ended June 30, 2025 / Realized Gains (Losses) | Six Months Ended June 30, 2025 / Net Changein Unrealized Gains |
| --- | --- | --- | --- | --- |
| Assets | | | | |
| Loans and Receivables | $560 | $(2,966) | $(929) | $221 |
| Equity and Preferred Securities | 1,627 | 110,052 | (7,761) | 17,700 |
| Debt Securities | (11,226) | 8,319 | 642 | (3,822) |
| Assets of Consolidated CLO Vehicles | | | | |
| Corporate Loans | — | — | (1,712) | 1,038 |
| | $(9,039) | $115,405 | $(9,760) | $15,137 |
| Liabilities | | | | |
| CLO Notes Payable | — | — | — | $859 |
| Corporate Treasury Commitments | — | (1,418) | — | 76 |
| | — | $(1,418) | — | $935 |
32
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table presents information for those financial instruments for which the fair value option was elected:
| Line item | June 30, 2026 / Excess (Deficiency) of Fair Value Over Principal | June 30, 2026 / For Financial Assets Past Due (a) / Fair Value | June 30, 2026 / For Financial Assets Past Due (a) / Excess (Deficiency) of Fair Value Over Principal | December 31, 2025 / Excess (Deficiency) of Fair Value Over Principal | December 31, 2025 / For Financial Assets Past Due (a) / Fair Value | December 31, 2025 / For Financial Assets Past Due (a) / Excess (Deficiency) of Fair Value Over Principal |
| --- | --- | --- | --- | --- | --- | --- |
| Loans and Receivables | $679 | — | — | $5,490 | — | — |
| Debt Securities | (38,231) | — | — | (48,690) | — | — |
| | $(37,552) | — | — | $(43,200) | — | — |
(a) Assets are classified as past due if contractual payments are more than 90 days past due.
As of June 30, 2026 and December 31, 2025, no Loans and Receivables for which the fair value option was elected were
past
due or in
non-accrual
status.
3
3
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
7. Fair Value Measurements of Financial Instruments
Financial Assets and Liabilities by the Fair Value Hierarchy
The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy:
_June 30, 2026_
| Line item | Level I | Level II | Level III | NAV (a) | Total |
| --- | --- | --- | --- | --- | --- |
| Assets | | | | | |
| Cash and Cash Equivalents | $280,120 | — | — | — | $280,120 |
| Investments | | | | | |
| Investments of Consolidated Blackstone Funds | | | | | |
| Equity Securities, Partnerships and LLC Interests (b) | 2,916 | 192,078 | 3,962,213 | 1,020,481 | 5,177,688 |
| Debt Instruments | — | 22,871 | 23,228 | — | 46,099 |
| Freestanding Derivatives | — | 10,028 | — | — | 10,028 |
| Total Investments of Consolidated Blackstone Funds | 2,916 | 224,977 | 3,985,441 | 1,020,481 | 5,233,815 |
| Corporate Treasury Investments | 270,455 | 34,750 | 37,141 | 59,119 | 401,465 |
| Other Investments | 1,992,894 | 5,838,664 | 204,844 | 24,281 | 8,060,683 |
| Total Investments | 2,266,265 | 6,098,391 | 4,227,426 | 1,103,881 | 13,695,963 |
| Accounts Receivable - Loans and Receivables | — | — | 394,761 | — | 394,761 |
| Other Assets - Freestanding Derivatives | — | 139,351 | 8,872 | — | 148,223 |
| | $2,546,385 | $6,237,742 | $4,631,059 | $1,103,881 | $14,519,067 |
| Liabilities | | | | | |
| Accounts Payable, Accrued Expenses and Other Liabilities | | | | | |
| Consolidated Blackstone Funds - Freestanding Derivatives | — | $10,054 | — | — | $10,054 |
| Freestanding Derivatives | — | 106,637 | 1,152,061 | — | 1,258,698 |
| Contingent Consideration | — | — | 152 | — | 152 |
| Corporate Treasury Commitments | — | — | 1,599 | — | 1,599 |
| Securities Sold, Not Yet Purchased | 1,953 | — | — | — | 1,953 |
| Total Accounts Payable, Accrued Expenses and Other Liabilities | 1,953 | 116,691 | 1,153,812 | — | 1,272,456 |
| | $1,953 | $116,691 | $1,153,812 | — | $1,272,456 |
3
4
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
_December 31, 2025_
| Line item | Level I | Level II | Level III | NAV | Total |
| --- | --- | --- | --- | --- | --- |
| Assets | | | | | |
| Cash and Cash Equivalents | $182,131 | — | — | — | $182,131 |
| Investments | | | | | |
| Investments of Consolidated Blackstone Funds | | | | | |
| Equity Securities, Partnerships and LLC Interests (b) | 7,616 | 197,396 | 4,103,478 | 819,419 | 5,127,909 |
| Debt Instruments | — | 19,578 | 20,612 | — | 40,190 |
| Freestanding Derivatives | — | 12,780 | — | — | 12,780 |
| Total Investments of Consolidated Blackstone Funds | 7,616 | 229,754 | 4,124,090 | 819,419 | 5,180,879 |
| Corporate Treasury Investments | 74,930 | 42,675 | 181,052 | 61,000 | 359,657 |
| Other Investments | 2,207,914 | 4,313,592 | 198,393 | 15,808 | 6,735,707 |
| Total Investments | 2,290,460 | 4,586,021 | 4,503,535 | 896,227 | 12,276,243 |
| Accounts Receivable - Loans and Receivables | — | — | 205,158 | — | 205,158 |
| Other Assets - Freestanding Derivatives | — | 131,193 | 3,364 | — | 134,557 |
| | $2,472,591 | $4,717,214 | $4,712,057 | $896,227 | $12,798,089 |
| Liabilities | | | | | |
| Accounts Payable, Accrued Expenses and Other Liabilities | | | | | |
| Consolidated Blackstone Funds - Freestanding Derivatives | — | 12,780 | — | — | 12,780 |
| Freestanding Derivatives | — | 114,612 | 1,124,147 | — | 1,238,759 |
| Contingent Consideration | — | — | 416 | — | 416 |
| Corporate Treasury Commitments | — | — | 181 | — | 181 |
| Securities Sold, Not Yet Purchased | 1,978 | — | — | — | 1,978 |
| Total Accounts Payable, Accrued Expenses and Other Liabilities | 1,978 | 127,392 | 1,124,744 | — | 1,254,114 |
| | $1,978 | $127,392 | $1,124,744 | — | $1,254,114 |
LLC Limited Liability Company.
(a) A summary of the investments where the fair value is not readily determinable and NAV is used as a practical expedient as of June 30, 2026 is presented by strategy type below:
3
5
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Strategy | Fair Value | Unfunded Commitments | Redemption Frequency(if currently eligible) | Redemption Notice Period |
| --- | --- | --- | --- | --- |
| Equity | $118,359 | $12,362 | (1) | (1) |
| Real Estate | 24,222 | — | (2) | (2) |
| Infrastructure | 954,187 | 70,066 | (3) | (3) |
| Other | 7,113 | — | (4) | (4) |
| | $1,103,881 | $82,428 | | |
(1) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 61% of fair value of the investments in this category are redeemable as of the reporting date. Investments representing 39% of fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date.
(2) The Real Estate category includes investments in funds that primarily invest in real estate assets. All investments in this category are redeemable as of the reporting date.
(3) The Infrastructure category includes investments in funds that primarily invest in infrastructure assets and companies. All investments in this category may not be redeemed at, or within three months of, the reporting date.
(4) Other is composed of the Credit Driven category. The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. All investments in this category may not be redeemed at, or within three months of, the reporting date.
(b) Equity Securities, Partnership and LLC Interest includes investments in investment funds.
Equity Securities Subject to Sale Restrictions
Within Investments of Consolidated Blackstone Funds and Other Investments, Blackstone held equity securities subject to sale restrictions with a fair value of $704.0 million as of June 30, 2026. The nature of such restrictions are contractual or legal in nature and deemed an attribute of the holder rather than the investment. Contractual restrictions include certain phased restrictions on (a) sale or transfer, (b) underwriter
lock-ups
and (c) sale or transfer restrictions applicable to certain Investments of Consolidated Blackstone Funds pledged as collateral. Restrictions will generally lapse over time or after a predetermined date and the weighted-average remaining duration of such restrictions is 1
year.
Level III equity securities included in Investments of Consolidated Blackstone Funds are illiquid and privately negotiated in nature and may also be subject to contractual sale or transfer restrictions including those pursuant to their respective governing or similar agreements. Investments within Other Investments subject to restrictions on sale or transfer as a result of pledge arrangements are discussed in Note 16. “Commitments and Contingencies — Contingencies — Strategic Ventures.”
3
6
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Level III Quantitative Inputs and Assumptions
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of June 30, 2026. Consistent with presentation in these notes to condensed consolidated financial statements, this table presents the Level III investments only of consolidated Blackstone funds and therefore does not reflect any other Blackstone funds.
| Line item | Fair Value | Valuation Techniques | Unobservable Inputs | Ranges | Weighted-Average (a) | Impact to Valuationfrom an Increasein Input |
| --- | --- | --- | --- | --- | --- | --- |
| Financial Assets | | | | | | |
| Investments of Consolidated Blackstone Funds | | | | | | |
| Equity Securities, Partnership and LLC Interests | $3,962,213 | Discounted Cash Flows | Discount Rate | 4.4% - 41.2% | 10.2% | Lower |
| | | | Exit Multiple - EBITDA | 5.8x - 30.0x | 15.5x | Higher |
| | | | Exit Capitalization Rate | 3.1% - 15.6% | 5.2% | Lower |
| Debt Instruments | 23,228 | Discounted Cash Flows | Discount Rate | 6.0% - 20.2% | 14.1% | Lower |
| | | Other | N/A | | | |
| Total Investments of Consolidated Blackstone Funds | 3,985,441 | | | | | |
| Corporate Treasury Investments | 37,141 | Discounted Cash Flows | Discount Rate | 8.8% | 8.8% | Lower |
| | | Third-Party Pricing | N/A | | | |
| Loans and Receivables | 394,761 | Discounted Cash Flows | Discount Rate | 7.7% - 19.7% | 8.9% | Lower |
| | | Transaction Price | N/A | | | |
| Other Investments (b) | 213,716 | Discounted Cash Flows | Discount Rate | 7.2% - 7.9% | 7.5% | Lower |
| | | Transaction Price | N/A | | | |
| | $4,631,059 | | | | | |
| Financial Liabilities | | | | | | |
| Freestanding Derivatives (c) | $1,152,061 | Option Pricing Model | Volatility | 5.6% - 5.7% | 5.6% | Higher |
| Other Liabilities (d) | 1,751 | Third-Party Pricing | N/A | | | |
| | | Other | N/A | | | |
| | $1,153,812 | | | | | |
3
7
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2025:
| Line item | Fair Value | Valuation Techniques | Unobservable Inputs | Ranges | Weighted-Average (a) | Impact to Valuationfrom an Increasein Input |
| --- | --- | --- | --- | --- | --- | --- |
| Financial Assets | | | | | | |
| Investments of Consolidated Blackstone Funds | | | | | | |
| Equity Securities, Partnership and LLC Interests | $4,103,478 | Discounted Cash Flows | Discount Rate | 4.3% - 41.1% | 10.2% | Lower |
| | | | Exit Multiple - EBITDA | 5.0x - 30.6x | 16.6x | Higher |
| | | | Exit Capitalization Rate | 3.1% - 15.3% | 5.1% | Lower |
| Debt Instruments | 20,612 | Discounted Cash Flows | Discount Rate | 6.1% - 20.0% | 12.2% | Lower |
| Total Investments of Consolidated Blackstone Funds | 4,124,090 | | | | | |
| Corporate Treasury Investments | 181,052 | Discounted Cash Flows | Discount Rate | 8.7% - 11.1% | 9.9% | Lower |
| | | Third-Party Pricing | n/a | | | |
| Loans and Receivables | 205,158 | Discounted Cash Flows | Discount Rate | 7.4% - 18.3% | 8.3% | Lower |
| | | Other | n/a | | | |
| Other Investments (b) | 201,757 | Discounted Cash Flows | Discount Rate | 7.2% - 7.9% | 7.5% | Lower |
| | | Transaction Price | n/a | | | |
| | $4,712,057 | | | | | |
| Financial Liabilities | | | | | | |
| Freestanding Derivatives (c) | $1,124,147 | Option Pricing Model | Volatility | 5.7% - 5.8% | 5.7% | Higher |
| Other Liabilities (d) | 597 | Third-Party Pricing | n/a | | | |
| | | Other | n/a | | | |
| | $1,124,744 | | | | | |
n/a Not applicable.
EBITDA Earnings before interest, taxes, depreciation and amortization.
Exit Multiple Ranges include the last twelve months EBITDA and forward EBITDA multiples.
Third-Party Pricing Third-Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services.
Transaction Price Includes recent acquisitions or transactions.
(a) Unobservable inputs were weighted based on the fair value of the investments included in the range.
(b) As of June 30, 2026 and December 31, 2025, Other Investments includes Level III Freestanding Derivatives.
(c) The volatility of the historical performance of the underlying reference entities or an appropriate proxy is used to project the expected returns relevant for the fair value of the derivatives.
(d) As of June 30, 2026 and December 31, 2025, Other Liabilities includes Level III Contingent Consideration and Level III Corporate Treasury Commitments.
3
8
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
For the six months ended June 30, 2026, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments.
Rollforward of Level III Financial Assets and Liabilities
The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. These tables also exclude financial assets and liabilities measured at fair value on a
non-recurring
basis. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Condensed Consolidated Statements of Operations.
| Line item | Level III Financial Assets at Fair Value Three Months Ended June 30, 2026 / Investments of Consolidated Funds | Level III Financial Assets at Fair Value Three Months Ended June 30, 2026 / Loans and Receivables | Level III Financial Assets at Fair Value Three Months Ended June 30, 2026 / Other Investments (a) | Level III Financial Assets at Fair Value Three Months Ended June 30, 2026 / Total | Level III Financial Assets at Fair Value Three Months Ended June 30, 2025 / Investments of Consolidated Funds | Level III Financial Assets at Fair Value Three Months Ended June 30, 2025 / Loans and Receivables | Level III Financial Assets at Fair Value Three Months Ended June 30, 2025 / Other Investments (a) | Level III Financial Assets at Fair Value Three Months Ended June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance, Beginning of Period | $3,908,184 | $425,981 | $582,207 | $4,916,372 | $4,252,373 | $115,055 | $145,231 | $4,512,659 |
| Transfer Into Level III (b) | 2,618 | — | — | 2,618 | 84 | — | — | 84 |
| Transfer Out of Level III (b) | (37,081) | — | (408,745) | (445,826) | (281) | — | — | (281) |
| Purchases | 99,544 | 377,990 | 4,574 | 482,108 | 415,915 | 396,922 | 184,242 | 997,079 |
| Sales | (53,299) | (407,062) | (10,422) | (470,783) | (135,862) | (245,034) | (62,956) | (443,852) |
| Issuances | — | — | — | — | — | 765 | — | 765 |
| Settlements (c) | — | (13,478) | 1,141 | (12,337) | — | (3,685) | (11,430) | (15,115) |
| Changes in Gains (Losses) Included in Earnings | 65,475 | 11,330 | (7,333) | 69,472 | 219,368 | 4,000 | 14,432 | 237,800 |
| Balance, End of Period | $3,985,441 | $394,761 | $161,422 | $4,541,624 | $4,751,597 | $268,023 | $269,519 | $5,289,139 |
| Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date | $80,080 | $(1,977) | $(7,618) | $70,485 | $92,144 | $(629) | $7,763 | $99,278 |
3
9
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Line item | Level III Financial Assets at Fair Value Six Months Ended June 30, 2026 / Investmentsof Consolidated Funds | Level III Financial Assets at Fair Value Six Months Ended June 30, 2026 / Loansand Receivables | Level III Financial Assets at Fair Value Six Months Ended June 30, 2026 / Other Investments(a) | Level III Financial Assets at Fair Value Six Months Ended June 30, 2026 / Total | Level III Financial Assets at Fair Value Six Months Ended June 30, 2025 / Investmentsof Consolidated Funds | Level III Financial Assets at Fair Value Six Months Ended June 30, 2025 / Loansand Receivables | Level III Financial Assets at Fair Value Six Months Ended June 30, 2025 / Other Investments(a) | Level III Financial Assets at Fair Value Six Months Ended June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Balance, Beginning of Period | $4,124,090 | $205,158 | $310,196 | $4,639,444 | $3,173,442 | $100,866 | $624,412 | $3,898,720 |
| Transfer In Due to Consolidation and Acquisition | — | — | — | — | — | — | — | — |
| Transfer Out Due to Deconsolidation | (317,078) | — | — | (317,078) | (155,572) | — | — | (155,572) |
| Transfer Into Level III (b) | 3,387 | — | — | 3,387 | 1,446 | — | — | 1,446 |
| Transfer Out of Level III (b) | (39,049) | — | (419,485) | (458,534) | (2,039) | — | — | (2,039) |
| Purchases | 340,256 | 760,523 | 415,296 | 1,516,075 | 1,622,810 | 479,236 | 198,275 | 2,300,321 |
| Sales | (182,150) | (566,825) | (126,714) | (875,689) | (244,417) | (312,379) | (566,432) | (1,123,228) |
| Issuances | — | — | — | — | — | 3,823 | — | 3,823 |
| Settlements (c) | — | (19,492) | 18 | (19,474) | — | (11,398) | (11,597) | (22,995) |
| Changes in Gains (Losses) Included in Earnings | 55,985 | 15,397 | (17,889) | 53,493 | 355,927 | 7,875 | 24,861 | 388,663 |
| Balance, End of Period | $3,985,441 | $394,761 | $161,422 | $4,541,624 | $4,751,597 | $268,023 | $269,519 | $5,289,139 |
| Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date | $81,832 | $(3,238) | $(19,865) | $58,729 | $161,815 | $(415) | $13,220 | $174,620 |
| Line item | Level III Financial Liabilities at Fair Value Three Months Ended June 30, 2026 / Freestanding Derivatives | Level III Financial Liabilities at Fair Value Three Months Ended June 30, 2026 / Other Liabilities | Level III Financial Liabilities at Fair Value Three Months Ended June 30, 2026 / Total | Level III Financial Liabilities at Fair Value Three Months Ended June 30, 2025 / Freestanding Derivatives | Level III Financial Liabilities at Fair Value Three Months Ended June 30, 2025 / Other Liabilities | Level III Financial Liabilities at Fair Value Three Months Ended June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- |
| Balance, Beginning of Period | $1,149,255 | $2,454 | $1,151,709 | $1,026,297 | $1,308 | $1,027,605 |
| Changes in Losses (Gains) Included in Earnings | 2,806 | (703) | 2,103 | 52,469 | (512) | 51,957 |
| Balance, End of Period | $1,152,061 | $1,751 | $1,153,812 | $1,078,766 | $796 | $1,079,562 |
| Changes in Unrealized Losses (Gains) Included in Earnings Related to Financial Liabilities Still Held at the Reporting Date | $2,806 | $(703) | $2,103 | $52,469 | $(512) | $51,957 |
| Line item | Level III Financial Liabilities at Fair Value Six Months Ended June 30, 2026 / Freestanding Derivatives | Level III Financial Liabilities at Fair Value Six Months Ended June 30, 2026 / Other Liabilities | Level III Financial Liabilities at Fair Value Six Months Ended June 30, 2026 / Total | Level III Financial Liabilities at Fair Value Six Months Ended June 30, 2025 / Freestanding Derivatives | Level III Financial Liabilities at Fair Value Six Months Ended June 30, 2025 / Other Liabilities | Level III Financial Liabilities at Fair Value Six Months Ended June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- |
| Balance, Beginning of Period | $1,124,147 | $597 | $1,124,744 | $938,216 | $872 | $939,088 |
| Changes in Losses (Gains) Included in Earnings | 27,914 | 1,154 | 29,068 | 140,550 | (76) | 140,474 |
| Balance, End of Period | $1,152,061 | $1,751 | $1,153,812 | $1,078,766 | $796 | $1,079,562 |
| Changes in Unrealized Losses (Gains) Included in Earnings Related to Financial Liabilities Still Held at the Reporting Date | $27,914 | $1,154 | $29,068 | $140,550 | $(76) | $140,474 |
(a) Represents freestanding derivatives, corporate treasury investments and Other Investments.
(b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities.
(c) For Freestanding Derivatives included within Other Investments, Settlements includes all ongoing contractual cash payments made or received over the life of the instrument.
40
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
8. Variable Interest Entities
Pursuant to GAAP consolidation guidance, Blackstone consolidates certain VIEs for which it is the primary beneficiary either directly or indirectly, through a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance-based fees. The investment strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds are similar, including loss of invested capital and loss of management fees and performance-based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers itself the sponsor of the applicable Blackstone Fund. Blackstone does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs other than its own capital commitments.
The assets of consolidated variable interest entities may only be used to settle obligations of these entities. In addition, there is no recourse to Blackstone for the consolidated VIEs’ liabilities.
Blackstone holds variable interests in certain VIEs which are not consolidated as it is determined that Blackstone is not the primary beneficiary. Blackstone’s involvement with such entities is in the form of direct and indirect equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets recognized by Blackstone relating to
non-consolidated
VIEs and any clawback obligation relating to previously distributed Performance Allocations. Blackstone’s maximum exposure to loss relating to
non-consolidated
VIEs was as follows:
| Line item | June 30,2026 | December 31,2025 |
| --- | --- | --- |
| Investments | $6,565,230 | $5,118,786 |
| Due from Affiliates | 220,883 | 344,342 |
| Potential Clawback Obligation | 42,255 | 42,291 |
| Maximum Exposure to Loss | $6,828,368 | $5,505,419 |
| Amounts Due to Non-Consolidated VIEs | $838 | $623 |
9. Repurchase Agreements
As of June 30, 2026 and December 31, 2025, Blackstone had pledged securities with a carrying value of $338.5 million and $289.2 million, respectively.
The following tables provide information regarding Blackstone’s Repurchase Agreements obligation by type of collateral pledged as of June 30, 2026 and December 31, 2025.
_June 30, 2026_
| | | | | | |
| --- | --- | --- | --- | --- | --- |
| | Remaining Contractual Maturity of the Agreements | | | | |
| | OvernightandContinuous | Up to30 Days | 30 - 90Days | Greaterthan90 Days | Total |
| Repurchase Agreements | | | | | |
| Loans | — | $233,372 | $76,230 | $28,920 | $338,522 |
| Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 10.“Offsetting of Assets and Liabilities” | | | | | $338,522 |
| Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 10.“Offsetting of Assets and Liabilities” | | | | | — |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
_December 31, 2025_
| | | | | | |
| --- | --- | --- | --- | --- | --- |
| | Remaining Contractual Maturity of the Agreements | | | | |
| | OvernightandContinuous | Up to 30Days | 30 - 90Days | Greaterthan 90Days | Total |
| Repurchase Agreements | | | | | |
| Loans | — | $103,835 | $176,196 | $9,187 | $289,218 |
| Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 10.“Offsetting of Assets and Liabilities” | | | | | $289,218 |
| Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 10.“Offsetting of Assets and Liabilities” | | | | | — |
10. Offsetting of Assets and Liabilities
The following tables present the offsetting of assets and liabilities as of June 30, 2026 and December 31, 2025:
_June 30, 2026_
| Line item | Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | Gross Amounts Not Offsetin the Statement of Financial Condition / Financial Instruments (a) | Gross Amounts Not Offsetin the Statement of Financial Condition / Cash Collateral Received | Net Amount |
| --- | --- | --- | --- | --- |
| Assets | | | | |
| Freestanding Derivatives | $158,251 | $106,633 | $33,069 | $18,549 |
_June 30, 2026_
| Line item | Gross and Net Amounts of Liabilities Presented in the Statementof Financial Condition | Gross Amounts Not Offsetin the Statement of Financial Condition / Financial Instruments (a) | Gross Amounts Not Offsetin the Statement of Financial Condition / Cash Collateral Pledged | Net Amount |
| --- | --- | --- | --- | --- |
| Liabilities | | | | |
| Freestanding Derivatives | $116,691 | $108,876 | $21 | $7,794 |
| Repurchase Agreements | 338,522 | 338,522 | — | — |
| | $455,213 | $447,398 | $21 | $7,794 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
_December 31, 2025_
| Line item | Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | Gross Amounts Not Offsetin the Statement of Financial Condition / Financial Instruments (a) | Gross Amounts Not Offsetin the Statement of Financial Condition / Cash Collateral Received | Net Amount |
| --- | --- | --- | --- | --- |
| Assets | | | | |
| Freestanding Derivatives | $147,337 | $110,792 | $26,421 | $10,124 |
_December 31, 2025_
| Line item | Gross and Net Amounts of Liabilities Presented in the Statementof Financial Condition | Gross Amounts Not Offsetin the Statement of Financial Condition / Financial Instruments (a) | Gross Amounts Not Offsetin the Statement of Financial Condition / Cash Collateral Pledged | Net Amount |
| --- | --- | --- | --- | --- |
| Liabilities | | | | |
| Freestanding Derivatives | $127,392 | $110,948 | $32 | $16,412 |
| Repurchase Agreements | 289,218 | 289,218 | — | — |
| | $416,610 | $400,166 | $32 | $16,412 |
(a) Amounts presented are inclusive of both legally enforceable master netting agreements and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net exposure to the Condensed Consolidated Statement of Financial Condition.
Freestanding Derivative liabilities and repurchase agreements are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Condensed Consolidated Statements of Financial Condition. The following table presents the components of Other Assets:
| Line item | June 30,2026 | December 31, 2025 |
| --- | --- | --- |
| Furniture, Equipment and Leasehold Improvements | $1,006,469 | $952,583 |
| Less: Accumulated Depreciation | (469,392) | (431,394) |
| Furniture, Equipment and Leasehold Improvements, Net | 537,077 | 521,189 |
| Prepaid Expenses | 238,968 | 315,338 |
| Freestanding Derivatives | 148,223 | 134,557 |
| Other | 72,238 | 186,635 |
| | $996,506 | $1,157,719 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Notional Pooling Arrangements
Blackstone has notional cash pooling arrangements with financial institutions for cash management purposes. These arrangements allow for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of June 30, 2026, the aggregate cash balance on deposit relating to the cash pooling arrangements was $1.1 billion, which was offset and reported net of the accompanying overdraft of $1.1 billion.
11. Borrowings
The following table presents each of Blackstone’s borrowings as of June 30, 2026 and December 31, 2025, as well as their carrying value and fair value. The borrowings are included in Loans Payable within the Condensed Consolidated Statements of Financial Condition. Each of the Senior Notes were issued at a discount through Blackstone Holdings Finance Co. L.L.C. or Blackstone Reg Finance Co. L.L.C., as applicable, both indirect subsidiaries of Blackstone. The Senior Notes accrue interest from the issue date thereof and pay interest in arrears on a semi-annual basis or annual basis.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Description | June 30, 2026 / Carrying Value | June 30, 2026 / Fair Value | December 31, 2025 / Carrying Value | December 31, 2025 / Fair Value |
| --- | --- | --- | --- | --- |
| Blackstone Operating Borrowings | | | | |
| Revolving Credit Facility (a) | $800,000 | $800,000 | — | — |
| Senior Notes (b) | | | | |
| 1.000%, Due 10/5/2026 | 692,091 | 682,161 | 711,022 | 696,585 |
| 3.150%, Due 10/2/2027 | 299,470 | 294,735 | 299,264 | 295,941 |
| 5.900%, Due 11/3/2027 | 598,275 | 610,080 | 597,667 | 619,068 |
| 1.625%, Due 8/5/2028 | 647,858 | 611,819 | 647,359 | 610,688 |
| 1.500%, Due 4/10/2029 | 693,792 | 656,955 | 713,034 | 673,772 |
| 2.500%, Due 1/10/2030 | 496,111 | 463,860 | 495,590 | 467,930 |
| 4.300%, Due 11/3/2030 | 594,979 | 588,990 | 594,461 | 600,162 |
| 1.600%, Due 3/30/2031 | 497,623 | 432,445 | 497,384 | 435,810 |
| 2.000%, Due 1/30/2032 | 792,398 | 686,624 | 791,761 | 689,088 |
| 2.550%, Due 3/30/2032 | 496,884 | 438,985 | 496,635 | 444,025 |
| 6.200%, Due 4/22/2033 | 893,636 | 950,058 | 893,266 | 975,870 |
| 3.500%, Due 6/1/2034 | 543,998 | 564,190 | 559,079 | 582,161 |
| 5.000%, Due 12/6/2034 | 741,931 | 737,468 | 741,552 | 757,718 |
| 4.950%, Due 2/15/2036 | 594,794 | 581,526 | 594,586 | 596,592 |
| 6.250%, Due 8/15/2042 | 240,243 | 254,955 | 240,076 | 264,443 |
| 5.000%, Due 6/15/2044 | 490,717 | 450,695 | 490,561 | 466,615 |
| 4.450%, Due 7/15/2045 | 345,077 | 290,367 | 344,996 | 302,855 |
| 4.000%, Due 10/2/2047 | 291,725 | 231,030 | 291,605 | 236,016 |
| 3.500%, Due 9/10/2049 | 392,905 | 279,476 | 392,808 | 286,888 |
| 2.800%, Due 9/30/2050 | 394,484 | 241,292 | 394,405 | 246,808 |
| 2.850%, Due 8/5/2051 | 543,728 | 334,400 | 543,643 | 345,164 |
| 3.200%, Due 1/30/2052 | 988,115 | 652,298 | 987,969 | 670,740 |
| | 13,070,834 | 11,834,409 | 12,318,723 | 11,264,939 |
| Borrowings of Consolidated | | | | |
| Blackstone Funds | | | | |
| Blackstone Fund Facilities (c) | 123,896 | 126,623 | 126,421 | 129,767 |
| | 123,896 | 126,623 | 126,421 | 129,767 |
| | $13,194,730 | $11,961,032 | $12,445,144 | $11,394,706 |
(a) Represents the Revolving Credit Facility of Blackstone, through Blackstone Holdings Finance Co. L.L.C. Interest on the borrowings is based on an adjusted Secured Overnight Finance Rate (“SOFR”) or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee of 0.06%. The margin above adjusted SOFR used to calculate interest on borrowings was 0.75%. The margin is subject to change based on Blackstone’s credit rating. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under management, each tested quarterly. As of June 30, 2026 and December 31, 2025, Blackstone had outstanding but undrawn letters of credit against the Revolving Credit Facility of $39.3 million. The amount Blackstone can draw from the Credit Facility is reduced by the undrawn letters of credit.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
(b) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy.
(c) Blackstone Fund Facilities represent borrowing facilities for the various consolidated Blackstone Funds that are used to meet liquidity and investing needs. Such borrowings have varying maturities and may be rolled over until a disposition or refinancing event. Borrowings bear interest at spreads to market rates or at stated fixed rates that can vary over the borrowing term.
Scheduled principal payments for borrowings as of June 30, 2026 were as follows:
| Line item | Blackstone Operating Borrowings | Borrowings of Consolidated Blackstone Funds | Total Borrowings |
| --- | --- | --- | --- |
| 2026 | $685,320 | — | $685,320 |
| 2027 | 900,000 | — | 900,000 |
| 2028 | 650,000 | — | 650,000 |
| 2029 | 685,320 | 117,817 | 803,137 |
| 2030 | 1,900,000 | 9,079 | 1,909,079 |
| Thereafter | 8,371,100 | — | 8,371,100 |
| | $13,191,740 | $126,896 | $13,318,636 |
12. Income Taxes
Blackstone’s net deferred tax assets relate primarily to basis differences resulting from a
step-up
in tax basis of certain assets at the time of its conversion to a corporation, as well as ongoing exchanges of units for common shares by founders and partners. As of June 30, 2026, Blackstone had a valuation allowance of $35.6 million recorded against deferred tax assets.
Blackstone is subject to examination by the U.S. Internal Revenue Service and other taxing authorities where Blackstone has significant business operations such as the United Kingdom, and various state and local jurisdictions such as New York State and New York City. The tax years under examination vary by jurisdiction. Blackstone does not expect the completion of these audits to have a material impact on its financial condition, but it may be material to operating results for a particular period, depending on the operating results for that period. Blackstone believes the liability established for unrecognized tax benefits is adequate in relation to the potential for additional assessments. It is reasonably possible that changes in the balance of unrecognized tax benefits may occur within the next twelve months; however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and the impact on Blackstone’s effective tax rate over the next twelve months.
As of June 30, 2026, the following are the major filing jurisdictions and their respective earliest open tax period subject to examination:
| Line item | $ | |
| --- | --- | --- |
| Jurisdiction | Year | |
| U.S. Federal | | 2022 |
| New York City | | 2009 |
| New York State | | 2019 |
| United Kingdom | | 2011 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
13. Earnings Per Share and Stockholders’ Equity
Earnings Per Share
Basic and diluted net income per share of common stock for the three and six months ended June 30, 2026 and 2025 was calculated as follows:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Net Income for Per Share of Common Stock Calculations | | | | |
| Net Income Attributable to Blackstone Inc., Basic and Diluted | $1,229,189 | $764,244 | $1,878,918 | $1,379,096 |
| Shares/Units Outstanding | | | | |
| Weighted-Average Shares of Common Stock Outstanding, Basic | 799,882,459 | 782,386,121 | 792,647,549 | 777,120,501 |
| Weighted-Average Shares of Unvested Deferred Restricted Common Stock | 14,976 | 15,116 | 489,524 | 326,667 |
| Weighted-Average Shares of Common Stock Outstanding, Diluted | 799,897,435 | 782,401,237 | 793,137,073 | 777,447,168 |
| Net Income Per Share of Common Stock | | | | |
| Basic | $1.54 | $0.98 | $2.37 | $1.77 |
| Diluted | $1.54 | $0.98 | $2.37 | $1.77 |
| Dividends Declared Per Share of Common Stock (a) | $1.16 | $0.93 | $2.65 | $2.37 |
(a) Dividends declared reflects the calendar date of the declaration for each distribution.
In computing the dilutive effect that the exchange of Blackstone Holdings Partnership Units would have on Net Income Per Share of Common Stock, Blackstone considered that net income available to holders of shares of common stock would increase due to the elimination of
non-controlling
interests in Blackstone Holdings, inclusive of any tax impact. The hypothetical conversion may be dilutive to the extent there is activity at the Blackstone Inc. level that has not previously been attributed to the
non-controlling
interests or if there is a change in tax rate as a result of a hypothetical conversion.
The following table summarizes the anti-dilutive securities for the three and six months ended June 30, 2026 and 2025:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Weighted-Average Blackstone Holdings Partnership Units | 444,174,696 | 447,849,475 | 444,629,540 | 449,037,044 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Share Repurchase Program
On July 16, 2024, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership Units. This authorization replaced Blackstone’s prior $2.0 billion repurchase authorization. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date.
During the three and six months ended June 30, 2026, Blackstone repurchased 0.2 million and 0.4 million shares of common stock, pursuant to its repurchase program, at a total cost of $24.0 million and $48.4 million, respectively. During the three and six months ended June 30, 2025, Blackstone repurchased 0.2 million and 0.4 million shares of common stock at a total cost of $27.8 million and $58.8 million, respectively. As of June 30, 2026, the amount remaining available for repurchases under the program was $1.6 billion.
Shares Eligible for Dividends and Distributions
As of June 30, 2026, the total shares of common stock and Blackstone Holdings Partnership Units entitled to participate in dividends and distributions were as follows:
| Line item | Shares/Units |
| --- | --- |
| Common Stock Outstanding | 752,601,287 |
| Unvested Participating Common Stock | 47,333,292 |
| Total Participating Common Stock | 799,934,579 |
| Participating Blackstone Holdings Partnership Units | 443,878,452 |
| | 1,243,813,031 |
14. Equity-Based Compensation
Blackstone has granted equity-based compensation awards to Blackstone’s senior managing directors,
non-partner
professionals,
non-professionals
and selected external advisers under Blackstone’s Amended and Restated 2007 Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for the granting of options, share appreciation rights or other share-based awards (shares, restricted shares, restricted shares of common stock, deferred restricted shares of common stock, phantom restricted shares of common stock or other share-based awards based in whole or in part on the fair value of shares of common stock or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January 1, 2026, Blackstone had the ability to grant 176,596,501 shares under the Equity Plan.
For the three and six months ended June 30, 2026, Blackstone recorded compensation expense of $354.6 million and $915.5 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $68.3 million and $124.5 million, respectively. For the three and six months ended June 30, 2025, Blackstone recorded compensation expense of $312.4 million and $783.4 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $67.5 million and $131.6 million, respectively.
As of June 30, 2026, there was $2.9 billion of estimated unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of 3.2 years.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Total vested and unvested outstanding shares, including common stock, Blackstone Holdings Partnership Units and deferred restricted shares of common stock, were 1,243,849,052 as of June 30, 2026. Total outstanding phantom shares were 99,274 as of June 30, 2026.
A summary of the status of Blackstone’s unvested equity-based awards as of June 30, 2026 and of changes during the period January 1, 2026 through June 30, 2026 is presented below:
| Unvested Shares/Units | Blackstone Holdings / Partnership Units | Blackstone Holdings / Weighted- Average Grant Date Fair Value | Blackstone Inc. / Equity Settled Awards / Deferred Restricted Sharesof Common Stock | Blackstone Inc. / Equity Settled Awards / Weighted- Average Grant Date Fair Value | Blackstone Inc. / Cash Settled Awards / Phantom Shares | Blackstone Inc. / Cash Settled Awards / Weighted- Average Grant Date Fair Value |
| --- | --- | --- | --- | --- | --- | --- |
| Balance, December 31, 2025 | 226,888 | $32.02 | 29,420,712 | $122.07 | 66,941 | $146.70 |
| Granted | — | — | 16,390,636 | 119.55 | 26,745 | 116.54 |
| Vested | (226,888) | 32.02 | (4,918,237) | 122.28 | (5,196) | 115.55 |
| Forfeited | — | — | (495,244) | 125.74 | (2,566) | 132.13 |
| Balance, June 30, 2026 | — | — | 40,397,867 | $121.07 | 85,924 | $116.94 |
15. Related Party Transactions
Affiliate Receivables and Payables
Due from Affiliates and Due to Affiliates consisted of the following:
| Line item | June 30, 2026 | December 31, 2025 |
| --- | --- | --- |
| Due from Affiliates | | |
| Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated Entities and Portfolio Companies | $4,676,440 | $5,047,814 |
| Due from Certain Non-Controlling Interest Holders and Blackstone Employees | 1,155,219 | 1,036,117 |
| Accrual for Potential Clawback of Previously Distributed Performance Allocations | 386,407 | 273,531 |
| | $6,218,066 | $6,357,462 |
| Line item | June 30, 2026 | December 31, 2025 |
| --- | --- | --- |
| Due to Affiliates | | |
| Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | $2,067,107 | $2,076,205 |
| Due to Non-Consolidated Entities | 193,312 | 237,983 |
| Due to Certain Non-Controlling Interest Holders and Blackstone Employees | 135,770 | 103,977 |
| Accrual for Potential Repayment of Previously Received Performance Allocations | 1,088,167 | 806,267 |
| | $3,484,356 | $3,224,432 |
4
9
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties
The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance allocation or incentive fee arrangements. As of June 30, 2026 and December 31, 2025, such investments aggregated $2.1 billion and $2.2 billion, respectively. Their share of the Net Income Attributable to Redeemable
Non-Controlling
and
Non-Controlling
Interests in Consolidated Entities aggregated to $50.4 million and $57.1 million for the three months ended June 30, 2026 and 2025, respectively, and $70.6 million and $104.6 million for the six months ended June 30, 2026 and 2025, respectively.
Contingent Repayment Guarantee
Blackstone and its personnel who have received Performance Allocation distributions have guaranteed payment on a several basis (subject to a cap) to the carry funds of any clawback obligation with respect to the excess Performance Allocation allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Allocations represents amounts previously paid to Blackstone Holdings and
non-controlling
interest holders that would need to be repaid to the Blackstone Funds if the carry funds were to be liquidated based on the fair value of their underlying investments as of June 30, 2026. See Note 16. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback).”
Tax Receivable Agreements
Blackstone used a portion of the proceeds from the IPO and other sales of shares to purchase interests in the predecessor businesses from the predecessor owners. In addition, holders of Blackstone Holdings Partnership Units may exchange their Blackstone Holdings Partnership Units for shares of Blackstone common stock on a
one-for-one
basis. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Blackstone Holdings and therefore reduce the amount of tax that Blackstone would otherwise be required to pay in the future.
Blackstone has entered into tax receivable agreements with each of the predecessor owners. In addition, others who acquire Blackstone Holdings Partnership Units, including senior managing directors, execute tax receivable agreements. The agreements provide for the payment by the corporate taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements.
Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will aggregate $2.1 billion over the next 15 years. The
after-tax
net present value of these estimated payments totals $724.2 million assuming a 15% discount rate and using Blackstone’s most recent projections relating to the estimated timing of the benefit to be received. Future payments under the tax receivable agreements in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreements are not conditioned upon continued ownership of Blackstone equity interests by the
pre-IPO
owners and the others mentioned above.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to shares of Blackstone common stock, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the date of the Condensed Consolidated Statement of Financial Condition, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Deferred Tax Asset Effects from Equity Transactions in the Supplemental Disclosure of
Non-Cash
Investing and Financing Activities in the Condensed Consolidated Statements of Cash Flows.
Other
Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis.
Additionally, please see Note 16. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a lending institution for certain loans held by employees.
16. Commitments and Contingencies
Commitments
Investment Commitments
Blackstone had $5.9 billion of investment commitments as of June 30, 2026 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments. The consolidated Blackstone funds had signed investment commitments of $891.1 million as of June 30, 2026, which includes $65.4 million of signed investment commitments for portfolio company acquisitions in the process of closing.
Contingencies
Guarantees
Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the ongoing business activities and/or acquisitions of their Portfolio Companies. There is no direct recourse to Blackstone to fulfill such obligations. To the extent that underlying funds are required to fulfill guarantee obligations, Blackstone’s invested capital in such funds is at risk. Total investments at risk in respect of guarantees extended by consolidated real estate funds was $18.7 million as of June 30, 2026.
The Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone Funds or for members’ capital contributions to Blackstone Europe LLP. The amount guaranteed as of June 30, 2026 was $77.9 million.
Strategic Ventures
In December 2022 and January 2023, Blackstone entered into
long-term
strategic ventures (“UC strategic ventures”) with the Regents of the University of California (“UC Investments”), an institutional investor that subscribed for $4.5 billion of Blackstone Real Estate Income Trust, Inc. (“BREIT”) Class I shares during the three months ended March 31, 2023. The UC strategic ventures provide a waterfall structure with UC Investments receiving an 11.25% target annualized net return on its $4.5 billion investment in BREIT shares and upside from its investment. This target return, while not guaranteed, is supported by a pledge by Blackstone of $1.1 billion of its holdings in BREIT as of the subscription dates, including any
appreciation or dividends received by Blackstone in respect thereof. Pursuant to the UC strategic ventures, Blackstone is entitled to receive
an incremental 5% cash payment from UC Investments on any returns received in excess of the target return.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In March 2025, Blackstone entered into a similar long-term strategic venture with an institutional investor as part of the investor’s investment of
€
1.0 billion in a vehicle managed in the Real Estate segment. The long-term strategic venture provides for a target return of 9.25% supported by a pledge by Blackstone of
€
200 million of its holdings in a related vehicle.
For each such arrangement, an asset or liability is recognized based on fair value with the maximum potential future obligation in respect of the target return capped at the fair value of the assets pledged by Blackstone in connection with the respective arrangement. As of June 30, 2026, across both arrangements, the fair value of the total assets pledged was $1.5 billion and the total liability recognized was $1.2 billion.
Litigation
Blackstone may from time to time be involved in litigation and claims incidental to the conduct of its business. Blackstone’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against Blackstone.
Blackstone accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, Blackstone does not have any unaccrued liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows.
In December 2017, eight pension plan members of the Kentucky Retirement System (“KRS”) filed a derivative lawsuit on behalf of KRS in Franklin County Circuit Court in Kentucky (the “Mayberry Action”). Plaintiffs alleged breaches of fiduciary duty and other violations of Kentucky law in connection with KRS’s investment in three hedge funds of funds, including a fund managed by Blackstone Alternative Asset Management L.P. (“BLP”). The suit named more than 30 defendants, including, among others, The Blackstone Group L.P. (now Blackstone Inc.); BLP; Stephen A. Schwarzman, as Chairman and CEO of Blackstone; and J. Tomilson Hill, as
then-CEO
of BLP (collectively, the “Blackstone Defendants”). In July 2020, the Kentucky Supreme Court directed the Circuit Court to dismiss the action for lack of standing.
In July 2020, the Kentucky Attorney General (the “AG”) filed its own action asserting substantially identical claims against largely the same defendants (the “July 2020 Action”).
In August 2022, KRS was ordered to disclose a 2021 report it commissioned to investigate the investment activities underlying the lawsuit. The report “did not find any violations of fiduciary duty or illegal activity by [BLP],” and quotes communications by KRS staff during the period of the investment recognizing that BLP was exceeding KRS’s returns benchmark, providing KRS with “far fewer negative months than any liquid market comparable,” and that BLP “[h]as killed it.”
In January 2021, certain former plaintiffs in the Mayberry Action filed a separate action (“Taylor I”) against the Blackstone Defendants and other defendants in the Mayberry Action, asserting substantially similar allegations as the AG’s July 2020 action did, but styled as a direct class action. Taylor I was removed to the U.S. District Court for the Eastern District of Kentucky and stayed pending the outcome of the AG’s July 2020 action.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In August 2021, a group of KRS members—including those that filed Taylor I—filed an action in Franklin County Circuit Court (“Taylor II”) substantially similar to Taylor I, against the Blackstone Defendants, other defendants named in the Mayberry Action, and other KRS officials. The Court denied most defendants’ motions to dismiss this action in May 2024. The Blackstone Defendants and the other fund manager defendants filed a petition for a writ of prohibition from that denial. In November 2024, the Kentucky Court of Appeals denied defendants’ writ of prohibition, and defendants appealed to the Kentucky Supreme Court. Taylor II is stayed pending review of this appeal.
In April 2021, the AG filed an action (the “Declaratory Judgment Action”) against BLP and the other fund manager defendants from the Mayberry Action in Franklin County Circuit Court, seeking a declaration that certain provisions in the subscription agreements with KRS violate the Kentucky Constitution.
In July 2021, BLP filed a
breach-of-contract
action against defendants affiliated with KRS, alleging that the Mayberry Action and the Declaratory Judgment Action breach the parties’ subscription agreements and seeking damages.
In January 2025, we and several other defendants
entered into a settlement agreement with KRS and the Commonwealth of Kentucky (the “Commonwealth”) that, subject to approval by the
Franklin County Circuit Court
and certain requirements, would have resolved all claims between the settling parties, and barred all claims against the Blackstone Defendants in
Taylor I and Taylor II
without any admission of wrongdoing. In May 2025, the Court declined to enter an approval order, holding that the Court’s approval is unnecessary and stating that the parties may settle as they see fit. Because an approval order was a condition to the settlement, the settlement agreement was terminated.
Effective June 12, 2026, the Blackstone Defendants reached a new settlement agreement with KRS and the Commonwealth for all outstanding claims in their respective lawsuits, and, on August 4, 2026, the Franklin Circuit Court granted dismissal of the Commonwealth’s claims against Blackstone in the July 2020 Action. As part of that agreement, on June 18, 2026, KRS and the Commonwealth filed an action in Franklin Circuit Court seeking a declaration that the Commonwealth and KRS have the authority to settle and release the Taylor claims, and, on July 20, 2026, filed a motion for summary judgment in that case. The settlement agreement also obligated the Blackstone Defendants to make an $18 million payment to KRS; an additional $6 million payment will follow if, pursuant to certain conditions and limitations, the Taylor claims are finally dismissed during the pendency of the Commonwealth’s efforts. Both of these payments will be covered by Blackstone’s insurance. The Taylor plaintiffs have filed various objections to the settlement, which are currently pending.
Our financial results for the quarter ended June 30, 2026 include an accrual for the estimated liability related to this matter.
Contingent
Obligations (Clawback)
Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone funds, which may have an interim clawback liability. The lives of the funds, including available contemplated extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at various points through 2038. Further extensions of such terms may be implemented under given circumstances.
For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of some of the funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Performance Allocation distributions with respect to such fund’s realized investments. The liability is based on the general partner’s net obligation to the fund assuming all remaining investments were realized as of the end of each reporting period at the fair value of the under
lyi
ng investments.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table presents the clawback obligations by segment:
| Segment | June 30, 2026 / Blackstone Holdings | June 30, 2026 / Current and Former Personnel (a) | June 30, 2026 / Total (b) | December 31, 2025 / Blackstone Holdings | December 31, 2025 / Current and Former Personnel (a) | December 31, 2025 / Total (b) |
| --- | --- | --- | --- | --- | --- | --- |
| Real Estate | $589,875 | $314,784 | $904,659 | $448,096 | $227,924 | $676,020 |
| Private Equity | 111,885 | 71,623 | 183,508 | 84,640 | 45,607 | 130,247 |
| | $701,760 | $386,407 | $1,088,167 | $532,736 | $273,531 | $806,267 |
(a) The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis.
(b) Total is a component of Due to Affiliates. See Note 15. “Related Party Transactions — Affiliate Receivables and Payables — Due to Affiliates.”
For Private Equity, Real Estate, and certain Credit & Insurance Funds, a portion of the Performance Allocations paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the condensed consolidated financial statements of Blackstone, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At June 30, 2026, $1.3 billion was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required.
In the Credit & Insurance segment, payment of Performance Allocations to Blackstone by the majority of the stressed/distressed, mezzanine and credit alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated accounts in the event of a cash clawback obligation.
If, at June 30, 2026, all of the investments held by Blackstone’s carry funds were deemed worthless, a possibility that management views as remote, the amount of Performance Allocations subject to potential clawback would be $9.1 billion, on an
after-tax
basis where applicable, of which Blackstone Holdings is potentially liable for $8.2 billion if current and former Blackstone personnel default on their share of the liability, a possibility that management also views as remote.
17. Segment Reporting
Blackstone conducts its alternative asset management businesses through four segments:
- Real Estate – Blackstone’s Real Estate segment primarily comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies.
- Private Equity – Blackstone’s Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically-focused Corporate Private Equity funds, Core Private Equity funds, an opportunistic investment platform, a secondary funds business and GP Stakes, infrastructure-focused funds, a life sciences investment platform, a growth equity investment platform, investment platforms offering eligible individual investors access to Blackstone’s private equity and infrastructure capabilities, a multi-asset investment program for eligible high-net-worth investors and a capital markets services business.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
- Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset based credit. In addition, the segment includes an insurer-focused platform.
- Multi-Asset Investing – Blackstone’s Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
These business segments are differentiated by their various investment strategies. Each of the segments primarily earns its income from management fees and investment returns on assets under management. Blackstone’s chief operating decision makers are its Chief Executive Officer and
Co-Founder
and its President and Chief Operating Officer.
Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments.
Segment Distributable Earnings represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates
non-controlling
ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related and
Non-Recurring
Items. Transaction-Related and
Non-Recurring
Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and
non-recurring
gains, losses, or other charges, if any. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs, gains or losses associated with these corporate actions and
non-recurring
gains, losses or other charges that affect
period-to-period
comparability and are not reflective of Blackstone’s operational performance.
For segment reporting purposes, Segment Distributable Earnings is presented along with its major components, Fee Related Earnings and Net Realizations. Fee Related Earnings is used to assess Blackstone’s ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. Net Realizations is the sum of Realized Principal Investment Income and Realized Performance Revenues less Realized Performance Compensation. Performance Allocations and Incentive Fees are presented together and referred to collectively as Performance Revenues or Performance Compensation.
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Segment Presentation
The following tables present the financial data for Blackstone’s four segments for the three months ended June 30, 2026 and 2025:
_Three Months Ended June 30, 2026_
| Line item | Real Estate | Private Equity | Credit &Insurance | Multi-Asset Investing | Total Segments |
| --- | --- | --- | --- | --- | --- |
| Management and Advisory Fees, Net | | | | | |
| Base Management Fees | $630,097 | $681,444 | $493,622 | $155,734 | $1,960,897 |
| Transaction, Advisory and Other Fees, Net | 104,321 | 124,921 | 91,769 | 145 | 321,156 |
| Management Fee Offsets | (7,337) | (11,785) | (12,635) | — | (31,757) |
| Total Management and Advisory Fees, Net | 727,081 | 794,580 | 572,756 | 155,879 | 2,250,296 |
| Fee Related Performance Revenues | 242,718 | 391,387 | 159,286 | — | 793,391 |
| Fee Related Compensation | (262,168) | (337,528) | (237,568) | (42,865) | (880,129) |
| Other Operating Expenses | (94,624) | (131,515) | (124,404) | (29,587) | (380,130) |
| Fee Related Earnings | 613,007 | 716,924 | 370,070 | 83,427 | 1,783,428 |
| Realized Performance Revenues | 210,868 | 490,807 | 11,540 | 17,670 | 730,885 |
| Realized Performance Compensation | (85,259) | (251,204) | (3,746) | (3,915) | (344,124) |
| Realized Principal Investment Income (Loss) | 6,660 | 24,952 | (4,622) | 509 | 27,499 |
| Total Net Realizations | 132,269 | 264,555 | 3,172 | 14,264 | 414,260 |
| Total Segment Distributable Earnings | $745,276 | $981,479 | $373,242 | $97,691 | $2,197,688 |
| Segment Assets | $13,882,665 | $20,653,736 | $7,825,978 | $2,708,734 | $45,071,113 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
_Three Months Ended June 30, 2025_
| Line item | Real / Estate | Private / Equity | Credit & / Insurance | Multi-Asset / Investing | Total / Segments |
| --- | --- | --- | --- | --- | --- |
| Management and Advisory Fees, Net | | | | | |
| Base Management Fees | $673,154 | $605,068 | $467,657 | $130,793 | $1,876,672 |
| Transaction, Advisory and Other Fees, Net | 41,720 | 108,988 | 13,980 | 1,002 | 165,690 |
| Management Fee Offsets | (3,582) | (7,758) | (11,010) | — | (22,350) |
| Total Management and Advisory Fees, Net | 711,292 | 706,298 | 470,627 | 131,795 | 2,020,012 |
| Fee Related Performance Revenues | 89,590 | 192,331 | 190,129 | — | 472,050 |
| Fee Related Compensation | (170,209) | (266,925) | (220,305) | (42,877) | (700,316) |
| Other Operating Expenses | (87,048) | (112,300) | (107,426) | (25,469) | (332,243) |
| Fee Related Earnings | 543,625 | 519,404 | 333,025 | 63,449 | 1,459,503 |
| Realized Performance Revenues | 43,587 | 408,980 | 87,393 | 13,161 | 553,121 |
| Realized Performance Compensation | (24,139) | (196,824) | (30,433) | (5,228) | (256,624) |
| Realized Principal Investment Income | 2,797 | 19,859 | 5,800 | 965 | 29,421 |
| Total Net Realizations | 22,245 | 232,015 | 62,760 | 8,898 | 325,918 |
| Total Segment Distributable Earnings | $565,870 | $751,419 | $395,785 | $72,347 | $1,785,421 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following tables present the financial data for Blackstone’s four segments as of June 30, 2026 and for the six months ended June 30, 2026 and 2025:
_June 30, 2026 and the Six Months Then Ended_
| Line item | Real / Estate | Private / Equity | Credit & / Insurance | Multi-Asset / Investing | Total / Segments |
| --- | --- | --- | --- | --- | --- |
| Management and Advisory Fees, Net | | | | | |
| Base Management Fees | $1,266,144 | $1,341,435 | $1,003,469 | $302,263 | $3,913,311 |
| Transaction, Advisory and Other Fees, Net | 156,059 | 275,859 | 102,397 | (1,462) | 532,853 |
| Management Fee Offsets | (17,645) | (20,792) | (24,623) | — | (63,060) |
| Total Management and Advisory Fees, Net | 1,404,558 | 1,596,502 | 1,081,243 | 300,801 | 4,383,104 |
| Fee Related Performance Revenues | 395,716 | 562,084 | 323,689 | — | 1,281,489 |
| Fee Related Compensation | (455,305) | (600,341) | (464,061) | (89,892) | (1,609,599) |
| Other Operating Expenses | (184,824) | (244,443) | (238,967) | (55,351) | (723,585) |
| Fee Related Earnings | 1,160,145 | 1,313,802 | 701,904 | 155,558 | 3,331,409 |
| Realized Performance Revenues | 252,942 | 1,128,796 | 89,666 | 39,975 | 1,511,379 |
| Realized Performance Compensation | (108,215) | (545,740) | (34,943) | (19,282) | (708,180) |
| Realized Principal Investment Income (Loss) | (2,145) | 70,300 | (10,327) | 1,644 | 59,472 |
| Total Net Realizations | 142,582 | 653,356 | 44,396 | 22,337 | 862,671 |
| Total Segment Distributable Earnings | $1,302,727 | $1,967,158 | $746,300 | $177,895 | $4,194,080 |
| Segment Assets | $13,882,665 | $20,653,736 | $7,825,978 | $2,708,734 | $45,071,113 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
_Six Months Ended June 30, 2025_
| Line item | Real / Estate | Private / Equity | Credit & / Insurance | Multi-Asset / Investing | Total / Segments |
| --- | --- | --- | --- | --- | --- |
| Management and Advisory Fees, Net | | | | | |
| Base Management Fees | $1,337,755 | $1,183,512 | $910,880 | $251,644 | $3,683,791 |
| Transaction, Advisory and Other Fees, Net | 81,866 | 163,208 | 29,460 | 2,465 | 276,999 |
| Management Fee Offsets | (7,481) | (18,630) | (22,669) | — | (48,780) |
| Total Management and Advisory Fees, Net | 1,412,140 | 1,328,090 | 917,671 | 254,109 | 3,912,010 |
| Fee Related Performance Revenues | 127,393 | 253,235 | 385,337 | — | 765,965 |
| Fee Related Compensation | (340,734) | (470,244) | (421,923) | (84,397) | (1,317,298) |
| Other Operating Expenses | (170,329) | (215,194) | (203,704) | (49,891) | (639,118) |
| Fee Related Earnings | 1,028,470 | 895,887 | 677,381 | 119,821 | 2,721,559 |
| Realized Performance Revenues | 62,597 | 759,053 | 178,990 | 12,504 | 1,013,144 |
| Realized Performance Compensation | (32,909) | (367,965) | (70,928) | (5,746) | (477,548) |
| Realized Principal Investment Income | 3,146 | 29,035 | 113,703 | 1,447 | 147,331 |
| Total Net Realizations | 32,834 | 420,123 | 221,765 | 8,205 | 682,927 |
| Total Segment Distributable Earnings | $1,061,304 | $1,316,010 | $899,146 | $128,026 | $3,404,486 |
Reconciliations of Total Segment Amounts
The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the three and six months ended June 30, 2026 and 2025 along with Total Assets as of June 30, 2026:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Revenues | | | | |
| Total GAAP Revenues | $5,043,978 | $3,711,900 | $8,661,573 | $7,001,358 |
| Less: Unrealized Performance Revenues (a) | (587,150) | (313,256) | (870,505) | (576,457) |
| Less: Unrealized Principal Investment Income (b) | (443,186) | (294,093) | (121,050) | (455,350) |
| Less: Interest and Dividend Revenue (c) | (134,224) | (100,390) | (242,164) | (197,810) |
| Less: Other Revenue (d) | (11,898) | 225,083 | (62,826) | 298,718 |
| Impact of Consolidation (e) | (65,536) | (154,450) | (129,749) | (231,574) |
| Transaction-Related and Non-Recurring Items (f) | (48) | (347) | (94) | (747) |
| Intersegment Eliminations | 135 | 157 | 259 | 312 |
| Total Segment Revenue (g) | $3,802,071 | $3,074,604 | $7,235,444 | $5,838,450 |
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Expenses | | | | |
| Total GAAP Expenses | $2,375,612 | $1,932,603 | $4,637,905 | $3,827,035 |
| Less: Unrealized Performance Allocations Compensation (h) | (236,129) | (152,618) | (325,830) | (256,177) |
| Less: Equity-Based Compensation (i) | (353,753) | (312,018) | (914,970) | (783,320) |
| Less: Interest Expense (j) | (144,830) | (125,033) | (274,888) | (242,983) |
| Impact of Consolidation (e) | (24,819) | (31,735) | (50,410) | (57,987) |
| Amortization of Intangibles (k) | (7,288) | (7,333) | (14,576) | (14,666) |
| Transaction-Related and Non-Recurring Items (f) | (119) | (10,728) | (7,132) | (29,952) |
| Administrative Fee Adjustment (l) | (4,426) | (4,112) | (8,994) | (8,298) |
| Intersegment Eliminations | 135 | 157 | 259 | 312 |
| Total Segment Expenses (m) | $1,604,383 | $1,289,183 | $3,041,364 | $2,433,964 |
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Other Income | | | | |
| Total GAAP Other Income (Loss) | $140,086 | $136,330 | $239,841 | $193,905 |
| Impact of Consolidation (e) | (140,086) | (136,330) | (239,841) | (193,905) |
| Total Segment Other Income | — | — | — | — |
60
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Income Before Provision for Taxes | | | | |
| Total GAAP Income Before Provision for Taxes | $2,808,452 | $1,915,627 | $4,263,509 | $3,368,228 |
| Less: Unrealized Performance Revenues (a) | (587,150) | (313,256) | (870,505) | (576,457) |
| Less: Unrealized Principal Investment Income (b) | (443,186) | (294,093) | (121,050) | (455,350) |
| Less: Interest and Dividend Revenue (c) | (134,224) | (100,390) | (242,164) | (197,810) |
| Less: Other Revenue (d) | (11,898) | 225,083 | (62,826) | 298,718 |
| Plus: Unrealized Performance Allocations Compensation (h) | 236,129 | 152,618 | 325,830 | 256,177 |
| Plus: Equity-Based Compensation (i) | 353,753 | 312,018 | 914,970 | 783,320 |
| Plus: Interest Expense (j) | 144,830 | 125,033 | 274,888 | 242,983 |
| Impact of Consolidation (e) | (180,803) | (259,045) | (319,180) | (367,492) |
| Amortization of Intangibles (k) | 7,288 | 7,333 | 14,576 | 14,666 |
| Transaction-Related and Non-Recurring Items (f) | 71 | 10,381 | 7,038 | 29,205 |
| Administrative Fee Adjustment (l) | 4,426 | 4,112 | 8,994 | 8,298 |
| Total Segment Distributable Earnings | $2,197,688 | $1,785,421 | $4,194,080 | $3,404,486 |
| Line item | $ / As of / June 30, | As of / June 30, |
| --- | --- | --- |
| | 2026 | |
| Total Assets | | |
| Total GAAP Assets | $ | $49,892,220 |
| Impact of Consolidation (e) | | (4,821,107) |
| Total Segment Assets | $ | $45,071,113 |
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related and
Non-Recurring
Items.
(a) This adjustment removes Unrealized Performance Revenues on a segment basis.
(b) This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis.
(c) This adjustment removes Interest and Dividend Revenue on a segment basis.
(d) This adjustment removes Other Revenue on a segment basis. For the three months ended June 30, 2026 and 2025, Other Revenue on a GAAP basis was $11.9 million and $(225.1) million, and included $11.8 million and $(225.5) million of foreign exchange gains (losses), respectively. For the six months ended June 30, 2026 and 2025, Other Revenue on a GAAP basis was $62.9 million and $(298.7) million, and included $62.5 million and $(299.3) million of foreign exchange gains (losses), respectively.
(e) This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the removal of amounts attributable to the reimbursement of certain expenses by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and Advisory Fees, Net in the Total Segment measures, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
61
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
(f) This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains, losses, or other charges, if any. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs, gains or losses associated with these corporate actions and non-recurring gains, losses or other charges that affect period to period comparability and are not reflective of Blackstone’s operational performance.
(g) Total Segment Revenues is comprised of the following:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Total Segment Management and Advisory Fees, Net | $2,250,296 | $2,020,012 | $4,383,104 | $3,912,010 |
| Total Segment Fee Related Performance Revenues | 793,391 | 472,050 | 1,281,489 | 765,965 |
| Total Segment Realized Performance Revenues | 730,885 | 553,121 | 1,511,379 | 1,013,144 |
| Total Segment Realized Principal Investment Income | 27,499 | 29,421 | 59,472 | 147,331 |
| Total Segment Revenues | $3,802,071 | $3,074,604 | $7,235,444 | $5,838,450 |
(h) This adjustment removes Unrealized Performance Allocations Compensation.
(i) This adjustment removes Equity-Based Compensation on a segment basis.
(j) This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement.
(k) This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation.
(l) This adjustment adds an amount equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.
(m) Total Segment Expenses is comprised of the following:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Total Segment Fee Related Compensation | $880,129 | $700,316 | $1,609,599 | $1,317,298 |
| Total Segment Realized Performance Compensation | 344,124 | 256,624 | 708,180 | 477,548 |
| Total Segment Other Operating Expenses | 380,130 | 332,243 | 723,585 | 639,118 |
| Total Segment Expenses | $1,604,383 | $1,289,183 | $3,041,364 | $2,433,964 |
62
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Reconciliations of Total Segment Components
The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025:
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Management and Advisory Fees, Net | | | | |
| GAAP | $2,266,006 | $2,035,495 | $4,414,626 | $3,939,812 |
| Segment Adjustment (a) | (15,710) | (15,483) | (31,522) | (27,802) |
| Total Segment | $2,250,296 | $2,020,012 | $4,383,104 | $3,912,010 |
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues | | | | |
| GAAP | | | | |
| Incentive Fees | $159,080 | $195,414 | $324,499 | $387,239 |
| Investment Income - Realized Performance Allocations | 1,365,175 | 829,820 | 2,468,348 | 1,391,870 |
| GAAP | 1,524,255 | 1,025,234 | 2,792,847 | 1,779,109 |
| Total Segment | | | | |
| Less: Realized Performance Revenues | (730,885) | (553,121) | (1,511,379) | (1,013,144) |
| Segment Adjustment (b) | 21 | (63) | 21 | — |
| Total Segment | $793,391 | $472,050 | $1,281,489 | $765,965 |
6
3
---
Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP Compensation to Total Segment Fee Related Compensation | | | | |
| GAAP | | | | |
| Compensation | $963,026 | $870,358 | $2,129,923 | $1,899,720 |
| Incentive Fee Compensation | 49,716 | 67,363 | 104,084 | 124,392 |
| Realized Performance Allocations Compensation | 565,264 | 331,191 | 998,713 | 573,081 |
| GAAP | 1,578,006 | 1,268,912 | 3,232,720 | 2,597,193 |
| Total Segment | | | | |
| Less: Realized Performance Compensation | (344,124) | (256,624) | (708,180) | (477,548) |
| Less: Equity-Based Compensation - Fee Related Compensation | (345,343) | (306,495) | (895,046) | (770,548) |
| Less: Equity-Based Compensation - Performance Compensation | (8,410) | (5,523) | (19,924) | (12,772) |
| Segment Adjustment (c) | — | 46 | 29 | (19,027) |
| Total Segment | $880,129 | $700,316 | $1,609,599 | $1,317,298 |
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP General, Administrative and Other to Total Segment Other Operating Expenses | | | | |
| GAAP | $409,110 | $360,817 | $781,931 | $693,190 |
| Segment Adjustment (d) | (28,980) | (28,574) | (58,346) | (54,072) |
| Total Segment | $380,130 | $332,243 | $723,585 | $639,118 |
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Realized Performance Revenues | | | | |
| GAAP | | | | |
| Incentive Fees | $159,080 | $195,414 | $324,499 | $387,239 |
| Investment Income - Realized Performance Allocations | 1,365,175 | 829,820 | 2,468,348 | 1,391,870 |
| GAAP | 1,524,255 | 1,025,234 | 2,792,847 | 1,779,109 |
| Total Segment | | | | |
| Less: Fee Related Performance Revenues | (793,391) | (472,050) | (1,281,489) | (765,965) |
| Segment Adjustment (b) | 21 | (63) | 21 | — |
| Total Segment | $730,885 | $553,121 | $1,511,379 | $1,013,144 |
6
4
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Realized Performance Compensation | | | | |
| GAAP | | | | |
| Incentive Fee Compensation | $49,716 | $67,363 | $104,084 | $124,392 |
| Realized Performance Allocation Compensation | 565,264 | 331,191 | 998,713 | 573,081 |
| GAAP | 614,980 | 398,554 | 1,102,797 | 697,473 |
| Total Segment | | | | |
| Less: Fee Related Performance Compensation (e) | (262,446) | (136,407) | (374,693) | (207,153) |
| Less: Equity-Based Compensation - Performance Compensation | (8,410) | (5,523) | (19,924) | (12,772) |
| Total Segment | $344,124 | $256,624 | $708,180 | $477,548 |
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Realized Principal Investment Income | | | | |
| GAAP | $105,585 | $97,171 | $248,605 | $282,713 |
| Segment Adjustment (f) | (78,086) | (67,750) | (189,133) | (135,382) |
| Total Segment | $27,499 | $29,421 | $59,472 | $147,331 |
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related and
Non-Recurring
Items.
(a) Represents (1) the add back of net management fees earned from consolidated Blackstone funds which have been eliminated in consolidation, and (2) the removal of amounts attributable to the reimbursement of certain expenses by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and Advisory Fees, Net in the Total Segment measures.
(b) Represents the add back of Performance Revenues earned from consolidated Blackstone funds which have been eliminated in consolidation.
(c) Represents the removal of Transaction-Related and Non-Recurring Items that are not recorded in the Total Segment measures.
(d) Represents the (1) removal of Transaction-Related and Non-Recurring Items that are not recorded in the Total Segment measures, (2) removal of amounts attributable to certain expenses that are reimbursed by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and Advisory Fees, Net in the Total Segment measures, and (3) a reduction equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units which is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.
(e) Fee related performance compensation may include equity-based compensation based on fee related performance revenues.
(f) Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
6
5
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Blackstone Inc.
Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
18. Subsequent Events
There have been
no events since June 30, 2026 that require recognition or disclosure in the condensed consolidated financial statements.
66
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## Item 1A. Unaudited Supplemental Presentation of Statements of Financial Condition
Blackstone Inc.
Unaudited Consolidating Statements of Financial Condition
(Dollars in Thousands)
_June 30, 2026_
| Line item | Consolidated Operating Partnerships | Consolidated Blackstone Funds (a) | Reclasses and Eliminations | Consolidated |
| --- | --- | --- | --- | --- |
| Assets | | | | |
| Cash and Cash Equivalents | $2,507,073 | — | — | $2,507,073 |
| Cash Held by Blackstone Funds and Other | — | 266,230 | — | 266,230 |
| Investments | 30,308,780 | 5,233,815 | (954,866) | 34,587,729 |
| Accounts Receivable | 689,778 | 2,277 | — | 692,055 |
| Due from Affiliates | 5,948,781 | 336,435 | (67,150) | 6,218,066 |
| Intangible Assets, Net | 113,288 | — | — | 113,288 |
| Goodwill | 1,890,202 | — | — | 1,890,202 |
| Other Assets | 992,140 | 4,366 | — | 996,506 |
| Right-of-Use Assets | 743,127 | — | — | 743,127 |
| Deferred Tax Assets | 1,877,944 | — | — | 1,877,944 |
| Total Assets | $45,071,113 | $5,843,123 | $(1,022,016) | $49,892,220 |
| Liabilities and Equity | | | | |
| Loans Payable | $13,070,834 | $123,896 | — | $13,194,730 |
| Due to Affiliates | 3,339,203 | 214,676 | (69,523) | 3,484,356 |
| Accrued Compensation and Benefits | 6,844,156 | — | — | 6,844,156 |
| Operating Lease Liabilities | 832,586 | — | — | 832,586 |
| Accounts Payable, Accrued Expenses and Other Liabilities | 3,036,983 | 66,181 | — | 3,103,164 |
| Total Liabilities | 27,123,762 | 404,753 | (69,523) | 27,458,992 |
| Redeemable Non-Controlling Interests in Consolidated Entities | 7 | 1,371,076 | — | 1,371,083 |
| Equity | | | | |
| Common Stock | 7 | — | — | 7 |
| Series I Preferred Stock | — | — | — | — |
| Series II Preferred Stock | — | — | — | — |
| Additional Paid-in-Capital | 9,051,771 | 926,548 | (926,548) | 9,051,771 |
| Retained Earnings (Deficit) | (18,646) | 25,945 | (25,945) | (18,646) |
| Accumulated Other Comprehensive Income (Loss) | (51,511) | 32,922 | — | (18,589) |
| Non-Controlling Interests in Consolidated Entities | 4,022,412 | 3,081,879 | — | 7,104,291 |
| Non-Controlling Interests in Blackstone Holdings | 4,943,311 | — | — | 4,943,311 |
| Total Equity | 17,947,344 | 4,067,294 | (952,493) | 21,062,145 |
| Total Liabilities and Equity | $45,071,113 | $5,843,123 | $(1,022,016) | $49,892,220 |
67
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Blackstone Inc.
Unaudited Consolidating Statements of Financial Condition - Continued
(Dollars in Thousands)
_December 31, 2025_
| Line item | Consolidated Operating Partnerships | Consolidated Blackstone Funds (a) | Reclasses and Eliminations | Consolidated |
| --- | --- | --- | --- | --- |
| Assets | | | | |
| Cash and Cash Equivalents | $2,631,241 | — | — | $2,631,241 |
| Cash Held by Blackstone Funds and Other | — | 223,441 | — | 223,441 |
| Investments | 28,046,783 | 5,180,879 | (1,015,551) | 32,212,111 |
| Accounts Receivable | 275,370 | 16,388 | — | 291,758 |
| Due from Affiliates | 6,055,038 | 367,387 | (64,963) | 6,357,462 |
| Intangible Assets, Net | 131,359 | — | — | 131,359 |
| Goodwill | 1,890,202 | — | — | 1,890,202 |
| Other Assets | 1,143,014 | 14,705 | — | 1,157,719 |
| Right-of-Use Assets | 757,459 | — | — | 757,459 |
| Deferred Tax Assets | 2,056,223 | — | — | 2,056,223 |
| Total Assets | $42,986,689 | $5,802,800 | $(1,080,514) | $47,708,975 |
| Liabilities and Equity | | | | |
| Loans Payable | $12,318,723 | $126,421 | — | $12,445,144 |
| Due to Affiliates | 3,046,459 | 245,222 | (67,249) | 3,224,432 |
| Accrued Compensation and Benefits | 6,411,389 | — | — | 6,411,389 |
| Operating Lease Liabilities | 861,021 | — | — | 861,021 |
| Accounts Payable, Accrued Expenses and Other Liabilities | 2,826,821 | 58,996 | — | 2,885,817 |
| Total Liabilities | 25,464,413 | 430,639 | (67,249) | 25,827,803 |
| Redeemable Non-Controlling Interests in Consolidated Entities | 5 | 1,380,498 | — | 1,380,503 |
| Equity | | | | |
| Common Stock | 7 | — | — | 7 |
| Series I Preferred Stock | — | — | — | — |
| Series II Preferred Stock | — | — | — | — |
| Additional Paid-in-Capital | 8,479,886 | 992,063 | (992,063) | 8,479,886 |
| Retained Earnings | 191,641 | 21,202 | (21,202) | 191,641 |
| Accumulated Other Comprehensive Income (Loss) | (53,272) | 47,264 | — | (6,008) |
| Non-Controlling Interests in Consolidated Entities | 4,293,077 | 2,931,134 | — | 7,224,211 |
| Non-Controlling Interests in Blackstone Holdings | 4,610,932 | — | — | 4,610,932 |
| Total Equity | 17,522,271 | 3,991,663 | (1,013,265) | 20,500,669 |
| Total Liabilities and Equity | $42,986,689 | $5,802,800 | $(1,080,514) | $47,708,975 |
(a) The Consolidated Blackstone Funds consisted of the following:
Blackstone Horizon Fund L.P.
BTD CP Holdings LP
Blackstone European Property Income Fund (Master) FCP
Blackstone European Property Income Fund SICAV
BEPIF (Aggregator) SCSp
Infrastructure Investments L.P.
Blackstone Chengu (Shanghai) Private Fund Partnership
Hieroglyphs L.P.**
Blackstone Multi-Strategy Hedge Fund L.P.
Blackstone Quantitative Opportunities Fund Ltd.
Blue Horizon L.P.*
Capitol Gardens II L.P.*
Private equity
side-by-side
investment vehicles
Real estate
side-by-side
investment vehicles
* Consolidated as of June 30, 2026 only
** Consolidated as of December 31, 2025 only
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#####
## 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 investment fund structures, we receive a contractual incentive fee from the 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 business units we operate. Net investment gains and investment income generated by Blackstone Funds are driven by the performance of underlying investments in such funds as well as overall market conditions. Fair values are affected by changes in the fundamentals of our funds’ 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 and 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, well-located assets 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.
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Our Core+ real estate strategy invests in substantially stabilized real estate globally, primarily through perpetual capital vehicles. The strategy includes our (a) Blackstone Property Partners (“BPP”) funds, which are focused on high-quality assets in the Americas, Europe and Asia, (b) a non-listed real estate investment trust (“REIT”), Blackstone Real Estate Income Trust, Inc. (“BREIT”) and Blackstone European Property Income Fund (“BEPIF”) vehicles, which provide income-focused individual investors access to institutional quality real estate primarily in the Americas and Europe, respectively, and (c) a NYSE-listed REIT focused on acquiring and owning data centers, Blackstone Digital Infrastructure Trust (“BXDC”).
Our Blackstone Real Estate Debt Strategies (“BREDS”) platform primarily targets real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate mortgage loans and liquid real estate-related debt securities. The BREDS platform includes high-yield real estate debt funds, liquid real estate debt funds, capital managed on behalf of our Credit & Insurance segment, and Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed mortgage REIT.
### Private Equity
Our Private Equity segment includes: (a) Private Equity Strategies (described below), (b) Infrastructure, which includes (1) our infrastructure-focused funds for institutional investors with a primary focus on the U.S. and Europe (Blackstone Infrastructure Partners or “BIP”) and (2) a private wealth-focused platform offering eligible individual investors access to our infrastructure capabilities (Blackstone Infrastructure Strategies or “BXINFRA”), (c) our secondaries business (“Secondaries”), which includes Strategic Partners Fund Solutions (“Strategic Partners”) and our GP Stakes business (“Blackstone GP Stakes” or “BXGP”), (d) our capital markets services business (Blackstone Capital Markets or “BXCM”) and (e) a private wealth-focused platform offering eligible individuals exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment (Blackstone Total Alternatives Solution or “BTAS”).
Our Private Equity Strategies include: (a) our Corporate Private Equity business (described below), (b) our hybrid capital investment platform that invests flexibly across asset classes, industries and geographies (Blackstone Tactical Opportunities or “Tactical Opportunities”), (c) our life sciences investment platform (Blackstone Life Sciences or “BXLS”), (d) our growth equity investment platform (Blackstone Growth or “BXG”) and (e) a private wealth-focused platform offering eligible individual investors access to Blackstone’s private equity capabilities (Blackstone Private Equity Strategies Fund or “BXPE”).
Our Corporate Private Equity business consists of: (a) our global private equity funds (Blackstone Capital Partners or “BCP”), (b) our Asia-focused private equity funds (Blackstone Capital Partners Asia or “BCP Asia”), (c) our sector-focused funds, including our energy- and energy transition-focused funds (Blackstone Energy Transition Partners or “BETP”) and (d) our core private equity funds (Blackstone Core Equity Partners or “BCEP”).
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.
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Tactical Opportunities pursues a thematically driven, hybrid capital 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.
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 Blackstone’s private equity talent and investment capabilities to create an attractive portfolio of alternative investments diversified across geographies and sectors.
BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure, transportation, digital infrastructure and water and waste. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. BXINFRA invests primarily in infrastructure equity, secondaries and credit strategies, leveraging Blackstone’s infrastructure talent and investment capabilities to create an attractive portfolio of alternative infrastructure investments.
Strategic Partners is a total fund solutions provider. As a secondary investor, it acquires interests in high-quality private funds from original holders seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and growth capital, credit and other types of funds, as well as general partner-led transactions and primary investments and co-investments with financial sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments in private funds and co-investments. Blackstone GP Stakes targets minority investments in the general partners of private equity and other private market alternative asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation.
### Credit & Insurance
Our Credit & Insurance segment (“BXCI”) offers its clients and borrowers a comprehensive solution across corporate and asset based credit, including investment grade and non-investment grade debt. BXCI is one of the largest credit managers and CLO managers in the world. The investment portfolios BXCI’s credit platform manages or sub-advises consist primarily of loans and securities of non-investment and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.
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, stressed/distressed strategies and SMAs. The direct lending funds include Blackstone Private Credit Fund (“BCRED”), Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”), as well as Blackstone European Private Credit Fund (“ECRED”).
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The liquid corporate credit strategies consist of CLOs, closed-ended funds, open-ended funds, systematic strategies and SMAs. The infrastructure and asset based credit strategies include private placement strategies, energy strategies (including our 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 investment management services for insurance and reinsurance accounts, seeking to deliver customized and diversified portfolios consisting primarily of investment grade credit, including through Blackstone’s private credit origination capabilities. Through this platform, we provide our clients tailored portfolio construction, strategic asset allocation and specialized analytical tools. While focusing on policyholder protection, we seek to achieve risk-managed, liability-matched and capital-efficient returns, as well as diversification and capital preservation. We also provide similar services to clients through SMAs or by sub-managing assets for certain insurance-dedicated funds and special purpose vehicles.
### Multi-Asset Investing
Our Multi-Asset Investing segment (“BXMA”) is the world’s largest discretionary allocator to hedge funds and is a leader in building multi-asset portfolios. BXMA invests across asset classes in both public and private markets aiming to generate compelling risk-adjusted returns.
BXMA is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management and Public Real Assets. Absolute Return manages a broad range of commingled and customized portfolios and aims to generate consistent returns across market environments. Multi-Strategy aims to generate strong risk-adjusted returns through opportunistic, asset-class agnostic investing. Total Portfolio Management manages large-scale total portfolios across asset classes in both public and private markets. The Public Real Assets platform is managed by Harvest Fund Advisors LLC (“Harvest”), which primarily invests in publicly traded energy infrastructure, renewables and master limited partnerships holding midstream energy assets in North America.
### 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 significantly in the second quarter of 2026, driven by resilient economic growth and underpinned by continued large-scale capex investments in the artificial intelligence-related ecosystem. The total return of the S&P 500 Index was 15.2%, with the information technology and industrial sectors exhibiting the largest gains of 31.8% and 14.9%, respectively. The energy sector was an outlier, decreasing 13.4% amid lower oil prices as supply disruption concerns eased. The price of West Texas Intermediate crude oil decreased 31.4% to $69.50 per barrel. In credit markets, the total return of the S&P Leveraged Loan Index was 1.9% and the ICE Bank of America High Yield Bond Index was 2.5%. High yield spreads tightened 32 basis points.
U.S. capital markets activity levels expanded considerably following an active first quarter. Initial public offering volumes increased 628% year-over-year, buoyed by the $75 billion initial public offering of SpaceX, the largest IPO in history. U.S. announced merger and acquisition deal volumes also rose sharply, up 99% year-over-year.
Inflation in the U.S. has moderated significantly from the post-Covid peak; however, inflation remains above the Federal Reserve’s long-term target of 2.0%, largely reflecting the impact of elevated energy prices in the first half of 2026. CPI increased 3.5% year-over-year in June, as compared to 3.3% growth in March 2026. The Federal Reserve has held the federal funds target range steady at 3.50-3.75% since December 2025. The ten-year U.S. Treasury yield increased 15 basis points in the second quarter of 2026 to 4.47% and has since risen to 4.72% as of July 31, 2026. Three-month SOFR was unchanged quarter-over-quarter at 3.68%.
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Despite slowing growth, the U.S. economy continued to demonstrate resilience in the second quarter. The Bureau of Economic Analysis’ advance estimate of U.S. real GDP indicated annualized growth of 1.5% quarter-over-quarter, compared to 2.1% in the first quarter. Wages rose 3.5% year-over-year in June 2026. Demand for retail and food services also remained strong, with sales increasing 6.7% year-over-year. The labor market remained in balance, with the unemployment rate at 4.2% as of June 2026 compared to 4.3% in March 2026.
Outside of the U.S., central banks have pursued a variety of policy approaches in response to regional economic conditions. The Bank of England left its bank rate unchanged at 3.75% through the second quarter. Inflation in the U.K. decreased to 2.6% year-over-year in June from 3.3% in March 2026. The European Central Bank increased its deposit facility rate by 25 basis points to 2.25% in June amid inflationary pressures associated with higher energy prices. The Bank of Japan increased its policy rate to 1.0% in June from 0.75%, as policymakers balanced inflation concerns against economic growth considerations. The People’s Bank of China left its rate unchanged at 3.0% for its one-year prime loan.
Despite ongoing uncertainty relating to geopolitical conditions and the path of interest rates and artificial intelligence disruption in certain sectors, the U.S. economy has demonstrated continued strength. This strength has been meaningfully aided by artificial intelligence-related spending. The vitality of the economy has positively impacted market sentiment and driven initial public offering and merger and acquisition activity. A durable resolution to the ongoing conflict in the Middle East should provide a basis for further improvements in market conditions and transaction activity.
For additional information on the potential impact on each of our business segments of the conditions described above see “—Segment Analysis”.
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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 condensed 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.
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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 Condensed Consolidated Statements of Operations under GAAP, excluding the impact of divestitures and accrued tax contingency-related liabilities or refunds which are reflected when paid or received. The Payable under the Tax Receivable Agreement reflects the expected amount of tax savings generated in the period that parties to the Tax Receivable Agreement are entitled to receive in future periods. 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, pursuant to an ongoing compensation program, 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 2026, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year in respect of this compensation program. The program, which typically has an impact on individual quarters based on the estimated amounts for the full
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year, does not impact Income Before Provision (Benefits) for Taxes and Distributable Earnings for the full year. For the three and six months ended June 30, 2026, Realized Performance Compensation increased by $39.9 million and $68.2 million, respectively, and Fee Related Compensation decreased by $17.5 million and $35.0 million, respectively, which reduced Net Realizations, increased Fee Related Earnings and had a negative impact to Income Before Provision (Benefits) for Taxes and Distributable Earnings in the three and six months ended June 30, 2026. These changes had an impact on individual quarters but did not impact Income Before Provision (Benefits) for Taxes and Distributable Earnings for the year ended December 31, 2025.
### 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.
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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 invested and available capital in Blackstone-managed or advised vehicles (including, without limitation, investment funds and SMAs). The Total Assets Under Management attributable to an individual vehicle is dependent on the structure and investment strategy of such vehicle and accordingly, will vary from vehicle to vehicle. Total Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable:
(a)
a vehicle’s invested capital at fair value which, as applicable, is measured as (1) total investments measured at fair value, or gross asset values, each of which may include the fair value of investments purchased with leverage under certain credit facilities, (2) net asset value, or (3) amount of debt and equity outstanding or aggregate par amount of assets, including principal cash for CLOs, and
(b)
a vehicle’s available capital, if any, which represents (1) uncalled commitments made by investors and (2) available borrowing capacity under certain credit facilities.
Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, perpetual capital vehicles, co-investment vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Total Assets Under Management are reported in the segment where the assets are managed.
Our measurement of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and our personnel. Our calculation of Total 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. Our definition of Total Assets Under Management differs from the manner in which affiliated investment advisors report regulatory assets under management and may differ from the definition set forth in the agreements governing the vehicles we manage or advise.
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“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees and/or performance revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Fee-Earning Assets Under Management are reported in the segment where the Total Assets Under Management are reported to the extent fee-paying to Blackstone.
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees, Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only performance revenues. Our calculation of 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. Our definition of Fee-Earning Assets Under Management may differ from the definition set forth in the agreements governing the vehicles that we manage or advise.
Commitment-based drawdown structured funds generally do not permit investors to redeem their interests at their election. Certain of our open-ended vehicles generally 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, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Investment advisory agreements related to certain SMAs in our Credit & Insurance and Multi-Asset Investing segments, excluding SMAs in our insurance platform, may generally be terminated by an investor on 15 to 95 days’ notice. SMAs 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.
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 or where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.
In our Perpetual Capital vehicles where redemption rights exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital. We believe this measure is useful to stockholders as it represents capital we manage that has a longer duration and the ability to generate recurring revenues in a different manner than traditional fund structures.
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.
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Invested Performance Eligible Assets Under Management
Invested Performance Eligible Assets Under Management represents invested capital at fair value 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.
Private Wealth Assets Under Management
“Private Wealth Assets Under Management” refers to the portion of assets under management attributable to the individual investor channel and comprises (a) all Assets Under Management in vehicles or share classes of vehicles, in each case that are primarily targeted to the individual investor channel (including parallel or related vehicles) and (b) Assets Under Management attributable only to individual investors (including through private wealth distribution agreements) in vehicles that are not primarily targeted to the individual investor channel.
### Recent Tax Developments
On February 18, 2026, the U.S. Internal Revenue Service (“IRS”) issued guidance which provides for additional adjustments to the calculation of the corporate alternative minimum tax (“CAMT”). Based on the available guidance, Blackstone does not believe such adjustments to the CAMT calculation will materially impact its Provision for Taxes.
### 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 intangible assets and Transaction-Related and Non-Recurring Items) in these periods, see “—Segment Analysis” below.
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The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the three and six months ended June 30, 2026 and 2025:
| Line item | Three Months Ended | Three Months Ended | | | Six Months Ended | Six Months Ended | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | June 30, | | 2026 vs. 2025 | | June 30, | | 2026 vs. 2025 | |
| | 2026 | 2025 | $% | % | 2026 | 2025 | $% | % |
| | (Dollars in Thousands) | | | | | | | |
| Revenues | | | | | | | | |
| Management and Advisory Fees, Net | $2,266,006 | $2,035,495 | $230,511 | 11% | $4,414,626 | $3,939,812 | $474,814 | 12% |
| Incentive Fees | 159,080 | 195,414 | (36,334) | -19% | 324,499 | 387,239 | (62,740) | -16% |
| Investment Income | | | | | | | | |
| Performance Allocations | | | | | | | | |
| Realized | 1,365,175 | 829,820 | 535,355 | 65% | 2,468,348 | 1,391,870 | 1,076,478 | 77% |
| Unrealized | 587,140 | 313,283 | 273,857 | 87% | 870,592 | 576,484 | 294,108 | 51% |
| Principal Investments | | | | | | | | |
| Realized | 105,585 | 97,171 | 8,414 | 9% | 248,605 | 282,713 | (34,108) | -12% |
| Unrealized | 414,821 | 365,391 | 49,430 | 14% | 29,819 | 524,104 | (494,285) | -94% |
| Total Investment Income (Loss) | 2,472,721 | 1,605,665 | 867,056 | 54% | 3,617,364 | 2,775,171 | 842,193 | 30% |
| Interest and Dividend Revenue | 134,224 | 100,389 | 33,835 | 34% | 242,164 | 197,809 | 44,355 | 22% |
| Other | 11,947 | (225,063) | 237,010 | n/m | 62,920 | (298,673) | 361,593 | n/m |
| Total Revenues | 5,043,978 | 3,711,900 | 1,332,078 | 36% | 8,661,573 | 7,001,358 | 1,660,215 | 24% |
| Expenses | | | | | | | | |
| Compensation and Benefits | | | | | | | | |
| Compensation | 963,026 | 870,358 | 92,668 | 11% | 2,129,923 | 1,899,720 | 230,203 | 12% |
| Incentive Fee Compensation | 49,716 | 67,363 | (17,647) | -26% | 104,084 | 124,392 | (20,308) | -16% |
| Performance Allocations Compensation | | | | | | | | |
| Realized | 565,264 | 331,191 | 234,073 | 71% | 998,713 | 573,081 | 425,632 | 74% |
| Unrealized | 236,129 | 152,618 | 83,511 | 55% | 325,830 | 256,177 | 69,653 | 27% |
| Total Compensation and Benefits | 1,814,135 | 1,421,530 | 392,605 | 28% | 3,558,550 | 2,853,370 | 705,180 | 25% |
| General, Administrative and Other | 409,110 | 360,817 | 48,293 | 13% | 781,931 | 693,190 | 88,741 | 13% |
| Interest Expense | 145,023 | 135,822 | 9,201 | 7% | 282,076 | 253,937 | 28,139 | 11% |
| Fund Expenses | 7,344 | 14,434 | (7,090) | -49% | 15,348 | 26,538 | (11,190) | -42% |
| Total Expenses | 2,375,612 | 1,932,603 | 443,009 | 23% | 4,637,905 | 3,827,035 | 810,870 | 21% |
| Other Income | | | | | | | | |
| Net Gains from Fund Investment Activities | 140,086 | 136,330 | 3,756 | 3% | 239,841 | 193,905 | 45,936 | 24% |
| Total Other Income | 140,086 | 136,330 | 3,756 | 3% | 239,841 | 193,905 | 45,936 | 24% |
| Income Before Provision for Taxes | 2,808,452 | 1,915,627 | 892,825 | 47% | 4,263,509 | 3,368,228 | 895,281 | 27% |
| Provision for Taxes | 452,386 | 289,494 | 162,892 | 56% | 649,536 | 533,321 | 116,215 | 22% |
| Net Income | 2,356,066 | 1,626,133 | 729,933 | 45% | 3,613,973 | 2,834,907 | 779,066 | 27% |
| Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 5,154 | 18,209 | (13,055) | -72% | 26,164 | 26,109 | 55 | — |
| Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 175,649 | 240,836 | (65,187) | -27% | 293,016 | 341,383 | (48,367) | -14% |
| Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | 946,074 | 602,844 | 343,230 | 57% | 1,415,875 | 1,088,319 | 327,556 | 30% |
| Net Income Attributable to Blackstone Inc. | $1,229,189 | $764,244 | $464,945 | 61% | $1,878,918 | $1,379,096 | $499,822 | 36% |
n/m Not meaningful.
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Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Revenues
Revenues were $5.0 billion for the three months ended June 30, 2026, an increase of $1.3 billion compared to $3.7 billion for the three months ended June 30, 2025. The increase in Revenues was primarily attributable to increases of $867.1 million in Investment Income, $237.0 million in Other Revenue and $230.5 million in Management and Advisory Fees, Net.
Investment Income was $2.5 billion for the three months ended June 30, 2026, an increase of $867.1 million, compared to $1.6 billion for the three months ended June 30, 2025. The increase in Investment Income was attributable to increases of $543.8 million in Realized Investment Income and of $323.3 million in Unrealized Investment Income.
The $543.8 million increase in Realized Investment Income was primarily attributable to higher realized gains in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The principal driver was:
-
An increase of $324.7 million in our Real Estate segment primarily attributable to higher realized gains in BREP and Core+ real estate funds in the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
The $323.3 million increase in Unrealized Investment Income was primarily attributable to lower unrealized depreciation in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The principal driver was:
-
An increase of $450.4 million in our Real Estate segment primarily attributable to unrealized appreciation of investments in certain BREP and Core+ real estate funds in the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Other Revenue was $11.9 million for the three months ended June 30, 2026, an increase of $237.0 million, compared to $(225.1) million for the three months ended June 30, 2025. The increase in Other Revenue was primarily attributable to foreign exchange gains arising on transactions denominated in currencies other than U.S. dollars.
Management and Advisory Fees, Net were $2.3 billion for the three months ended June 30, 2026, an increase of $230.5 million, compared to $2.0 billion for the three months ended June 30, 2025. The increase in Management and Advisory Fees, Net was primarily attributable to increases in our Credit & Insurance segment of $102.1 million and in our Private Equity segment of $88.3 million. The increase in our Credit & Insurance segment was primarily attributable to increased Transaction, Advisory and Other Fees, Net due to capital markets advisory revenues. The increase in our Private Equity segment was primarily attributable to an increase in Base Management Fees due to increased Fee-Earning Assets Under Management in BXPE, BIP and BXINFRA.
Expenses
Expenses were $2.4 billion for the three months ended June 30, 2026, an increase of $443.0 million, compared to $1.9 billion for the three months ended June 30, 2025. The increase was primarily attributable to an increase of $392.6 million in Total Compensation and Benefits, of which $317.6 million was an increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily attributable to an increase in Performance Allocations, on which a portion of Performance Allocations Compensation is based.
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Other Income
Other Income was $140.1 million for the three months ended June 30, 2026, an increase of $3.8 million, compared to $136.3 million for the three months ended June 30, 2025. The increase in Other Income was attributable to an increase of $3.8 million in Net Gains from Fund Investment Activities. The increase in Net Gains from Fund Investment Activities was primarily attributable to an increase of $50.8 million in our Private Equity segment, partially offset by decreases of $21.6 million in our Real Estate segment and $14.1 million in our Multi-Asset Investing segment.
### Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Revenues
Revenues were $8.7 billion for the six months ended June 30, 2026, an increase of $1.7 billion, compared to $7.0 billion for the six months ended June 30, 2025. The increase in Revenues was primarily attributable to increases of $842.2 million in Investment Income and of $474.8 million in Management and Advisory Fees, Net.
Investment Income was $3.6 billion for the six months ended June 30, 2026, an increase of $842.2 million compared to $2.8 billion for the six months ended June 30, 2025. The increase in Investment Income was primarily attributable to an increase of $1.0 billion in Realized Investment Income, partially offset by a decrease of $200.2 million in Unrealized Investment Income.
The $1.0 billion increase in Realized Investment Income was primarily attributable to higher realized gains in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The principal drivers were:
-
An increase of $719.9 million in our Private Equity segment primarily attributable to realizations in Corporate Private Equity, as well as higher performance revenues in BXPE.
The $200.2 million decrease in Unrealized Investment Income was primarily attributable to lower unrealized gains in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The principal drivers were:
-
A decrease of $507.8 million in our Credit & Insurance segment primarily attributable to lower unrealized appreciation of Corebridge common stock in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
-
A decrease of $206.2 million in our Private Equity segment primarily attributable to lower unrealized appreciation of investments in Strategic Partners and lower unrealized performance revenues in Tactical Opportunities as a result of increased realized performance revenues, partially offset by unrealized appreciation of investments in BIP.
-
Partially offset by an increase of $529.1 million in our Real Estate segment primarily attributable to unrealized appreciation of investments in certain BREP and Core+ real estate funds in the six months ended June 30, 2026 compared to unrealized depreciation of investments in six months ended June 30, 2025.
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The $474.8 million increase in Management and Advisory Fees, Net was primarily attributable to an increase in our Private Equity segment of $268.4 million. The increase in our Private Equity segment was primarily attributable to an increase in Base Management Fees due to increased Fee-Earning Assets Under Management in BXPE and BIP, as well as an increase in Transaction, Advisory and Other Fees, Net due to increased volume of deal activity in BXCM.
Expenses
Expenses were $4.6 billion for the six months ended June 30, 2026, an increase of $810.9 million, compared to $3.8 billion for the six months ended June 30, 2025. The increase was primarily attributable to an increase of $705.2 million in Total Compensation and Benefits, of which $495.3 million was an increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily attributable to an increase in Performance Allocations, on which a portion of Performance Allocations Compensation is based.
Other Income
Other Income was $239.8 million for the six months ended June 30, 2026, an increase of $45.9 million, compared to $193.9 million for the six months ended June 30, 2025. The increase in Other Income was attributable to an increase of $45.9 million in Net Gains from Fund Investment Activities. The increase in Net Gains from Fund Investment Activities was primarily attributable to an increase of $111.1 million in our Private Equity segment, partially offset by decreases of $34.4 million in our Multi-Asset Investing segment and $19.1 million in our Real Estate segment.
### Provision for Taxes
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Blackstone’s Provision for Taxes for the three months ended June 30, 2026 was $452.4 million, an increase of $162.9 million, compared to $289.5 million for the three months ended June 30, 2025. This resulted in an effective tax rate of 16.1% and 15.1%, based on our Income Before Provision for Taxes of $2.8 billion and $1.9 billion for the three months ended June 30, 2026 and 2025, respectively.
The increase in Blackstone’s effective tax rate for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, relates primarily to the impact of Non-Controlling Interests in Consolidated Entities.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Blackstone’s Provision for Taxes for the six months ended June 30, 2026 was $649.5 million, an increase of $116.2 million, compared to $533.3 million for the six months ended June 30, 2025. This resulted in an effective tax rate of 15.2% and 15.8%, based on our Income Before Provision for Taxes of $4.3 billion and $3.4 billion for the six months ended June 30, 2026 and 2025, respectively.
The decrease in Blackstone’s effective tax rate for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, relates primarily to Blackstone’s state tax provisions for the jurisdictions in which it operates, partially offset by the impact of Non-Controlling interests in Consolidated Entities.
Additional information regarding our income taxes can be found in Note 12. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
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Non-Controlling Interests in Consolidated Entities
The Net Income 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 is based on 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 June 30, 2026 and 2025, the Net Income Before Taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 37.1% and 37.7%, respectively. For the six months ended June 30, 2026 and 2025, the Net Income Before Taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 37.2% and 37.9%, respectively. The respective decreases of 0.6% and 0.7% were primarily attributable 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 Total Assets Under Management by Segment and Fee-Earning Assets Under Management by Segment, followed by a rollforward of activity for the three and six months ended June 30, 2026 and 2025. 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.”
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Note: Totals may not add due to rounding.
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_(Dollars in Thousands)_
| Line item | Three Months Ended / June 30, 2026 / Real Estate | Three Months Ended / June 30, 2026 / Private Equity | Three Months Ended / June 30, 2026 / Credit &Insurance | Three Months Ended / June 30, 2026 / Multi-Asset Investing | Three Months Ended / June 30, 2026 / Total | Three Months Ended / June 30, 2025 / Real Estate | Three Months Ended / June 30, 2025 / Private Equity | Three Months Ended / June 30, 2025 / Credit &Insurance | Three Months Ended / June 30, 2025 / Multi-Asset Investing | Three Months Ended / June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total Assets Under Management | | | | | | | | | | |
| Balance, Beginning of Period | $315,284,316 | $429,909,808 | $457,462,151 | $101,361,359 | $1,304,017,634 | $319,988,734 | $370,989,871 | $388,720,401 | $87,762,904 | $1,167,461,910 |
| Inflows (a) | 8,192,794 | 24,519,793 | 31,011,510 | 4,575,944 | 68,300,041 | 7,222,446 | 15,323,222 | 26,818,000 | 2,713,566 | 52,077,234 |
| Outflows (b) | (2,156,644) | (1,457,761) | (7,626,498) | (2,297,780) | (13,538,683) | (1,883,281) | (1,804,870) | (5,287,139) | (1,796,301) | (10,771,591) |
| Net Inflows | 6,036,150 | 23,062,032 | 23,385,012 | 2,278,164 | 54,761,358 | 5,339,165 | 13,518,352 | 21,530,861 | 917,265 | 41,305,643 |
| Realizations (c) | (6,615,294) | (11,023,147) | (13,494,781) | (710,043) | (31,843,265) | (5,249,171) | (7,316,081) | (9,962,065) | (825,058) | (23,352,375) |
| Market Activity (d)(g) | (555,375) | 12,203,627 | 1,965,058 | 5,714,798 | 19,328,108 | 4,915,997 | 11,715,100 | 7,006,975 | 2,154,091 | 25,792,163 |
| Balance, End of Period (e) | $314,149,797 | $454,152,320 | $469,317,440 | $108,644,278 | $1,346,263,835 | $324,994,725 | $388,907,242 | $407,296,172 | $90,009,202 | $1,211,207,341 |
| Increase (Decrease) | $(1,134,519) | $24,242,512 | $11,855,289 | $7,282,919 | $42,246,201 | $5,005,991 | $17,917,371 | $18,575,771 | $2,246,298 | $43,745,431 |
| Increase (Decrease) | 0% | 6% | 3% | 7% | 3% | 2% | 5% | 5% | 3% | 4% |
_(Dollars in Thousands)_
| Line item | Six Months Ended / June 30, 2026 / Real Estate | Six Months Ended / June 30, 2026 / Private Equity | Six Months Ended / June 30, 2026 / Credit &Insurance | Six Months Ended / June 30, 2026 / Multi-Asset Investing | Six Months Ended / June 30, 2026 / Total | Six Months Ended / June 30, 2025 / Real Estate | Six Months Ended / June 30, 2025 / Private Equity | Six Months Ended / June 30, 2025 / Credit &Insurance | Six Months Ended / June 30, 2025 / Multi-Asset Investing | Six Months Ended / June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Total Assets Under Management | | | | | | | | | | |
| Balance, Beginning of Period | $319,342,875 | $416,423,156 | $442,951,606 | $96,213,597 | $1,274,931,234 | $315,353,132 | $352,168,635 | $375,507,818 | $84,150,411 | $1,127,179,996 |
| Inflows (a) | 14,969,507 | 44,872,883 | 68,030,495 | 8,968,475 | 136,841,360 | 13,398,076 | 37,007,746 | 57,167,112 | 6,138,984 | 113,711,918 |
| Outflows (b) | (5,001,796) | (3,606,942) | (16,976,185) | (3,836,412) | (29,421,335) | (4,559,583) | (5,242,894) | (11,913,342) | (2,919,861) | (24,635,680) |
| Net Inflows | 9,967,711 | 41,265,941 | 51,054,310 | 5,132,063 | 107,420,025 | 8,838,493 | 31,764,852 | 45,253,770 | 3,219,123 | 89,076,238 |
| Realizations (c) | (13,654,328) | (25,587,151) | (27,161,677) | (1,348,420) | (67,751,576) | (9,555,186) | (13,783,306) | (23,849,608) | (1,649,886) | (48,837,986) |
| Market Activity (d)(h) | (1,506,461) | 22,050,374 | 2,473,201 | 8,647,038 | 31,664,152 | 10,358,286 | 18,757,061 | 10,384,192 | 4,289,554 | 43,789,093 |
| Balance, End of Period (e) | $314,149,797 | $454,152,320 | $469,317,440 | $108,644,278 | $1,346,263,835 | $324,994,725 | $388,907,242 | $407,296,172 | $90,009,202 | $1,211,207,341 |
| Increase (Decrease) | $(5,193,078) | $37,729,164 | $26,365,834 | $12,430,681 | $71,332,601 | $9,641,593 | $36,738,607 | $31,788,354 | $5,858,791 | $84,027,345 |
| Increase (Decrease) | -2% | 9% | 6% | 13% | 6% | 3% | 10% | 8% | 7% | 7% |
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_(Dollars in Thousands)_
| Line item | Three Months Ended / June 30, 2026 / Real Estate | Three Months Ended / June 30, 2026 / Private Equity | Three Months Ended / June 30, 2026 / Credit &Insurance | Three Months Ended / June 30, 2026 / Multi-Asset Investing | Three Months Ended / June 30, 2026 / Total | Three Months Ended / June 30, 2025 / Real Estate | Three Months Ended / June 30, 2025 / Private Equity | Three Months Ended / June 30, 2025 / Credit &Insurance | Three Months Ended / June 30, 2025 / Multi-Asset Investing | Three Months Ended / June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Fee-Earning Assets Under Management | | | | | | | | | | |
| Balance, Beginning of Period | $277,502,688 | $255,840,774 | $313,255,195 | $90,997,797 | $937,596,454 | $282,060,486 | $226,219,392 | $274,120,326 | $77,669,746 | $860,069,950 |
| Inflows (a) | 6,090,322 | 15,363,029 | 17,225,406 | 4,612,628 | 43,291,385 | 7,587,147 | 7,550,495 | 23,817,071 | 2,944,815 | 41,899,528 |
| Outflows (b) | (1,105,766) | (4,116,572) | (5,256,355) | (2,122,321) | (12,601,014) | (1,712,885) | (804,533) | (5,872,807) | (1,689,485) | (10,079,710) |
| Net Inflows | 4,984,556 | 11,246,457 | 11,969,051 | 2,490,307 | 30,690,371 | 5,874,262 | 6,745,962 | 17,944,264 | 1,255,330 | 31,819,818 |
| Realizations (c) | (4,473,568) | (4,558,846) | (8,037,385) | (677,049) | (17,746,848) | (5,405,545) | (3,288,907) | (7,006,088) | (782,279) | (16,482,819) |
| Market Activity (d)(i) | (593,256) | 5,289,475 | 1,053,833 | 5,302,625 | 11,052,677 | 3,297,473 | 2,483,762 | 3,872,734 | 2,053,287 | 11,707,256 |
| Balance, End of Period (e) | $277,420,420 | $267,817,860 | $318,240,694 | $98,113,680 | $961,592,654 | $285,826,676 | $232,160,209 | $288,931,236 | $80,196,084 | $887,114,205 |
| Increase (Decrease) | $(82,268) | $11,977,086 | $4,985,499 | $7,115,883 | $23,996,200 | $3,766,190 | $5,940,817 | $14,810,910 | $2,526,338 | $27,044,255 |
| Increase (Decrease) | 0% | 5% | 2% | 8% | 3% | 1% | 3% | 5% | 3% | 3% |
_(Dollars in Thousands)_
| Line item | Six Months Ended / June 30, 2026 / Real Estate | Six Months Ended / June 30, 2026 / Private Equity | Six Months Ended / June 30, 2026 / Credit &Insurance | Six Months Ended / June 30, 2026 / Multi-Asset Investing | Six Months Ended / June 30, 2026 / Total | Six Months Ended / June 30, 2025 / Real Estate | Six Months Ended / June 30, 2025 / Private Equity | Six Months Ended / June 30, 2025 / Credit &Insurance | Six Months Ended / June 30, 2025 / Multi-Asset Investing | Six Months Ended / June 30, 2025 / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Fee-Earning Assets Under Management | | | | | | | | | | |
| Balance, Beginning of Period | $279,427,148 | $240,959,058 | $315,640,583 | $85,647,665 | $921,674,454 | $278,914,938 | $212,182,896 | $264,617,560 | $74,993,209 | $830,708,603 |
| Inflows (a) | 11,488,305 | 34,710,962 | 31,937,151 | 9,311,602 | 87,448,020 | 13,559,679 | 22,902,066 | 44,220,903 | 5,375,389 | 86,058,037 |
| Outflows (b) | (2,853,179) | (8,806,792) | (13,185,260) | (3,603,794) | (28,449,025) | (4,309,189) | (2,473,791) | (10,802,441) | (2,725,809) | (20,311,230) |
| Net Inflows | 8,635,126 | 25,904,170 | 18,751,891 | 5,707,808 | 58,998,995 | 9,250,490 | 20,428,275 | 33,418,462 | 2,649,580 | 65,746,807 |
| Realizations (c) | (9,712,277) | (9,387,367) | (17,226,285) | (1,289,669) | (37,615,598) | (9,222,193) | (6,103,494) | (14,857,276) | (1,475,344) | (31,658,307) |
| Market Activity (d)(j) | (929,577) | 10,341,999 | 1,074,505 | 8,047,876 | 18,534,803 | 6,883,441 | 5,652,532 | 5,752,490 | 4,028,639 | 22,317,102 |
| Balance, End of Period (e) | $277,420,420 | $267,817,860 | $318,240,694 | $98,113,680 | $961,592,654 | $285,826,676 | $232,160,209 | $288,931,236 | $80,196,084 | $887,114,205 |
| Increase (Decrease) | $(2,006,728) | $26,858,802 | $2,600,111 | $12,466,015 | $39,918,200 | $6,911,738 | $19,977,313 | $24,313,676 | $5,202,875 | $56,405,602 |
| Increase (Decrease) | -1% | 11% | 1% | 15% | 4% | 2% | 9% | 9% | 7% | 7% |
| Annualized Base Management Fee Rate (f) | 0.91% | 1.05% | 0.64% | 0.66% | 0.83% | 0.95% | 1.06% | 0.66% | 0.65% | 0.86% |
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(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 June 30, 2026, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(637.6) million, $(191.8) million, $(326.5) million, $(153.7) million and $(1.3) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended June 30, 2025, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $6.0 billion, $2.4 billion, $2.4 billion, $132.0 million and $11.0 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
(h)
For the six months ended June 30, 2026, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(1.9) billion, $(868.7) million, $(273.1) million, $(58.4) million and $(3.1) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the six months ended June 30, 2025, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $8.9 billion, $3.7 billion, $2.7 billion, $287.7 million and $15.6 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
(i)
For the three months ended June 30, 2026, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(460.4) million, $(56.8) million, $(278.9) million, $(153.4) million and $(949.5) million for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended June 30, 2025, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $4.4 billion, $422.9 million, $2.3 billion, $134.5 million and $7.3 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
(j)
For the six months ended June 30, 2026, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(1.3) billion, $(127.3) million, $(223.9) million, $(58.4) million and $(1.7) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the six months ended June 30, 2025, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $6.4 billion, $590.1 million, $2.7 billion, $288.7 million and $10.0 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
Total Assets Under Management and Fee-Earning Assets Under Management may have differences in the measurement and timing of certain activities that affect each of inflows, outflows, realizations and market activity. These differences include, but are not limited to:
-
For commitment-based drawdown funds, Total Assets Under Management inflows are generally reported at each fund closing whereas Fee-Earning Assets Under Management inflows are generally reported when a fund’s investment period commences. Fund closings and the investment period commencement generally occur in different periods and as such, Fee-Earning Assets Under Management inflows in such funds may exceed Total Assets Under Management inflows in the period when the investment period commences. Upon expiration of the investment period, Fee-Earning
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Assets Under Management outflows may exceed Total Assets Under Management outflows due to Fee-Earning Assets Under Management generally including invested capital subsequent to the investment period compared to committed capital during the investment period. This is most prevalent in our Real Estate and Private Equity segments.
-
For commitment-based drawdown funds, Total Assets Under Management realizations generally represents the total proceeds whereas Fee-Earning Assets Under Management generally represents only the invested capital. As such, Total Assets Under Management realizations typically exceeds Fee-Earning Assets Under Management realizations. This is most prevalent in our Real Estate and Private Equity segments.
-
For commitment-based drawdown funds, Total Assets Under Management is reported based on invested capital at fair value and available capital whereas Fee-Earning Assets Under Management is generally reported based on committed or remaining invested capital. As such, Total Assets Under Management market activity generally exceeds Fee-Earning Assets Under Management market activity. This is most prevalent in our Real Estate and Private Equity segments.
-
For certain credit funds, Total Assets Under Management are based on gross asset value while Fee-Earning Assets Under Management are based on net asset value. As such, Total Assets Under Management inflows, outflows, realizations and market activity for the period generally exceed the Fee-Earning Assets Under Management inflows, outflows, realizations and market activity for the period.
Total Assets Under Management
Total Assets Under Management were $1,346.3 billion at June 30, 2026, an increase of $42.2 billion compared to $1,304.0 billion at March 31, 2026. The net increase was due to:
-
In our Real Estate segment, a decrease of $1.1 billion from $315.3 billion at March 31, 2026 to $314.1 billion at June 30, 2026. The net decrease was due to realizations of $6.6 billion, outflows of $2.2 billion and market depreciation of $555.4 million, partially offset by inflows of $8.2 billion.
○
Realizations were driven by $2.7 billion from BREP, $1.9 billion from BREDS and $1.4 billion from BREIT.
○
Outflows were driven by $853.8 million from BREIT and $818.4 million from BREDS.
○
Market depreciation was driven by $2.3 billion from BPP and co-investment, partially offset by market appreciation of $1.7 billion from BREIT.
○
Inflows were driven by $2.3 billion from BREIT, $2.1 billion from BREDS, $2.0 billion from BXDC and $1.3 billion from BREP.
-
In our Private Equity segment, an increase of $24.2 billion from $429.9 billion at March 31, 2026 to $454.2 billion at June 30, 2026. The net increase was due to inflows of $24.5 billion and market appreciation of $12.2 billion, partially offset by realizations of $11.0 billion and outflows of $1.5 billion.
○
Inflows were driven by $11.0 billion from Corporate Private Equity, $5.7 billion from Secondaries, $4.0 billion from BXPE, $2.8 billion from Infrastructure and $890.8 million from Tactical Opportunities.
○
Market appreciation was driven by $4.7 billion from Infrastructure, $3.4 billion from Corporate Private Equity, $1.8 billion from BXPE and $1.2 billion from Secondaries.
○
Realizations were driven by $5.2 billion from Corporate Private Equity, $2.6 billion from Secondaries, $1.4 billion from Infrastructure and $1.2 billion from Tactical Opportunities.
○
Outflows were driven by $359.4 million from Secondaries and $240.0 million from BXPE.
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-
In our Credit & Insurance segment, an increase of $11.9 billion from $457.5 billion at March 31, 2026 to $469.3 billion at June 30, 2026. The net increase was due to inflows of $31.0 billion and market appreciation of $2.0 billion, partially offset by realizations of $13.5 billion and outflows of $7.6 billion.
○
Inflows were driven by $14.7 billion from private corporate credit, $9.9 billion from infrastructure and asset based credit, $3.5 billion from the insurance platform and $2.9 billion from liquid corporate credit.
○
Market appreciation was driven by $786.7 million from liquid corporate credit and $719.8 million from infrastructure and asset based credit.
○
Realizations were driven by $7.7 billion from private corporate credit and $4.8 billion from infrastructure and asset based credit.
○
Outflows were driven by $5.3 billion from private corporate credit and $1.7 billion from liquid corporate credit.
-
In our Multi-Asset Investing segment, an increase of $7.3 billion from $101.4 billion at March 31, 2026 to $108.6 billion at June 30, 2026. The net increase was due to market appreciation of $5.7 billion and inflows of $4.6 billion, offset by outflows of $2.3 billion and realizations of $710.0 million.
○
Market appreciation was driven by $3.4 billion from Absolute Return and $1.3 billion from Total Portfolio Management.
○
Inflows were driven by $2.3 billion from Total Portfolio Management and $1.5 billion from Absolute Return.
○
Outflows were driven by $1.8 billion from Absolute Return.
○
Realizations were driven by $341.5 million from Multi-Strategy.
Total Assets Under Management were $1,346.3 billion at June 30, 2026, an increase of $71.3 billion compared to $1,274.9 billion at December 31, 2025. The net increase was due to:
-
In our Real Estate segment, a decrease of $5.2 billion from $319.3 billion at December 31, 2025 to $314.1 billion at June 30, 2026. The net decrease was due to realizations of $13.7 billion, outflows of $5.0 billion and market depreciation of $1.5 billion, partially offset by inflows of $15.0 billion.
○
Realizations were driven by $4.9 billion from BREP, $4.7 billion from BREDS, $2.8 billion from BREIT and $1.1 billion from BPP and co-investment.
○
Outflows were driven by $2.1 billion from BREIT and $1.3 billion from BREP.
○
Market depreciation was driven by $3.4 billion from BPP and co-investment and $1.2 billion from BREP (which included $1.0 billion of foreign exchange depreciation), partially offset by market appreciation of $2.7 billion from BREIT.
○
Inflows were driven by $5.5 billion from BREDS, $4.6 billion from BREIT, $2.0 billion from BXDC and $1.7 billion from BREP.
-
In our Private Equity segment, an increase of $37.7 billion from $416.4 billion at December 31, 2025 to $454.2 billion at June 30, 2026. The net increase was due to inflows of $44.9 billion and market appreciation of $22.1 billion, partially offset by realizations of $25.6 billion and outflows of $3.6 billion.
○
Inflows were driven by $14.4 billion from Corporate Private Equity, $14.1 billion from Secondaries, $6.6 billion from BXPE, $5.5 billion from Infrastructure, $2.3 billion from BXLS and $1.5 billion from Tactical Opportunities.
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○
Market appreciation was driven by $9.4 billion from Infrastructure, $5.7 billion from Corporate Private Equity, $2.8 billion from BXPE, $1.7 billion from Secondaries and $1.3 billion from Tactical Opportunities.
○
Realizations were driven by $13.7 billion from Corporate Private Equity, $4.7 billion from Secondaries, $4.1 billion from Tactical Opportunities and $1.9 billion from Infrastructure.
○
Outflows were driven by $1.1 billion from Corporate Private Equity and $898.0 million from Secondaries.
-
In our Credit & Insurance segment, an increase of $26.4 billion from $443.0 billion at December 31, 2025 to $469.3 billion at June 30, 2026. The net increase was due to inflows of $68.0 billion and market appreciation of $2.5 billion, partially offset by realizations of $27.2 billion and outflows of $17.0 billion.
○
Inflows were driven by $36.2 billion from private corporate credit, $20.8 billion from infrastructure and asset based credit and $9.7 billion from liquid corporate credit.
○
Market appreciation was driven by $1.8 billion from infrastructure and asset based credit.
○
Realizations were driven by $14.9 billion from private corporate credit, $9.7 billion from infrastructure and asset based credit and $2.4 billion from liquid corporate credit.
○
Outflows were driven by $11.0 billion from private corporate credit and $4.8 billion from liquid corporate credit.
-
In our Multi-Asset Investing segment, an increase of $12.4 billion from $96.2 billion at December 31, 2025 to $108.6 billion at June 30, 2026. The net increase was due to inflows of $9.0 billion and market appreciation of $8.6 billion, offset by outflows of $3.8 billion and realizations of $1.3 billion.
○
Inflows were driven by $4.2 billion from Absolute Return, $3.0 billion from Total Portfolio Management and $1.6 billion from Multi-Strategy.
○
Market appreciation was driven by $4.3 billion from Absolute Return, $1.7 billion from Public Real Assets, $1.6 billion from Total Portfolio Management and $1.1 billion from Multi-Strategy.
○
Outflows were driven by $2.9 billion from Absolute Return.
○
Realizations were driven by $744.3 million from Multi-Strategy.
Fee-Earning Assets Under Management
Fee-Earning Assets Under Management were $961.6 billion at June 30, 2026, an increase of $24.0 billion compared to $937.6 billion at March 31, 2026. The net increase was due to:
-
In our Real Estate segment, a decrease of $82.3 million from $277.5 billion at March 31, 2026 to $277.4 billion at June 30, 2026. The net decrease was due to realizations of $4.5 billion, outflows of $1.1 billion and market depreciation of $593.3 million, partially offset by inflows of $6.1 billion.
○
Realizations were driven by $1.8 billion from BREDS, $1.4 billion from BREIT and $675.0 million from BREP.
○
Outflows were driven by $853.8 million from BREIT and $184.0 million from BPP and co-investment.
○
Market depreciation was driven by $2.3 billion from BPP and co-investment, partially offset by market appreciation of $1.7 billion from BREIT.
○
Inflows were driven by $2.2 billion from BREIT, $2.0 billion from BXDC and $609.8 million from BPP and co-investment.
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-
In our Private Equity segment, an increase of $12.0 billion from $255.8 billion at March 31, 2026 to $267.8 billion at June 30, 2026. The net increase was due to inflows of $15.4 billion and market appreciation of $5.3 billion, partially offset by realizations of $4.6 billion and outflows of $4.1 billion.
○
Inflows were driven by $6.1 billion from Corporate Private Equity, $4.0 billion from BXPE, $2.5 billion from Infrastructure and $2.3 billion from Secondaries.
○
Market appreciation was driven by $3.7 billion from Infrastructure and $1.8 billion from BXPE.
○
Realizations were driven by $1.4 billion from Corporate Private Equity, $1.2 billion from Infrastructure and $803.4 million from Secondaries.
○
Outflows were driven by $3.2 billion from Corporate Private Equity.
-
In our Credit & Insurance segment, an increase of $5.0 billion from $313.3 billion at March 31, 2026 to $318.2 billion at June 30, 2026. The net increase was due to inflows of $17.2 billion and market appreciation of $1.1 billion, partially offset by realizations of $8.0 billion and outflows of $5.3 billion.
○
Inflows were driven by $6.2 billion from infrastructure and asset based credit, $4.1 billion from private corporate credit, $4.1 billion from the insurance platform and $2.7 billion from liquid corporate credit.
○
Market appreciation was driven by $542.2 million from infrastructure and asset based credit.
○
Realizations were driven by $4.4 billion from infrastructure and asset based credit and $2.7 billion from private corporate credit.
○
Outflows were driven by $3.1 billion from private corporate credit and $1.6 billion from liquid corporate credit.
-
In our Multi-Asset Investing segment, an increase of $7.1 billion from $91.0 billion at March 31, 2026 to $98.1 billion at June 30, 2026. The net increase was due to market appreciation of $5.3 billion and inflows of $4.6 billion, offset by outflows of $2.1 billion and realizations of $677.1 million.
○
Market appreciation was driven by $3.2 billion from Absolute Return, $1.1 billion from Total Portfolio Management and $850.0 million from Multi-Strategy.
○
Inflows were driven by $2.3 billion from Total Portfolio Management, $1.4 billion from Absolute Return and $857.1 million from Multi-Strategy.
○
Outflows were driven by $1.7 billion from Absolute Return.
○
Realizations were driven by $337.8 million from Multi-Strategy.
Fee-Earning Assets Under Management were $961.6 billion at June 30, 2026, an increase of $39.9 billion compared to $921.7 billion at December 31, 2025. The net increase was due to:
-
In our Real Estate segment, a decrease of $2.0 billion from $279.4 billion at December 31, 2025 to $277.4 billion at June 30, 2026. The net decrease was due to realizations of $9.7 billion, outflows of $2.9 billion and market depreciation of $929.6 million, partially offset by inflows of $11.5 billion.
○
Realizations were driven by $2.9 billion from BREDS, $2.8 billion from BREIT and $2.7 billion from BREP.
○
Outflows were driven by $2.1 billion from BREIT and $591.7 million from BPP and co-investment.
○
Market depreciation was driven by $3.4 billion from BPP and co-investment, partially offset by market appreciation of $2.7 billion from BREIT.
○
Inflows were driven by $4.5 billion from BREIT, $2.7 billion from BREDS and $2.0 billion from BXDC.
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-
In our Private Equity segment, an increase of $26.9 billion from $241.0 billion at December 31, 2025 to $267.8 billion at June 30, 2026. The net increase was due to inflows of $34.7 billion and market appreciation of $10.3 billion, partially offset by realizations of $9.4 billion and outflows of $8.8 billion.
○
Inflows were driven by $10.6 billion from Secondaries, $8.9 billion from Corporate Private Equity, $6.6 billion from BXPE, $4.1 billion from Infrastructure, $2.3 billion from BXLS and $1.9 billion from Tactical Opportunities.
○
Market appreciation was driven by $7.8 billion from Infrastructure and $2.8 billion from BXPE.
○
Realizations were driven by $3.8 billion from Corporate Private Equity, $1.6 billion from Infrastructure, $1.5 billion from Secondaries and $1.4 billion from Tactical Opportunities.
○
Outflows were driven by $6.4 billion from Corporate Private Equity.
-
In our Credit & Insurance segment, an increase of $2.6 billion from $315.6 billion at December 31, 2025 to $318.2 billion at June 30, 2026. The net increase was due to inflows of $31.9 billion and market appreciation of $1.1 billion, partially offset by realizations of $17.2 billion and outflows of $13.2 billion.
○
Inflows were driven by $12.1 billion from infrastructure and asset based credit, $9.2 billion from private corporate credit and $8.8 billion from liquid corporate credit.
○
Market appreciation was driven by $1.4 billion from infrastructure and asset based credit, partially offset by market depreciation of $365.0 million from liquid corporate credit.
○
Realizations were driven by $9.0 billion from infrastructure and asset based credit, $5.7 billion from private corporate credit and $2.4 billion from liquid corporate credit.
○
Outflows were driven by $7.0 billion from private corporate credit and $4.6 billion from liquid corporate credit.
-
In our Multi-Asset Investing segment, an increase of $12.5 billion from $85.6 billion at December 31, 2025 to $98.1 billion at June 30, 2026. The net increase was due to inflows of $9.3 billion and market appreciation of $8.0 billion, offset by outflows of $3.6 billion and realizations of $1.3 billion.
○
Inflows were driven by $4.5 billion from Absolute Return, $3.0 billion from Total Portfolio Management and $1.7 billion from Multi-Strategy.
○
Market appreciation was driven by $4.0 billion from Absolute Return, $1.5 billion from Public Real Assets, $1.5 billion from Total Portfolio Management and $1.0 billion from Multi-Strategy.
○
Outflows were driven by $2.8 billion from Absolute Return.
○
Realizations were driven by $727.2 million from Multi-Strategy.
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Dry Powder
The following presents our Dry Powder as of quarter end of each period:
Note:
Totals may not add due to rounding.
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Net Accrued Performance Revenues
The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of June 30, 2026 and 2025. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 16. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in
“—Item 1. Financial Statements” of this filing. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues.
_(Dollars in Millions)_
| Line item | June 30, 2026 | June 30, 2025 |
| --- | --- | --- |
| Real Estate | | |
| BREP Global | $553 | $721 |
| BREP Europe | 81 | 27 |
| BREP Asia | 114 | 98 |
| BPP | 114 | 45 |
| BREDS | 30 | 32 |
| Total Real Estate (a) | 891 | 923 |
| Private Equity | | |
| BCP Global | 1,764 | 1,869 |
| BCP Asia | 262 | 344 |
| Energy/Energy Transition | 1,052 | 515 |
| Core Private Equity | 256 | 266 |
| Tactical Opportunities | 150 | 227 |
| Secondaries | 1,148 | 1,270 |
| Infrastructure | 936 | 247 |
| Life Sciences | 253 | 239 |
| BTAS/BXPE | 262 | 236 |
| Total Private Equity (a) | 6,081 | 5,212 |
| Credit & Insurance | 252 | 369 |
| Multi-Asset Investing | 243 | 103 |
| Total Blackstone Net Accrued Performance Revenues | $7,468 | $6,608 |
Note: Totals may not add due to rounding.
(a)
Real Estate and Private Equity include co-investments, as applicable.
For the twelve months ended June 30, 2026, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $4.6 billion, partially offset by net realized distributions of $3.8 billion.
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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.
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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 the Multi-Asset Investing segment was $582.2 million, $658.8 million and $724.3 million as of December 31, 2025, March 31, 2026 and June 30, 2026, respectively.
Perpetual Capital Total Assets Under Management was $555.6 billion as of June 30, 2026, an increase of $15.9 billion, compared to $539.7 billion as of March 31, 2026. Perpetual Capital Total Assets Under Management in our Private Equity and Credit & Insurance segments increased $11.4 billion and $4.1 billion, respectively.
Perpetual Capital Total Assets Under Management was $555.6 billion as of June 30, 2026, an increase of $31.9 billion, compared to $523.6 billion as of December 31, 2025. Perpetual Capital Total Assets Under Management in our Private Equity and Credit & Insurance segments increased $21.0 billion and $9.4 billion, respectively.
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Investment Records
Fund returns information 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.
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The following tables present the investment record of our significant and formerly significant carry/drawdown funds and select perpetual capital strategies from inception through June 30, 2026:
Carry/Drawdown Funds
_(Dollars/Euros in Thousands, Except Where Noted)_
| Fund (Investment Period Beginning Date / Ending Date) (a) | Committed Capital | Available Capital (b) | Unrealized Investments / Value | Unrealized Investments / MOIC (c) | Unrealized Investments / %Public | Realized Investments / Value | Realized Investments / MOIC (c) | Total Investments / Value | Total Investments / MOIC (c) | Net IRRs (d) / Realized | Net IRRs (d) / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 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 | — | 4,684,608 | 1.7x | 4,684,608 | 1.7x | 12% | 12% |
| BREP V (Dec 2005 / Feb 2007) | 5,539,418 | — | 2,331 | n/a | — | 13,468,476 | 2.3x | 13,470,807 | 2.3x | 11% | 11% |
| BREP VI (Feb 2007 / Aug 2011) | 11,060,122 | — | 1,748 | n/a | — | 27,765,450 | 2.5x | 27,767,198 | 2.5x | 13% | 13% |
| BREP VII (Aug 2011 / Apr 2015) | 13,506,800 | 845,588 | 867,492 | 0.4x | — | 29,432,126 | 2.1x | 30,299,618 | 1.9x | 17% | 14% |
| BREP VIII (Apr 2015 / Jun 2019) | 16,651,125 | 1,215,310 | 8,377,561 | 1.3x | 4% | 24,654,936 | 2.1x | 33,032,497 | 1.8x | 19% | 11% |
| BREP IX (Jun 2019 / Aug 2022) | 21,374,992 | 2,812,950 | 16,292,849 | 1.0x | 2% | 12,614,323 | 1.9x | 28,907,172 | 1.3x | 30% | 4% |
| *BREP X (Aug 2022 / Feb 2028) | 30,643,847 | 16,025,374 | 18,765,019 | 1.3x | 1% | 3,219,851 | 1.9x | 21,984,870 | 1.3x | 30% | 12% |
| Total Global BREP | $104,217,467 | $20,899,222 | $44,307,000 | 1.1x | 2% | $123,374,688 | 2.2x | $167,681,688 | 1.7x | 16% | 14% |
| 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 | 86,085 | 17,071 | 0.1x | — | 5,993,336 | 2.1x | 6,010,407 | 2.0x | 14% | 13% |
| BREP Europe IV (Sep 2013 / Dec 2016) | 6,676,611 | 598,954 | 624,365 | 0.6x | — | 10,438,878 | 1.9x | 11,063,243 | 1.7x | 16% | 11% |
| BREP Europe V (Dec 2016 / Oct 2019) | 8,007,488 | 597,691 | 3,724,421 | 0.7x | — | 6,902,190 | 3.8x | 10,626,611 | 1.4x | 40% | 5% |
| BREP Europe VI (Oct 2019 / Sep 2023) | 9,941,770 | 2,763,031 | 6,117,864 | 0.9x | 6% | 4,049,113 | 2.4x | 10,166,977 | 1.2x | 62% | 2% |
| *BREP Europe VII (Sep 2023 / Mar 2029) | 9,762,262 | 5,734,678 | 4,873,649 | 1.3x | 1% | 167,092 | 1.4x | 5,040,741 | 1.3x | n/m | 13% |
| Total BREP Europe | €40,047,471 | €9,780,439 | €15,357,370 | 0.9x | 3% | €31,506,811 | 2.2x | €46,864,181 | 1.5x | 16% | 9% |
continued...
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Carry/Drawdown Funds continued
_(Dollars/Euros in Thousands, Except Where Noted)_
| Fund (Investment Period Beginning Date / Ending Date) (a) | Committed Capital | Available Capital (b) | Unrealized Investments / Value | Unrealized Investments / MOIC (c) | Unrealized Investments / %Public | Realized Investments / Value | Realized Investments / MOIC (c) | Total Investments / Value | Total Investments / MOIC (c) | Net IRRs (d) / Realized | Net IRRs (d) / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Real Estate (continued) | | | | | | | | | | | |
| BREP Asia I (Jun 2013 / Dec 2017) | $4,262,075 | $646,265 | $1,209,142 | 1.7x | 51% | $7,685,485 | 2.0x | $8,894,627 | 1.9x | 15% | 12% |
| BREP Asia II (Dec 2017 / Mar 2022) | 7,361,035 | 1,178,550 | 4,995,177 | 1.1x | 26% | 3,404,324 | 1.6x | 8,399,501 | 1.3x | 11% | 3% |
| *BREP Asia III (Mar 2022 / Sep 2027) | 8,219,868 | 4,351,718 | 5,078,659 | 1.3x | 3% | 503,885 | 1.8x | 5,582,544 | 1.3x | 34% | 9% |
| Total BREP Asia | 19,842,978 | 6,176,533 | 11,282,978 | 1.3x | 18% | 11,593,694 | 1.8x | 22,876,672 | 1.5x | 14% | 7% |
| BREP Co-Investment (f) | 8,691,884 | 551,495 | 1,564,893 | 1.2x | — | 15,372,186 | 2.2x | 16,937,079 | 2.1x | 16% | 16% |
| Total BREP | $179,426,235 | $38,798,469 | $74,435,691 | 1.1x | 4% | $188,783,012 | 2.2x | $263,218,703 | 1.7x | 16% | 13% |
| *BREDS High-Yield (Various) (g) | $27,606,074 | $8,615,842 | $3,704,090 | 1.0x | — | $26,072,271 | 1.3x | $29,776,361 | 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 | — | — | n/a | — | 2,995,106 | 1.4x | 2,995,106 | 1.4x | 6% | 6% |
| BCP IV (Nov 2002 / Dec 2005) | 6,450,000 | — | — | n/a | — | 21,720,334 | 2.9x | 21,720,334 | 2.9x | 36% | 36% |
| BCP V (Dec 2005 / Jan 2011) | 21,009,112 | 982,018 | — | n/a | — | 38,870,191 | 1.9x | 38,870,191 | 1.9x | 8% | 8% |
| BCP VI (Jan 2011 / May 2016) | 15,192,032 | 1,340,945 | 2,127,333 | 3.1x | 4% | 30,730,898 | 2.2x | 32,858,231 | 2.2x | 13% | 12% |
| BCP VII (May 2016 / Feb 2020) | 18,873,411 | 1,309,645 | 13,928,047 | 1.5x | 33% | 24,466,786 | 2.6x | 38,394,833 | 2.1x | 24% | 12% |
| BCP VIII (Feb 2020 / Apr 2024) | 25,820,052 | 5,881,691 | 25,743,798 | 1.4x | 16% | 10,795,620 | 2.4x | 36,539,418 | 1.6x | 26% | 10% |
| *BCP IX (Apr 2024 / Apr 2030) | 21,829,911 | 18,396,522 | 5,316,361 | 1.5x | 1% | 293,543 | 1.5x | 5,609,904 | 1.5x | n/m | 24% |
| Energy I (Aug 2011 / Feb 2015) | 2,435,007 | 170,540 | — | n/a | — | 4,897,287 | 2.0x | 4,897,287 | 2.0x | 12% | 12% |
| Energy II (Feb 2015 / Feb 2020) | 4,926,378 | 778,845 | 3,236,286 | 2.6x | 72% | 6,342,126 | 1.8x | 9,578,412 | 2.0x | 9% | 9% |
| Energy III (Feb 2020 / Jun 2024) | 4,398,275 | 1,815,918 | 7,255,903 | 3.0x | 26% | 5,060,366 | 3.0x | 12,316,269 | 3.0x | 33% | 33% |
| Energy Transition IV (Jun 2024 / Jun 2026) | 5,880,459 | 2,763,373 | 6,518,880 | 2.0x | — | 157,155 | 1.7x | 6,676,035 | 2.0x | n/m | 94% |
| *Energy Transition V (Jun 2026 / Jun 2032) | 5,671,639 | 5,671,639 | — | n/a | — | — | n/a | — | n/a | n/a | n/a |
| BCP Asia I (Dec 2017 / Sep 2021) | 2,437,080 | 417,510 | 1,275,730 | 1.3x | 33% | 3,676,038 | 3.0x | 4,951,768 | 2.3x | 33% | 19% |
| *BCP Asia II (Sep 2021 / Sep 2027) | 6,843,926 | 3,570,292 | 6,463,390 | 1.9x | 15% | 1,041,893 | 3.4x | 7,505,283 | 2.0x | 93% | 27% |
| BCP Asia III (TBD) | 13,100,000 | 13,100,000 | — | n/a | — | — | n/a | — | n/a | n/a | n/a |
| Core Private Equity I (Jan 2017 / Mar 2021) (h) | 4,760,130 | 1,193,521 | 6,588,435 | 2.1x | — | 4,220,471 | 3.7x | 10,808,906 | 2.5x | 32% | 14% |
| *Core Private Equity II (Mar 2021 / Mar 2027) (h) | 8,244,519 | 6,007,302 | 5,420,354 | 1.5x | — | 2,081,525 | 4.2x | 7,501,879 | 1.8x | 38% | 16% |
| Total Corporate Private Equity | $176,196,864 | $63,399,761 | $83,874,517 | 1.7x | 18% | $171,588,411 | 2.3x | $255,462,928 | 2.0x | 16% | 15% |
continued...
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Carry/Drawdown Funds continued
_(Dollars/Euros in Thousands, Except Where Noted)_
| Fund (Investment Period Beginning Date / Ending Date) (a) | Committed Capital | Available Capital (b) | Unrealized Investments / Value | Unrealized Investments / MOIC (c) | Unrealized Investments / %Public | Realized Investments / Value | Realized Investments / MOIC (c) | Total Investments / Value | Total Investments / MOIC (c) | Net IRRs (d) / Realized | Net IRRs (d) / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Private Equity (continued) | | | | | | | | | | | |
| Tactical Opportunities | | | | | | | | | | | |
| *Tactical Opportunities (Various) | $33,780,643 | $14,441,280 | $13,027,191 | 1.2x | 2% | $32,984,254 | 1.9x | $46,011,445 | 1.6x | 15% | 10% |
| *Tactical Opportunities Co-Investment and Other (Various) | 10,477,806 | 1,084,293 | 3,558,538 | 1.3x | 3% | 12,089,490 | 1.8x | 15,648,028 | 1.7x | 18% | 15% |
| Total Tactical Opportunities | $44,258,449 | $15,525,573 | $16,585,729 | 1.2x | 2% | $45,073,744 | 1.9x | $61,659,473 | 1.6x | 16% | 11% |
| Growth | | | | | | | | | | | |
| BXG I (Jul 2020 / Feb 2025) | $4,961,566 | $292,405 | $5,152,451 | 1.2x | — | $670,399 | 1.3x | $5,822,850 | 1.2x | n/m | 2% |
| *BXG II (Feb 2025 / Feb 2030) | 4,610,169 | 3,742,666 | 854,654 | 1.1x | — | 9,154 | n/m | 863,808 | 1.1x | n/m | n/m |
| Total Growth | $9,571,735 | $4,035,071 | $6,007,105 | 1.2x | — | $679,553 | 1.3x | $6,686,658 | 1.2x | n/m | 2% |
| Strategic Partners (Secondaries) | | | | | | | | | | | |
| Strategic Partners I-V (Various) (i) | $11,035,527 | $9,572 | $2,126 | n/a | — | $16,796,758 | n/a | $16,798,884 | 1.7x | n/a | 13% |
| Strategic Partners VI (Apr 2014 / Apr 2016) (i) | 4,362,772 | 379,409 | 420,348 | n/a | — | 4,665,673 | n/a | 5,086,021 | 1.7x | n/a | 13% |
| Strategic Partners VII (May 2016 / Mar 2019) (i) | 7,489,970 | 1,605,255 | 2,258,612 | n/a | — | 8,553,876 | n/a | 10,812,488 | 1.9x | n/a | 15% |
| Strategic Partners Real Assets II (May 2017 / Jun 2020) (i) | 1,749,807 | 595,603 | 1,351,477 | n/a | — | 1,397,378 | n/a | 2,748,855 | 1.9x | n/a | 15% |
| Strategic Partners VIII (Mar 2019 / Oct 2021) (i) | 10,763,600 | 3,410,713 | 5,873,822 | n/a | — | 9,027,494 | n/a | 14,901,316 | 1.7x | n/a | 17% |
| *Strategic Partners Real Estate, SMA and Other (Various) (i) | 7,055,591 | 1,224,720 | 3,165,936 | n/a | — | 2,940,627 | n/a | 6,106,563 | 1.4x | n/a | 10% |
| Strategic Partners Infrastructure III (Jun 2020 / Jun 2024) (i) | 3,250,100 | 666,246 | 2,626,038 | n/a | — | 884,418 | n/a | 3,510,456 | 1.6x | n/a | 15% |
| Strategic Partners IX (Oct 2021 / Mar 2026) (i) | 19,692,625 | 1,504,371 | 19,455,372 | n/a | — | 1,307,669 | n/a | 20,763,041 | 1.5x | n/a | 17% |
| *Strategic Partners GP Solutions (Jun 2021 / Dec 2026) (i) | 2,095,211 | 342,116 | 1,295,854 | n/a | — | 94,182 | n/a | 1,390,036 | 1.1x | n/a | — |
| *Strategic Partners Infrastructure IV (Jul 2024 / Sep 2029) (i) | 4,837,949 | 3,501,386 | 406,950 | n/a | — | — | n/a | 406,950 | 1.9x | n/a | n/m |
| *Strategic Partners X (Mar 2026 / May 2031) | 11,024,493 | 8,606,558 | — | n/a | — | — | n/a | — | n/a | n/a | n/a |
| Total Strategic Partners (Secondaries) | $83,357,645 | $21,845,949 | $36,856,535 | n/a | — | $45,668,075 | n/a | $82,524,610 | 1.6x | n/a | 14% |
| Life Sciences | | | | | | | | | | | |
| Clarus IV (Jan 2018 / Jan 2020) | $910,000 | $40,291 | $517,753 | 2.0x | — | $817,615 | 1.6x | $1,335,368 | 1.7x | 10% | 9% |
| BXLS V (Jan 2020 / Mar 2025) | 5,056,620 | 2,303,560 | 5,195,969 | 2.1x | 1% | 1,854,239 | 1.8x | 7,050,208 | 2.0x | 11% | 17% |
| *BXLS VI (Mar 2025 / Mar 2031) | 6,486,870 | 6,375,163 | 437,377 | n/m | — | — | n/a | 437,377 | n/m | n/a | n/m |
continued...
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Carry/Drawdown Funds continued
_(Dollars/Euros in Thousands, Except Where Noted)_
| Fund (Investment Period Beginning Date / Ending Date) (a) | Committed Capital | Available Capital (b) | Unrealized Investments / Value | Unrealized Investments / MOIC (c) | Unrealized Investments / %Public | Realized Investments / Value | Realized Investments / MOIC (c) | Total Investments / Value | Total Investments / MOIC (c) | Net IRRs (d) / Realized | Net IRRs (d) / Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Credit | | | | | | | | | | | |
| Mezzanine / Opportunistic I (Jul 2007 / Oct 2011) | $2,000,000 | — | — | 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 | 57,792 | 0.5x | — | 6,687,961 | 1.4x | 6,745,753 | 1.4x | n/a | 9% |
| Mezzanine / Opportunistic III (Sep 2016 / Jan 2021) | 6,639,133 | 1,081,586 | 787,485 | 1.2x | — | 9,939,495 | 1.5x | 10,726,980 | 1.5x | n/a | 11% |
| Mezzanine / Opportunistic IV (Jan 2021 / Aug 2025) | 5,016,771 | 1,368,541 | 3,047,474 | 1.1x | — | 4,156,400 | 1.5x | 7,203,874 | 1.3x | n/a | 11% |
| *Mezzanine / Opportunistic V (Aug 2025 / Aug 2029) | 7,630,000 | 6,911,455 | 693,976 | 1.1x | — | 206,964 | 1.2x | 900,940 | 1.1x | n/a | n/m |
| Total Mezzanine / Opportunistic | 25,405,904 | 10,354,842 | 4,586,727 | 1.1x | — | 25,799,933 | 1.5x | 30,386,660 | 1.4x | n/a | 13% |
| 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 | — | n/a | — | 5,564,200 | 1.1x | 5,564,200 | 1.1x | n/a | — |
| Stressed / Distressed III (Dec 2017 / Dec 2022) | 7,356,380 | 1,085,652 | 1,022,304 | 1.2x | — | 5,934,391 | 1.3x | 6,956,695 | 1.3x | n/a | 9% |
| Total Stressed / Distressed | 15,734,523 | 1,633,082 | 1,022,304 | 1.2x | — | 17,275,689 | 1.2x | 18,297,993 | 1.2x | n/a | 7% |
| European Senior Debt I (Feb 2015 / Feb 2019) | €1,964,689 | €67,044 | €159,420 | 0.3x | — | €2,999,625 | 1.3x | €3,159,045 | 1.1x | n/a | 1% |
| European Senior Debt II (Jun 2019 / Jun 2023) (j) | 4,088,344 | 861,672 | 2,174,148 | 0.9x | — | 4,891,963 | 1.7x | 7,066,111 | 1.3x | n/a | 8% |
| Total European Senior Debt | €6,053,033 | €928,716 | €2,333,568 | 0.8x | — | €7,891,588 | 1.5x | €10,225,156 | 1.2x | n/a | 6% |
| Energy I (Nov 2015 / Nov 2018) | $2,856,867 | $1,154,819 | $70,845 | 1.3x | — | $3,556,730 | 1.5x | $3,627,575 | 1.5x | n/a | 10% |
| Energy II (Feb 2019 / Jun 2023) | 3,616,081 | 1,456,014 | 423,972 | 1.3x | 19% | 3,554,034 | 1.4x | 3,978,006 | 1.4x | n/a | 16% |
| *Energy III (May 2023 / May 2028) | 6,477,000 | 4,193,381 | 2,425,168 | 1.0x | — | 3,298,003 | 1.3x | 5,723,171 | 1.2x | n/a | 15% |
| Total Energy | 12,949,948 | 6,804,214 | 2,919,985 | 1.0x | 3% | 10,408,767 | 1.4x | 13,328,752 | 1.3x | n/a | 12% |
| Senior Direct Lending (Various) (k) | 2,820,243 | 1,233,828 | 2,692,761 | 1.1x | — | 341,891 | 1.2x | 3,034,652 | 1.1x | n/a | 9% |
| Total Credit Drawdown Funds (l) | $63,816,276 | $21,087,768 | $13,889,746 | 1.0x | 1% | $63,217,193 | 1.4x | $77,106,939 | 1.3x | n/a | 10% |
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Select Perpetual Capital Strategies (m)
_(Dollars in Thousands, Except Where Noted)_
| Strategy (Inception Year) (a) | Investment Strategy | Total Assets Under Management | Total Net Return (n) |
| --- | --- | --- | --- |
| Real Estate | | | |
| BPP - Blackstone Property Partners Platform (2013) (o) | Core+ Real Estate | $57,749,790 | 2% |
| BREIT - Blackstone Real Estate Income Trust (2017) (p) | Core+ Real Estate | 56,551,910 | 9% |
| BREIT - Class I (q) | Core+ Real Estate | | 9% |
| BXMT - Blackstone Mortgage Trust (2013) (r) | Real Estate Debt | 6,255,948 | 6% |
| Private Equity | | | |
| BXGP - Blackstone GP Stakes (2014) (s) | Minority GP Interests | 10,017,197 | 12% |
| BIP - Blackstone Infrastructure Partners (2019) (t) | Infrastructure | 74,964,704 | 18% |
| BXINFRA - Blackstone Infrastructure Strategies Fund Program (2025) (u) | Infrastructure | 5,979,642 | 15% |
| BXINFRA - Class I (v) | Infrastructure | | 16% |
| BXPE - Blackstone Private Equity Strategies Fund Program (2024) (w) | Private Equity | 25,312,193 | 19% |
| BXPE - Class I (x) | Private Equity | | 20% |
| Credit | | | |
| BXSL - Blackstone Secured Lending Fund (2018) (y) | U.S. Direct Lending | 16,585,488 | 11% |
| BCRED - Blackstone Private Credit Fund (2021) (z) | U.S. Direct Lending | 94,623,700 | 9% |
| BCRED - Class I (aa) | U.S. Direct Lending | | 9% |
| ECRED - Blackstone European Credit Fund (2022) (bb) | European Direct Lending | €5,248,866 | 9% |
| ECRED - Class I (cc) | European Direct Lending | | 9% |
### 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.
\*
For the carry/drawdown funds only, represents funds that are in their investment period as of June 30, 2026.
(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 June 30, 2026 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.
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(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 IRR represents the blended return across the commingled levered and unlevered funds within the strategy. Total net returns were 12% and 7%, respectively, for the levered and unlevered funds of the strategy.
(k)
Senior Direct Lending I IRR represents the blended return across the commingled levered and unlevered funds within the strategy. Total net returns were 10% and 7%, respectively, for the levered and unlevered funds of the strategy.
(l)
Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented.
(m)
Represents the performance for select perpetual capital strategies; strategies excluded consist primarily of (1) investment strategies that have been investing for less than one year, (2) perpetual capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does not earn fees.
(n)
Unless otherwise indicated, Total Net Return represents the annualized inception to June 30, 2026 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.
(o)
BPP represents the aggregate Total Assets Under Management and Total Net Return of the BPP Platform, which comprises over 30 fund, 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 June 30, 2026, these vehicles represented $4.4 billion of Total Assets Under Management.
(p)
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.
(q)
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.
(r)
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.
(s)
Blackstone GP Stakes (“BXGP”) 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. As of June 30, 2026, including vehicles that are not classified as Perpetual Capital and co-investment vehicles that do not pay fees, BXGP Total Assets Under Management was $13.1 billion.
(t)
BIP represents the aggregate Total Assets Under Management and Total Net Return of infrastructure-focused funds and co-investment vehicles for institutional investors with a primary focus on the U.S. and Europe. As of June 30, 2026, including co-investment vehicles that do not pay fees, BIP Total Assets Under Management was $85.6 billion.
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(u)
The BXINFRA Total Net Return reflects a per share blended return, assuming the BXINFRA fund program had a single vehicle and a single share class, reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BXINFRA. This return is not representative of the return experienced by any particular vehicle, investor or share class. For purposes of calculating the blended return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. Total Net Return is from January 2, 2025 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation. BXINFRA Total Assets Under Management reflects net asset value as of June 30, 2026. BXINFRA Total Assets Under Management, to the extent managed by a different business, is reported in such business for the purposes of segment Assets Under Management reporting.
(v)
Represents the blended Total Net Return for the BXINFRA fund program’s Class I shares, its largest share class across vehicles. Performance varies by vehicle and share class. Class I Total Net Return assumes reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by the Class I shares. For purposes of calculating the blended Class I return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. Class I Total Net Return is from January 2, 2025 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation.
(w)
The BXPE Total Net Return reflects a per share blended return, assuming the BXPE fund program had a single vehicle and a single share class, reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BXPE. This return is not representative of the return experienced by any particular vehicle, investor or share class. For purposes of calculating the blended return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. Total Net Return is from January 2, 2024 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation. BXPE Total Assets Under Management reflects net asset value as of June 30, 2026. BXPE Total Assets Under Management, to the extent managed by a different business, is reported in such business for the purposes of segment Assets Under Management reporting.
(x)
Represents the blended Total Net Return for the BXPE fund program’s Class I shares, its largest share class across vehicles. Performance varies by vehicle and share class. Class I Total Net Return assumes reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by the Class I shares. For purposes of calculating the blended Class I return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. Class I Total Net Return is from January 2, 2024 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation.
(y)
The BXSL Total Assets Under Management and Total Net Return are presented as of March 31, 2026. 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.
(z)
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 June 30, 2026 was $42.8 billion.
(aa)
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.
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(bb)
The ECRED Total Net Return reflects a per share blended return, assuming ECRED 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 ECRED. 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 October 3, 2022. Total Assets Under Management reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities as of June 30, 2026. ECRED net asset value as of June 30, 2026 was €2.6 billion.
(cc)
Represents the Total Net Return for ECRED’s Class I shares, its largest share class. Performance varies by share class. 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 ECRED. Class I Total Net Return is presented on an annualized basis and is from October 3, 2022.
### 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 EndedJune 30, | | 2026 vs. 2025 | | Six Months EndedJune 30, | | 2026 vs. 2025 | |
| | 2026 | 2025 | $% | % | 2026 | 2025 | $% | % |
| | (Dollars in Thousands) | | | | | | | |
| Management and Advisory Fees, Net | | | | | | | | |
| Base Management Fees | $630,097 | $673,154 | $(43,057) | -6% | $1,266,144 | $1,337,755 | $(71,611) | -5% |
| Transaction, Advisory and Other Fees, Net | 104,321 | 41,720 | 62,601 | 150% | 156,059 | 81,866 | 74,193 | 91% |
| Management Fee Offsets | (7,337) | (3,582) | (3,755) | 105% | (17,645) | (7,481) | (10,164) | 136% |
| Total Management and Advisory Fees, Net | 727,081 | 711,292 | 15,789 | 2% | 1,404,558 | 1,412,140 | (7,582) | -1% |
| Fee Related Performance Revenues | 242,718 | 89,590 | 153,128 | 171% | 395,716 | 127,393 | 268,323 | 211% |
| Fee Related Compensation | (262,168) | (170,209) | (91,959) | 54% | (455,305) | (340,734) | (114,571) | 34% |
| Other Operating Expenses | (94,624) | (87,048) | (7,576) | 9% | (184,824) | (170,329) | (14,495) | 9% |
| Fee Related Earnings | 613,007 | 543,625 | 69,382 | 13% | 1,160,145 | 1,028,470 | 131,675 | 13% |
| Realized Performance Revenues | 210,868 | 43,587 | 167,281 | 384% | 252,942 | 62,597 | 190,345 | 304% |
| Realized Performance Compensation | (85,259) | (24,139) | (61,120) | 253% | (108,215) | (32,909) | (75,306) | 229% |
| Realized Principal Investment Income (Loss) | 6,660 | 2,797 | 3,863 | 138% | (2,145) | 3,146 | (5,291) | n/m |
| Net Realizations | 132,269 | 22,245 | 110,024 | 495% | 142,582 | 32,834 | 109,748 | 334% |
| Segment Distributable Earnings | $745,276 | $565,870 | $179,406 | 32% | $1,302,727 | $1,061,304 | $241,423 | 23% |
n/m
Not meaningful.
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Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Segment Distributable Earnings were $745.3 million for the three months ended June 30, 2026, an increase of $179.4 million, compared to $565.9 million for the three months ended June 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $110.0 million in Net Realizations and of $69.4 million in Fee Related Earnings.
Overall values in our real estate segment appreciated modestly in the second quarter of 2026, led by strength in digital infrastructure and partly offset by declines in life science office and certain other areas. Despite elevated base rates and volatility from the ongoing conflict in the Middle East continuing to weigh on transaction activity, debt capital markets continued to exhibit strength in the quarter. While the overall recovery in commercial real estate has also been impacted by the increase in base rates, we believe there are a number of positive factors that should support values in our Real Estate portfolio over time. In addition to favorable debt capital markets, these factors include strong fundamentals in digital infrastructure, a meaningful re-acceleration of U.S. leasing activity in our logistics portfolio and declining new supply, including in rental housing. These three sectors represent a substantial portion of our overall real estate equity portfolio.
Fee Related Earnings
Fee Related Earnings were $613.0 million for the three months ended June 30, 2026, an increase of $69.4 million, compared to $543.6 million for the three months ended June 30, 2025. The increase in Fee Related Earnings was attributable to an increase of $153.1 million in Fee Related Performance Revenues, partially offset by an increase of $92.0 million in Fee Related Compensation.
Fee Related Performance Revenues were $242.7 million for the three months ended June 30, 2026, an increase of $153.1 million, compared to $89.6 million for the three months ended June 30, 2025. The increase was attributable to higher Fee Related Performance Revenues in BREIT.
Fee Related Compensation was $262.2 million for the three months ended June 30, 2026, an increase of $92.0 million, compared to $170.2 million for the three months ended June 30, 2025. The increase was primarily attributable to the increase in Fee Related Performance Revenues, on which a portion of Fee Related Compensation is based.
Net Realizations
Net Realizations were $132.3 million for the three months ended June 30, 2026, an increase of $110.0 million, compared to $22.2 million for the three months ended June 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $167.3 million in Realized Performance Revenues, partially offset by an increase of $61.1 million in Realized Performance Compensation.
Realized Performance Revenues were $210.9 million for the three months ended June 30, 2026, an increase of $167.3 million, compared to $43.6 million for the three months ended June 30, 2025. The increase was primarily attributable to higher Realized Performance Revenues in BREP.
Realized Performance Compensation was $85.3 million for three months ended June 30, 2026, an increase of $61.1 million, compared to $24.1 million for the three months ended June 30, 2025. The increase was primarily attributable to the increase in Realized Performance Revenues.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Segment Distributable Earnings were $1.3 billion for the six months ended June 30, 2026, an increase of $241.4 million, compared to $1.1 billion for the six months ended June 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $131.7 million in Fee Related Earnings and of $109.7 million in Net Realizations.
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Fee Related Earnings
Fee Related Earnings were $1.2 billion for the six months ended June 30, 2026, an increase of $131.7 million, compared to $1.0 billion for the six months ended June 30, 2025. The increase in Fee Related Earnings was attributable to an increase of $268.3 million in Fee Related Performance Revenues, partially offset by an increase of $114.6 million in Fee Related Compensation.
Fee Related Performance Revenues were $395.7 million for the six months ended June 30, 2026, an increase of $268.3 million, compared to $127.4 million for the six months ended June 30, 2025. The increase was attributable to higher Fee Related Performance Revenues in BREIT.
Fee Related Compensation were $455.3 million for the six months ended June 30, 2026, an increase of $114.6 million, compared to $340.7 million for the six months ended June 30, 2025. The increase was primarily attributable to the increase in Fee Related Performance Revenues, on which a portion of Fee Related Compensation is based.
Net Realizations
Net Realizations were $142.6 million for the six months ended June 30, 2026, an increase of $109.7 million, compared to $32.8 million for the six months ended June 30, 2025. The increase in Net Realizations was attributable to an increase of $190.3 million in Realized Performance Revenues, partially offset by an increase of $75.3 million in Realized Performance Compensation.
Realized Performance Revenues were $252.9 million for the six months ended June 30, 2026, an increase of $190.3 million, compared to $62.6 million for the six months ended June 30, 2025. The increase was primarily attributable to higher Realized Performance Revenues in BREP.
Realized Performance Compensation was $108.2 million for the six months ended June 30, 2026, an increase of $75.3 million, compared to $32.9 million for the six months ended June 30, 2025. The increase was primarily attributable to the increase in Realized Performance Revenues.
Fund Returns
Fund return information 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.
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The following table presents the internal rates of return, except where noted, of our significant real estate funds:
| Fund (a) | Three Months Ended / June 30, 2026 / Gross | Three Months Ended / June 30, 2026 / Net | Three Months Ended / June 30, 2025 / Gross | Three Months Ended / June 30, 2025 / Net | Six Months Ended / June 30, 2026 / Gross | Six Months Ended / June 30, 2026 / Net | Six Months Ended / June 30, 2025 / Gross | Six Months Ended / June 30, 2025 / Net | June 30, 2026 / Inception to Date / Realized / Gross | June 30, 2026 / Inception to Date / Realized / Net | June 30, 2026 / Inception to Date / Total / Gross | June 30, 2026 / Inception to Date / Total / Net |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BREP VIII | -2% | -2% | -1% | -1% | -4% | -4% | -2% | -2% | 26% | 19% | 16% | 11% |
| BREP IX | -4% | -4% | -2% | 0% | -8% | -8% | -3% | -2% | 46% | 30% | 8% | 4% |
| BREP X | 8% | 6% | 4% | 2% | 12% | 8% | 11% | 7% | 45% | 30% | 24% | 12% |
| BREP Europe V (b) | -7% | -5% | -2% | -2% | -7% | -6% | -1% | -2% | 49% | 40% | 9% | 5% |
| BREP Europe VI (b) | -3% | -3% | -3% | -2% | -8% | -8% | -8% | -7% | 87% | 62% | 7% | 2% |
| BREP Europe VII (b) | 4% | 2% | 4% | 4% | 10% | 6% | 8% | 4% | n/m | n/m | 27% | 13% |
| BREP Asia II | -1% | -2% | 1% | 1% | -6% | -6% | 3% | 2% | 17% | 11% | 6% | 3% |
| BREP Asia III | 4% | 2% | 6% | 5% | 15% | 11% | 15% | 12% | 65% | 34% | 17% | 9% |
| BREP Co-Investment (c) | 1% | 1% | -1% | -1% | 3% | 1% | 0% | 0% | 18% | 16% | 18% | 16% |
| BPP (d) | -3% | -4% | -2% | -3% | -4% | -5% | -2% | -3% | n/a | n/a | 4% | 2% |
| BREIT (e) | n/a | 3% | n/a | 1% | n/a | 5% | n/a | 3% | n/a | n/a | n/a | 9% |
| BREIT - Class I (f) | n/a | 3% | n/a | 1% | n/a | 5% | n/a | 3% | n/a | n/a | n/a | 9% |
| BREDS High-Yield (g) | 2% | 1% | 3% | 2% | 4% | 3% | 7% | 5% | 14% | 10% | 14% | 9% |
| BXMT (h) | n/a | -9% | n/a | -1% | n/a | -7% | n/a | 16% | 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)
Reflects an internal rate of return for euro-denominated investors in these funds.
(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 fund, co-investment and separately managed account vehicles, represents the Core+ real estate funds that 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 the 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.
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Funds With Closed Investment Periods as of June 30, 2026
The Real Estate segment has thirteen funds with closed investment periods as of June 30, 2026: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of June 30, 2026, BREP VII, BREP VI, BREP V, BREP Europe IV, BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all remaining investments were valued at zero. BREP VIII, BREDS IV and BREDS III were above their carried interest thresholds as of June 30, 2026, while BREP IX, BREP Asia II, BREP Europe VI, and BREP Europe V were below their carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.
### Private Equity
The following table presents the results of operations for our Private Equity segment:
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Three Months EndedJune 30, | | 2026 vs. 2025 | | Six Months EndedJune 30, | | 2026 vs. 2025 | |
| | 2026 | 2025 | $% | % | 2026 | 2025 | $% | % |
| | (Dollars in Thousands) | | | | | | | |
| Management and Advisory Fees, Net | | | | | | | | |
| Base Management Fees | $681,444 | $605,068 | $76,376 | 13% | $1,341,435 | $1,183,512 | $157,923 | 13% |
| Transaction, Advisory and Other Fees, Net | 124,921 | 108,988 | 15,933 | 15% | 275,859 | 163,208 | 112,651 | 69% |
| Management Fee Offsets | (11,785) | (7,758) | (4,027) | 52% | (20,792) | (18,630) | (2,162) | 12% |
| Total Management and Advisory Fees, Net | 794,580 | 706,298 | 88,282 | 12% | 1,596,502 | 1,328,090 | 268,412 | 20% |
| Fee Related Performance Revenues | 391,387 | 192,331 | 199,056 | 103% | 562,084 | 253,235 | 308,849 | 122% |
| Fee Related Compensation | (337,528) | (266,925) | (70,603) | 26% | (600,341) | (470,244) | (130,097) | 28% |
| Other Operating Expenses | (131,515) | (112,300) | (19,215) | 17% | (244,443) | (215,194) | (29,249) | 14% |
| Fee Related Earnings | 716,924 | 519,404 | 197,520 | 38% | 1,313,802 | 895,887 | 417,915 | 47% |
| Realized Performance Revenues | 490,807 | 408,980 | 81,827 | 20% | 1,128,796 | 759,053 | 369,743 | 49% |
| Realized Performance Compensation | (251,204) | (196,824) | (54,380) | 28% | (545,740) | (367,965) | (177,775) | 48% |
| Realized Principal Investment Income | 24,952 | 19,859 | 5,093 | 26% | 70,300 | 29,035 | 41,265 | 142% |
| Net Realizations | 264,555 | 232,015 | 32,540 | 14% | 653,356 | 420,123 | 233,233 | 56% |
| Segment Distributable Earnings | $981,479 | $751,419 | $230,060 | 31% | $1,967,158 | $1,316,010 | $651,148 | 49% |
n/m
Not meaningful.
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Segment Distributable Earnings were $981.5 million for the three months ended June 30, 2026, an increase of $230.1 million, compared to $751.4 million for the three months ended June 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $197.5 million in Fee Related Earnings and of $32.5 million in Net Realizations.
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Our Private Equity segment generated strong performance across strategies in the second quarter of 2026, led by the performance of digital infrastructure investments and the energy portfolio. Fundraising in our drawdown and perpetual vehicles was strong across multiple strategies, underpinned by broad-based demand from institutional clients and in the private wealth channel.
In Corporate Private Equity, our operating companies exhibited solid revenue growth and healthy margins. The ongoing conflict in the Middle East has had the effect of slowing overall realization activity in the near term. Nevertheless, we have continued to take advantage of the initial public offerings market, which has strengthened considerably and should provide the foundation for greater realizations over time, particularly with improvement in geopolitical conditions.
The potential for artificial intelligence-driven disruption has recently weighed on equity capital markets and valuations of companies in certain sectors, such as software. We believe the ultimate impact of such disruption will vary significantly across companies based on multiple factors, with a number of companies well-positioned to be protected or benefit from such disruption. Nonetheless, valuations of select software companies have been and may be negatively impacted going forward.
Fee Related Earnings
Fee Related Earnings were $716.9 million for the three months ended June 30, 2026, an increase of $197.5 million, compared to $519.4 million for the three months ended June 30, 2025. The increase in Fee Related Earnings was primarily attributable to increases of $199.1 million in Fee Related Performance Revenues and $88.3 million in Management and Advisory Fees, Net, partially offset by an increase of $70.6 million in Fee Related Compensation.
Fee Related Performance Revenues were $391.4 million for the three months ended June 30, 2026, an increase of $199.1 million, compared to $192.3 million for the three months ended June 30, 2025. The increase was primarily attributable to higher performance revenues in BXPE and crystallization of performance revenues in BXINFRA.
Management and Advisory Fees, Net were $794.6 million for the three months ended June 30, 2026, an increase of $88.3 million, compared to $706.3 million for the three months ended June 30, 2025, primarily attributable to an increase in Base Management Fees. Base Management Fees increased $76.4 million, primarily attributable to increased Fee-Earning Assets Under Management in BXPE, BIP and BXINFRA.
Fee Related Compensation was $337.5 million for the three months ended June 30, 2026, an increase of $70.6 million, compared to $266.9 million for the three months ended June 30, 2025. The increase was primarily attributable to increases in Fee Related Performance Revenues and Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations
Net Realizations were $264.6 million for the three months ended June 30, 2026, an increase of $32.5 million, compared to $232.0 million for the three months ended June 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $81.8 million in Realized Performance Revenues, partially offset by an increase of $54.4 million in Realized Performance Compensation.
Realized Performance Revenues were $490.8 million for the three months ended June 30, 2026, an increase of $81.8 million, compared to $409.0 million for the three months ended June 30, 2025. The increase was primarily attributable to increases in Realized Performance Revenues in Corporate Private Equity.
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Realized Performance Compensation was $251.2 million for the three months ended June 30, 2026, an increase of $54.4 million, compared to $196.8 million for the three months ended June 30, 2025. The increase was primarily attributable to increases in Realized Performance Revenues.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Segment Distributable Earnings were $2.0 billion for the six months ended June 30, 2026, an increase of $651.1 million, compared to $1.3 billion for the six months ended June 30, 2025. The increase in Segment Distributable Earnings was attributable to an increase of $417.9 million in Fee Related Earnings and an increase of $233.2 million in Net Realizations.
Fee Related Earnings
Fee Related Earnings were $1.3 billion for the six months ended June 30, 2026, an increase of $417.9 million, compared to $895.9 million for the six months ended June 30, 2025. The increase in Fee Related Earnings was primarily attributable to increases of $308.8 million in Fee Related Performance Revenues and $268.4 million in Management and Advisory Fees, Net, partially offset by an increase of $130.1 million in Fee Related Compensation.
Fee Related Performance Revenues were $562.1 million for the six months ended June 30, 2026, an increase of $308.8 million compared to $253.2 million for the six months ended June 30, 2025. The increase was primarily attributable to higher performance revenues in BXPE and crystallization of performance revenues in BXINFRA.
Management and Advisory Fees, Net were $1.6 billion for the six months ended June 30, 2026, an increase of $268.4 million compared to $1.3 billion for the six months ended June 30, 2025, primarily attributable to increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $157.9 million primarily attributable to increased Fee-Earning Assets Under Management in BXPE and BIP. Transaction, Advisory and Other Fees, Net increased $112.7 million, primarily attributable to increased volume of deal activity in BXCM.
Fee Related Compensation was $600.3 million for the six months ended June 30, 2026, an increase of $130.1 million, compared to $470.2 million for the six months ended June 30, 2025. The increase was primarily attributable to increases in Fee Related Performance Revenues and Management and Advisory Fees, Net, both of which impact Fee Related Compensation.
Net Realizations
Net Realizations were $653.4 million for the six months ended June 30, 2026, an increase of $233.2 million, compared to $420.1 million for the six months ended June 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $369.7 million in Realized Performance Revenues, partially offset by an increase of $177.8 million in Realized Performance Compensation.
Realized Performance Revenues were $1.1 billion for the six months ended June 30, 2026, an increase of $369.7 million, compared to $759.1 million for the six months ended June 30, 2025. The increase was primarily attributable to increases in Realized Performance Revenues in Corporate Private Equity and Tactical Opportunities.
Realized Performance Compensation was $545.7 million for the six months ended June 30, 2026, an increase of $177.8 million, compared to $368.0 million for the six months ended June 30, 2025. The increase was primarily attributable to the increase in Realized Performance Revenues.
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Fund Returns
Fund returns information 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:
| Fund (a) | Three Months Ended June 30, 2026 / Gross | Three Months Ended June 30, 2026 / Net | Three Months Ended June 30, 2025 / Gross | Three Months Ended June 30, 2025 / Net | Six Months Ended June 30, 2026 / Gross | Six Months Ended June 30, 2026 / Net | Six Months Ended June 30, 2025 / Gross | Six Months Ended June 30, 2025 / Net | June 30, 2026Inception to Date / Realized / Gross | June 30, 2026Inception to Date / Realized / Net | June 30, 2026Inception to Date / Total / Gross | June 30, 2026Inception to Date / Total / Net |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BCP VI | -4% | -4% | 2% | 2% | -7% | -5% | 3% | 2% | 17% | 13% | 16% | 12% |
| BCP VII | -1% | -1% | 6% | 5% | -3% | -3% | 9% | 7% | 30% | 24% | 17% | 12% |
| BCP VIII | 2% | 1% | 5% | 4% | 0% | 0% | 7% | 4% | 35% | 26% | 16% | 10% |
| BCP IX | 6% | 3% | 19% | 5% | 10% | 2% | 19% | 5% | n/m | n/m | 101% | 24% |
| BCP Asia I | -2% | -2% | 12% | 10% | -17% | -15% | 3% | 3% | 47% | 33% | 29% | 19% |
| BCP Asia II | 9% | 7% | 17% | 14% | 11% | 8% | 10% | 6% | 141% | 93% | 46% | 27% |
| BEP II | 2% | 2% | -7% | -6% | 35% | 28% | -9% | -9% | 13% | 9% | 13% | 9% |
| BEP III | 9% | 8% | 3% | 2% | 55% | 47% | 3% | 2% | 46% | 33% | 46% | 33% |
| BETP IV | 26% | 22% | 10% | 6% | 38% | 31% | 49% | 33% | n/m | n/m | 142% | 94% |
| BCEP I | -1% | -1% | 1% | 1% | -3% | -3% | 1% | 1% | 36% | 32% | 17% | 14% |
| BCEP II | 6% | 4% | 5% | 5% | 8% | 6% | 10% | 8% | 42% | 38% | 21% | 16% |
| Tactical Opportunities | 5% | 3% | 4% | 2% | 10% | 6% | 7% | 4% | 18% | 15% | 15% | 10% |
| Tactical Opportunities Co-Investment and Other | 1% | 0% | 6% | 5% | 2% | 2% | 12% | 8% | 20% | 18% | 18% | 15% |
| Clarus IV | 0% | 0% | -1% | -1% | 4% | 3% | -1% | -2% | 14% | 10% | 14% | 9% |
| BXLS V | 2% | 2% | 10% | 8% | 8% | 6% | 15% | 12% | 19% | 11% | 27% | 17% |
| BXG I | -1% | -2% | 1% | 0% | 7% | 6% | 5% | 2% | n/m | n/m | 6% | 2% |
| BXPE (b) | n/a | 8% | n/a | 6% | n/a | 13% | n/a | 10% | n/a | n/a | n/a | 19% |
| BXPE - Class I (c) | n/a | 8% | n/a | 6% | n/a | 13% | n/a | 10% | n/a | n/a | n/a | 20% |
| BIP (d) | 7% | 6% | 3% | 2% | 19% | 14% | 11% | 10% | n/a | n/a | 23% | 18% |
| BXINFRA (e) | n/a | 6% | n/a | 2% | n/a | 10% | n/a | 5% | n/a | n/a | n/a | 15% |
| BXINFRA - Class I (f) | n/a | 6% | n/a | 2% | n/a | 11% | n/a | 5% | n/a | n/a | n/a | 16% |
| Strategic Partners VII (g) | -1% | -1% | 1% | 0% | -2% | -2% | 0% | -1% | n/a | n/a | 19% | 15% |
| Strategic Partners Real Assets II (g) | 4% | 4% | 9% | 8% | 4% | 3% | 11% | 10% | n/a | n/a | 18% | 15% |
| Strategic Partners VIII (g) | -3% | -3% | 2% | 1% | -6% | -7% | 1% | 0% | n/a | n/a | 23% | 17% |
| Strategic Partners Real Estate, SMA and Other (g) | -1% | -1% | -1% | -1% | 5% | 5% | 2% | 1% | n/a | n/a | 12% | 10% |
| Strategic Partners Infrastructure III (g) | 1% | 1% | 4% | 4% | 2% | 2% | 5% | 4% | n/a | n/a | 20% | 15% |
| Strategic Partners IX (g) | 4% | 3% | 14% | 12% | 6% | 5% | 15% | 13% | n/a | n/a | 24% | 17% |
| Strategic Partners GP Solutions (g) | 0% | 0% | 4% | 4% | 1% | 0% | 1% | 0% | n/a | n/a | 3% | 0% |
| BXGP (h) | 4% | 3% | 3% | 2% | 0% | -1% | 10% | 8% | n/a | n/a | 19% | 12% |
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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)
Reflects a per share blended return for each respective period, assuming BXPE had a single vehicle and a single share class, reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BXPE. These returns are not representative of the returns experienced by any particular vehicle, investor or share class. For purposes of calculating the blended return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. Inception to date returns are presented on an annualized basis and are from January 2, 2024 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation.
(c)
Represents the blended returns for BXPE’s Class I shares, its largest share class across vehicles. Performance varies by vehicle and share class. Class I Total Net Return assumes reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by the Class I shares. For purposes of calculating the blended Class I return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. The Class I Total Net Return is from January 2, 2024 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation.
(d)
Gross and net returns reflect infrastructure-focused funds for institutional investors.
(e)
Represents a per share blended return for each respective period, assuming BXINFRA had a single vehicle and a single share class, reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BXINFRA. These returns are not representative of the returns experienced by any particular vehicle, investor or share class. For purposes of calculating the blended return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. Inception to date returns are presented on an annualized basis and are from January 2, 2025 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation.
(f)
Represents the blended returns for BXINFRA Class I shares, its largest share class across vehicles. Performance varies by vehicle and share class. Class I Total Net Return assumes reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by the Class I shares. For purposes of calculating the blended Class I return, U.S. dollar equivalent returns have been included for share classes that are denominated in a foreign currency that are not hedged. The Class I Total Net Return is from January 2, 2025 and any share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation.
(g)
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.
(h)
Blackstone GP Stakes (“BXGP”) gross and net returns represent BSCH I and II funds that invest as part of the Secondaries GP Stakes strategy. Returns include performance of investments in four public-market general partner stakes acquired in BSCH I, prior to a shift in BXGP’s strategy in 2017 to focus exclusively on private-markets general partners.
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Funds With Closed Investment Periods as of June 30, 2026
Corporate Private Equity has eleven funds with closed investment periods: BCP IV, BCP V, BCP VI, BCP VII, BCP VIII, BEP I, BEP II, BEP III, BETP IV, BCEP I and BCP Asia I. 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. Each of the above-mentioned funds 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 has various funds with closed investment periods, which are each above their carried interest thresholds based on aggregate fund position. Blackstone Growth has one fund with a closed investment period, BXG I, which is not above its carried interest threshold. Secondaries has various funds with closed investment periods, including but not limited to: Strategic Partners Infrastructure III, Strategic Partners IX, Strategic Partners Real Estate VII and BSCH I which are above their respective carried interest thresholds based on aggregate fund position. Blackstone Life Sciences has funds with a closed investment period: Clarus IV, BXLS V and BXLS Yield, which are each above their carried interest thresholds.
### Credit & Insurance
The following table presents the results of operations for our Credit & Insurance segment:
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Three Months EndedJune 30, | | 2026 vs. 2025 | | Six Months EndedJune 30, | | 2026 vs. 2025 | |
| | 2026 | 2025 | $% | % | 2026 | 2025 | $% | % |
| | (Dollars in Thousands) | | | | | | | |
| Management and Advisory Fees, Net | | | | | | | | |
| Base Management Fees | $493,622 | $467,657 | $25,965 | 6% | $1,003,469 | $910,880 | $92,589 | 10% |
| Transaction, Advisory and Other Fees, Net | 91,769 | 13,980 | 77,789 | 556% | 102,397 | 29,460 | 72,937 | 248% |
| Management Fee Offsets | (12,635) | (11,010) | (1,625) | 15% | (24,623) | (22,669) | (1,954) | 9% |
| Total Management and Advisory Fees, Net | 572,756 | 470,627 | 102,129 | 22% | 1,081,243 | 917,671 | 163,572 | 18% |
| Fee Related Performance Revenues | 159,286 | 190,129 | (30,843) | -16% | 323,689 | 385,337 | (61,648) | -16% |
| Fee Related Compensation | (237,568) | (220,305) | (17,263) | 8% | (464,061) | (421,923) | (42,138) | 10% |
| Other Operating Expenses | (124,404) | (107,426) | (16,978) | 16% | (238,967) | (203,704) | (35,263) | 17% |
| Fee Related Earnings | 370,070 | 333,025 | 37,045 | 11% | 701,904 | 677,381 | 24,523 | 4% |
| Realized Performance Revenues | 11,540 | 87,393 | (75,853) | -87% | 89,666 | 178,990 | (89,324) | -50% |
| Realized Performance Compensation | (3,746) | (30,433) | 26,687 | -88% | (34,943) | (70,928) | 35,985 | -51% |
| Realized Principal Investment Income (Loss) | (4,622) | 5,800 | (10,422) | n/m | (10,327) | 113,703 | (124,030) | n/m |
| Net Realizations | 3,172 | 62,760 | (59,588) | -95% | 44,396 | 221,765 | (177,369) | -80% |
| Segment Distributable Earnings | $373,242 | $395,785 | $(22,543) | -6% | $746,300 | $899,146 | $(152,846) | -17% |
n/m
Not meaningful.
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Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Segment Distributable Earnings were $373.2 million for the three months ended June 30, 2026, a decrease of $22.5 million, compared to $395.8 million for the three months ended June 30, 2025. The decrease in Segment Distributable Earnings was attributable to a decrease of $59.6 million in Net Realizations, partially offset by an increase of $37.0 million in Fee Related Earnings.
Our Credit & Insurance segment demonstrated stability and increasing diversification in the second quarter of 2026 amid a volatile market environment. Overall increased levels of financing and investment activity contributed to strong transaction and advisory fees and overall growth in fee revenues. Our non-investment grade private credit strategies generated modest returns, reflecting strong interest income and stable underlying credit performance across the majority of our holdings but offset by markdowns in select underperforming credits.
Fundraising in our Credit & Insurance segment was strong in the second quarter of 2026, benefitting from strong engagement with institutions across our non-investment grade strategies and long-term structural shifts in investment grade private credit. Opportunities for corporate and bank partnerships should also support momentum in investment grade private credit strategies.
In our perpetual private wealth strategies, redemption requests in BCRED remain elevated due, in large part, to heightened press and market attention around private credit, as well as concerns about decelerating performance. Concurrently, subscriptions to BCRED, albeit solid, decelerated from the prior quarter, resulting in net outflows in the second quarter of 2026. While net flows are likely to continue to be negatively impacted in light of the current market environment, so far in the third quarter redemption requests are significantly lower relative to the same time in the second quarter.
While defaults in direct lending have risen and we expect will continue to rise from a historically low level, our Credit & Insurance segment funds’ holdings are predominantly in senior secured credit with significant equity subordination from institutional borrowers. We believe this should position our Credit & Insurance segment well. The potential for artificial intelligence-driven disruption has also recently weighed on the capital markets and on valuations of companies in certain sectors, such as software. We believe the ultimate impact of such disruption will vary significantly across companies based on multiple factors, with a number of companies well-positioned to be protected or benefit from such disruption. Although the extent of our equity cushion in many of our software holdings provides a level of protection, valuations of select software holdings have been and may be negatively impacted going forward.
Fee Related Earnings
Fee Related Earnings were $370.1 million for the three months ended June 30, 2026, an increase of $37.0 million, compared to $333.0 million for the three months ended June 30, 2025. The increase in Fee Related Earnings was attributable to an increase of $102.1 million in Management and Advisory Fees, Net, partially offset by a decrease of $30.8 million in Fee Related Performance Revenues and an increase of $17.3 million in Fee Related Compensation.
Management and Advisory Fees, Net were $572.8 million for the three months ended June 30, 2026, an increase of $102.1 million, compared to $470.6 million for the three months ended June 30, 2025, primarily attributable to increases in Transaction, Advisory and Other Fees, Net and Base Management Fees. Transaction, Advisory and Other Fees, Net increased $77.8 million, primarily attributable to capital markets advisory revenues. Beginning in the three months ended June 30, 2026, capital markets advisory revenues generated in connection with certain financing transactions in infrastructure and asset based credit strategies are presented in the Credit & Insurance segment. Previously, all capital markets advisory revenues were included in the Private Equity segment as part of the BXCM business. Base Management Fees increased $26.0 million, primarily attributable to an increase in Fee-Earning Assets Under Management in our insurance platform.
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Fee Related Performance Revenues were $159.3 million for the three months ended June 30, 2026, a decrease of $30.8 million, compared to $190.1 million for the three months ended June 30, 2025. The decrease was primarily attributable to lower Fee Related Performance Revenues in BXSL.
Fee Related Compensation was $237.6 million for the three months ended June 30, 2026, an increase of $17.3 million, compared to $220.3 million for the three months ended June 30, 2025. The increase was primarily attributable to an increase in Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations
Net Realizations were $3.2 million for the three months ended June 30, 2026, a decrease of $59.6 million, compared to $62.8 million for the three months ended June 30, 2025. The decrease in Net Realizations was attributable to a decrease of $75.9 million in Realized Performance Revenues, partially offset by a decrease of $26.7 million in Realized Performance Compensation.
Realized Performance Revenues were $11.5 million for the three months ended June 30, 2026, a decrease of $75.9 million, compared to $87.4 million for the three months ended June 30, 2025. The decrease was primarily attributable to decreases in Realized Performance Revenues in private corporate credit funds.
Realized Performance Compensation was $3.7 million for the three months ended June 30, 2026, a decrease of $26.7 million, compared to $30.4 million for the three months ended June 30, 2025. The decrease was primarily attributable to the decrease in Realized Performance Revenues.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Segment Distributable Earnings were $746.3 million for the six months ended June 30, 2026, a decrease of $152.8 million, compared to $899.1 million for the six months ended June 30, 2025. The decrease in Segment Distributable Earnings was attributable to a decrease of $177.4 million in Net Realizations, partially offset by an increase of $24.5 million in Fee Related Earnings.
Fee Related Earnings
Fee Related Earnings were $701.9 million for the six months ended June 30, 2026, an increase of $24.5 million, compared to $677.4 million for the six months ended June 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $163.6 million in Management and Advisory Fees, Net, partially offset by a decrease of $61.6 million in Fee Related Performance Revenues and an increase of $42.1 million in Fee Related Compensation.
Management and Advisory Fees, Net were $1.1 billion for the six months ended June 30, 2026, an increase of $163.6 million, compared to $917.7 million for the six months ended June 30, 2025, primarily attributable to increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $92.6 million, primarily attributable to an increase in Fee-Earning Assets Under Management in private corporate credit. Transaction, Advisory and Other Fees, Net increased $72.9 million, primarily attributable to capital markets advisory revenues in infrastructure and asset based credit.
Fee Related Performance Revenues were $323.7 million for the six months ended June 30, 2026, a decrease of $61.6 million, compared to $385.3 million for the six months ended June 30, 2025. The decrease was primarily attributable to lower Fee Related Performance Revenues in BXSL.
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Fee Related Compensation was $464.1 million for the six months ended June 30, 2026, an increase of $42.1 million, compared to $421.9 million for the six months ended June 30, 2025. The increase was primarily attributable to an increase in Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations
Net Realizations were $44.4 million for the six months ended June 30, 2026, a decrease of $177.4 million, compared to $221.8 million for the six months ended June 30, 2025. The decrease in Net Realizations was primarily attributable to decreases of $124.0 million in Realized Principal Investment Income (Loss) and of $89.3 million in Realized Performance Revenues, partially offset by a decrease of $36.0 million in Realized Performance Compensation.
Realized Principal Investment Income (Loss) was $(10.3) million for the six months ended June 30, 2026, a decrease of $124.0 million, compared to $113.7 million for the six months ended June 30, 2025. The decrease was primarily attributable to the sale of Bistro, Blackstone’s internally developed portfolio visualization software platform, in the first quarter of 2025.
Realized Performance Revenues was $89.7 million for the six months ended June 30, 2026, a decrease of $89.3 million, compared to $179.0 million for the six months ended June 30, 2025. The decrease was primarily attributable to lower Realized Performance Revenues in our private corporate credit funds.
Realized Performance Compensation was $34.9 million for the six months ended June 30, 2026, a decrease of $36.0 million, compared to $70.9 million for the six months ended June 30, 2025. The decrease was primarily attributable to a decrease in Realized Performance Revenues.
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:
| Composite (a) | Three Months Ended June 30, 2026 / Gross | Three Months Ended June 30, 2026 / Net | Three Months Ended June 30, 2025 / Gross | Three Months Ended June 30, 2025 / Net | Six Months Ended June 30, 2026 / Gross | Six Months Ended June 30, 2026 / Net | Six Months Ended June 30, 2025 / Gross | Six Months Ended June 30, 2025 / Net | June 30, 2026Inception to Date / Gross | June 30, 2026Inception to Date / Net |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Private Credit (b) | 1% | 0% | 3% | 2% | 2% | 0% | 6% | 4% | 14% | 9% |
| Liquid Credit (b) | 2% | 2% | 2% | 2% | 1% | 1% | 3% | 3% | 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 the Flagship commingled funds across the opportunistic lending, global middle market direct lending funds (including BXSL, BCRED, and ECRED strategies), stressed/distressed strategies, and non-investment grade infrastructure and asset based credit. Separately managed accounts, funds with a limited number of limited partners that are not broadly marketed, inactive investment strategies, unlevered
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funds within a strategy that has designated levered and unlevered sleeves, and Multi-Asset Credit strategies are excluded. 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 and funds investing primarily in investment grade corporate credit or asset based finance are excluded. Blackstone Funds that were contributed to BXCI as part of Blackstone’s acquisition of GSO in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by BXCI subsequent to March 2008, are also excluded.
Operating Metrics
The following table presents information regarding our Invested Performance Eligible Assets Under Management:
| Line item | Invested Performance Eligible Assets Under Management / As of June 30, 2026 | Invested Performance Eligible Assets Under Management / As of June 30, 2025 | Estimated % Above High Water Mark/Hurdle (a) / As of June 30, 2026 | Estimated % Above High Water Mark/Hurdle (a) / As of June 30, 2025 |
| --- | --- | --- | --- | --- |
| | (Dollars in Thousands) | | | |
| Credit & Insurance (b) | $121,054,193 | $115,155,531 | 99% | 99% |
(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 June 30, 2026, 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 $2.6 billion, an increase of $213.9 million, compared to $2.4 billion at June 30, 2025. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles as of June 30, 2026, 36% were within 5% of reaching their respective High Water Mark.
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Multi-Asset Investing
The following table presents the results of operations for our Multi-Asset Investing segment:
| | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Three Months EndedJune 30, | | 2026 vs. 2025 | | Six Months EndedJune 30, | | 2026 vs. 2025 | |
| | 2026 | 2025 | $% | % | 2026 | 2025 | $% | % |
| | (Dollars in Thousands) | | | | | | | |
| Management and Advisory Fees, Net | | | | | | | | |
| Base Management Fees | $155,734 | $130,793 | $24,941 | 19% | $302,263 | $251,644 | $50,619 | 20% |
| Transaction, Advisory and Other Fees, Net | 145 | 1,002 | (857) | -86% | (1,462) | 2,465 | (3,927) | n/m |
| Total Management and Advisory Fees, Net | 155,879 | 131,795 | 24,084 | 18% | 300,801 | 254,109 | 46,692 | 18% |
| Fee Related Compensation | (42,865) | (42,877) | 12 | — | (89,892) | (84,397) | (5,495) | 7% |
| Other Operating Expenses | (29,587) | (25,469) | (4,118) | 16% | (55,351) | (49,891) | (5,460) | 11% |
| Fee Related Earnings | 83,427 | 63,449 | 19,978 | 31% | 155,558 | 119,821 | 35,737 | 30% |
| Realized Performance Revenues | 17,670 | 13,161 | 4,509 | 34% | 39,975 | 12,504 | 27,471 | 220% |
| Realized Performance Compensation | (3,915) | (5,228) | 1,313 | -25% | (19,282) | (5,746) | (13,536) | 236% |
| Realized Principal Investment Income | 509 | 965 | (456) | -47% | 1,644 | 1,447 | 197 | 14% |
| Net Realizations | 14,264 | 8,898 | 5,366 | 60% | 22,337 | 8,205 | 14,132 | 172% |
| Segment Distributable Earnings | $97,691 | $72,347 | $25,344 | 35% | $177,895 | $128,026 | $49,869 | 39% |
n/m
Not meaningful.
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Segment Distributable Earnings were $97.7 million for the three months ended June 30, 2026, an increase of $25.3 million, compared to $72.3 million for the three months ended June 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $20.0 million in Fee Related Earnings and $5.4 million in Net Realizations.
All the strategies in our Multi-Asset Investing segment exhibited positive performance in the second quarter of 2026, driven by strong performance of investments in the artificial-intelligence sector. In particular, the Absolute Return Composite had its twenty-fifth consecutive quarter of positive performance, including across our equities, quantitative, macro and credit strategies. Continued strong performance in the segment has and is contributing to favorable fundraising dynamics, including its best single month of fundraising with $4.8 billion of inflows subsequent to quarter end.
Fee Related Earnings
Fee Related Earnings were $83.4 million for the three months ended June 30, 2026, an increase of $20.0 million, compared to $63.4 million for the three months ended June 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $24.1 million in Management and Advisory Fees, Net.
Management and Advisory Fees, Net were $155.9 million for the three months ended June 30, 2026, an increase of $24.1 million, compared to $131.8 million for the three months ended June 30, 2025, primarily attributable to an increase in Base Management Fees. Base Management Fees increased $24.9 million, primarily attributable to an increase in Fee-Earning Assets Under Management in Absolute Return.
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Net Realizations
Net Realizations were $14.3 million for the three months ended June 30, 2026, an increase of $5.4 million, compared to $8.9 million for the three months ended June 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $4.5 million in Realized Performance Revenues.
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Segment Distributable Earnings were $177.9 million for the six months ended June 30, 2026, an increase of $49.9 million, compared to $128.0 million for the six months ended June 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $35.7 million in Fee Related Earnings and $14.1 million in Net Realizations.
Fee Related Earnings
Fee Related Earnings were $155.6 million for the six months ended June 30, 2026, an increase of $35.7 million, compared to $119.8 million for the six months ended June 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $46.7 million in Management and Advisory Fees, Net, partially offset by an increase of $5.5 million in Fee Related Compensation.
Management and Advisory Fees, Net were $300.8 million for the six months ended June 30, 2026, an increase of $46.7 million, compared to $254.1 million for the six months ended June 30, 2025, primarily attributable to an increase in Base Management Fees. Base Management Fees increased $50.6 million, primarily attributable to an increase in Fee-Earning Assets Under Management in Absolute Return.
Fee Related Compensation was $89.9 million for the six months ended June 30, 2026, an increase of $5.5 million, compared to $84.4 million for the six months ended June 30, 2025, primarily attributable to an increase in Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations
Net Realizations were $22.3 million for the six months ended June 30, 2026, an increase of $14.1 million, compared to $8.2 million for the six months ended June 30, 2025. The increase in Net Realizations was attributable to an increase of $27.5 million in Realized Performance Revenues, partially offset by an increase of $13.5 million in Realized Performance Compensation.
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.
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The following table presents the return information of the Absolute Return Composite:
| Composite | Three Months Ended June 30, 2026 / Gross | Three Months Ended June 30, 2026 / Net | Three Months Ended June 30, 2025 / Gross | Three Months Ended June 30, 2025 / Net | Six Months Ended June 30, 2026 / Gross | Six Months Ended June 30, 2026 / Net | Six Months Ended June 30, 2025 / Gross | Six Months Ended June 30, 2025 / Net | Average Annual Returns (a) / Periods Ended June 30, 2026 / One Year / Gross | Average Annual Returns (a) / Periods Ended June 30, 2026 / One Year / Net | Average Annual Returns (a) / Periods Ended June 30, 2026 / Three Year / Gross | Average Annual Returns (a) / Periods Ended June 30, 2026 / Three Year / Net | Average Annual Returns (a) / Periods Ended June 30, 2026 / Five Year / Gross | Average Annual Returns (a) / Periods Ended June 30, 2026 / Five Year / Net | Average Annual Returns (a) / Periods Ended June 30, 2026 / Historical / Gross | Average Annual Returns (a) / Periods Ended June 30, 2026 / Historical / Net |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Absolute Return Composite (b) | 6% | 5% | 3% | 3% | 8% | 7% | 5% | 5% | 15% | 14% | 13% | 12% | 10% | 9% | 8% | 7% |
### 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, Total Portfolio Management and Public Real Assets (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:
| Line item | Invested Performance Eligible Assets Under Management / As of June 30, 2026 | Invested Performance Eligible Assets Under Management / As of June 30, 2025 | Estimated % Above High Water Mark/Benchmark (a) / As of June 30, 2026 | Estimated % Above High Water Mark/Benchmark (a) / As of June 30, 2025 |
| --- | --- | --- | --- | --- |
| | (Dollars in Thousands) | | | |
| Multi-Asset Investing Managed Funds (b) | $64,017,666 | $52,523,386 | 100% | 97% |
(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 June 30, 2026, the incremental appreciation needed for the less than 1% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks to reach their respective High Water Marks/Benchmarks was $67.6 million, a decrease of $104.7 million, compared to $172.3 million at June 30, 2025. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks as of June 30, 2026, 48% were within 5% of reaching their respective High Water Mark.
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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.
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The following table is a reconciliation of Net Income Attributable to Blackstone Inc. to Distributable Earnings, Total Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA:
_(Dollars in Thousands)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Net Income Attributable to Blackstone Inc. | $1,229,189 | $764,244 | $1,878,918 | $1,379,096 |
| Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | 946,074 | 602,844 | 1,415,875 | 1,088,319 |
| Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 175,649 | 240,836 | 293,016 | 341,383 |
| Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 5,154 | 18,209 | 26,164 | 26,109 |
| Net Income | 2,356,066 | 1,626,133 | 3,613,973 | 2,834,907 |
| Provision for Taxes | 452,386 | 289,494 | 649,536 | 533,321 |
| Net Income Before Provision for Taxes | 2,808,452 | 1,915,627 | 4,263,509 | 3,368,228 |
| Transaction-Related and Non-Recurring Items (a) | 71 | 10,381 | 7,038 | 29,205 |
| Amortization of Intangibles (b) | 7,288 | 7,333 | 14,576 | 14,666 |
| Impact of Consolidation (c) | (180,803) | (259,045) | (319,180) | (367,492) |
| Unrealized Performance Revenues (d) | (587,150) | (313,256) | (870,505) | (576,457) |
| Unrealized Performance Allocations Compensation (e) | 236,129 | 152,618 | 325,830 | 256,177 |
| Unrealized Principal Investment Income (f) | (443,186) | (294,093) | (121,050) | (455,350) |
| Other Revenues (g) | (11,898) | 225,083 | (62,826) | 298,718 |
| Equity-Based Compensation (h) | 353,753 | 312,018 | 914,970 | 783,320 |
| Administrative Fee Adjustment (i) | 4,426 | 4,112 | 8,994 | 8,298 |
| Taxes and Related Payables (j) | (209,833) | (195,015) | (419,269) | (382,745) |
| Distributable Earnings | 1,977,249 | 1,565,763 | 3,742,087 | 2,976,568 |
| Taxes and Related Payables (j) | 209,833 | 195,015 | 419,269 | 382,745 |
| Net Interest and Dividend Loss (k) | 10,606 | 24,643 | 32,724 | 45,173 |
| Total Segment Distributable Earnings | 2,197,688 | 1,785,421 | 4,194,080 | 3,404,486 |
| Realized Performance Revenues (l) | (730,885) | (553,121) | (1,511,379) | (1,013,144) |
| Realized Performance Compensation (m) | 344,124 | 256,624 | 708,180 | 477,548 |
| Realized Principal Investment Income (n) | (27,499) | (29,421) | (59,472) | (147,331) |
| Fee Related Earnings | $1,783,428 | $1,459,503 | $3,331,409 | $2,721,559 |
| Adjusted EBITDA Reconciliation | | | | |
| Distributable Earnings | $1,977,249 | $1,565,763 | $3,742,087 | $2,976,568 |
| Interest Expense (o) | 144,830 | 125,033 | 274,888 | 242,983 |
| Taxes and Related Payables (j) | 209,833 | 195,015 | 419,269 | 382,745 |
| Depreciation and Amortization (p) | 25,772 | 26,642 | 51,910 | 48,868 |
| Adjusted EBITDA | $2,357,684 | $1,912,453 | $4,488,154 | $3,651,164 |
(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.
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(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.
_(Dollars in Thousands)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP Unrealized Performance Allocations | $587,140 | $313,283 | $870,592 | $576,484 |
| Segment Adjustment | 10 | (27) | (87) | (27) |
| Unrealized Performance Revenues | $587,150 | $313,256 | $870,505 | $576,457 |
(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.
_(Dollars in Thousands)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP Unrealized Principal Investment Income | $414,821 | $365,391 | $29,819 | $524,104 |
| Segment Adjustment | 28,365 | (71,298) | 91,231 | (68,754) |
| Unrealized Principal Investment Income | $443,186 | $294,093 | $121,050 | $455,350 |
(g)
This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents the removal of certain Transaction-Related and Non-Recurring Items.
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_(Dollars in Thousands)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP Other Revenue | $11,947 | $(225,063) | $62,920 | $(298,673) |
| Segment Adjustment | (49) | (20) | (94) | (45) |
| Other Revenues | $11,898 | $(225,083) | $62,826 | $(298,718) |
(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 for impacts of divestitures and tax contingencies. For interim periods, taxes are calculated using the preferred annualized effective tax rate approach. Related Payables represent tax-related payables including the amount payable to the holders of the tax receivable agreements based on expected tax savings generated in the respective period. See “—Key Financial Measures and Indicators — Distributable Earnings” for the full definition of Taxes and Related Payables.
_(Dollars in Thousands)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| Taxes | $179,996 | $167,162 | $358,753 | $329,697 |
| Related Payables | 29,837 | 27,853 | 60,516 | 53,048 |
| Taxes and Related Payables | $209,833 | $195,015 | $419,269 | $382,745 |
(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.
_(Dollars in Thousands)_
| Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
| --- | --- | --- | --- | --- |
| GAAP Interest and Dividend Revenue | $134,224 | $100,389 | $242,164 | $197,809 |
| Segment Adjustment | — | 1 | — | 1 |
| Interest and Dividend Revenue | 134,224 | 100,390 | 242,164 | 197,810 |
| GAAP Interest Expense | 145,023 | 135,822 | 282,076 | 253,937 |
| Segment Adjustment | (193) | (10,789) | (7,188) | (10,954) |
| Interest Expense | 144,830 | 125,033 | 274,888 | 242,983 |
| Net Interest and Dividend Loss | $(10,606) | $(24,643) | $(32,724) | $(45,173) |
(l)
This adjustment removes the total segment amount of Realized Performance Revenues.
(m)
This adjustment removes the total segment amount of Realized Performance Compensation.
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(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:
_(Dollars in Thousands)_
| Line item | June 30, 2026 | June 30, 2025 |
| --- | --- | --- |
| Investments of Consolidated Blackstone Funds | $5,233,815 | $5,101,278 |
| Equity Method Investments | | |
| Partnership Investments | 6,535,521 | 6,942,526 |
| Accrued Performance Allocations | 13,906,754 | 12,054,879 |
| Corporate Treasury Investments | 401,465 | 229,497 |
| Other Investments | 8,510,174 | 6,807,324 |
| Total GAAP Investments | $34,587,729 | $31,135,504 |
| Accrued Performance Allocations - GAAP | $13,906,754 | $12,054,879 |
| Due from Affiliates - GAAP (a) | 169,131 | 229,359 |
| Less: Net Realized Performance Revenues (b) | (591,552) | (456,507) |
| Less: Accrued Performance Compensation - GAAP (c) | (6,016,432) | (5,220,188) |
| Net Accrued Performance Revenues | $7,467,901 | $6,607,543 |
(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.
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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 $49.9 billion as of June 30, 2026, an increase of $2.2 billion from December 31, 2025. The increase in Total Assets was primarily attributable to an increase of $2.1 billion in total assets attributable to consolidated operating partnerships.
-
The increase in total assets attributable to consolidated operating partnerships was primarily attributable to an increase of $2.3 billion in Investments. The increase in Investments was primarily attributable to appreciation in our Private Equity segment.
Total Liabilities were $27.5 billion as of June 30, 2026, an increase of $1.6 billion from December 31, 2025. The increase in Total Liabilities was primarily attributable to an increase of $1.7 billion in total liabilities attributable to consolidated operating partnerships.
-
The increase in total liabilities attributable to consolidated operating partnerships was primarily attributable to increases of $752.1 million in Loans Payable and of $432.8 million in Accrued Compensation and Benefits.
○
The increase in Loans Payable was primarily attributable to a draw of our revolving credit facility (the “Revolving Credit Facility”) during the quarter ended March 31, 2026.
○
The increase in Accrued Compensation and Benefits was primarily attributable to an increase in compensation-related accruals.
### 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 and other borrowings, liquid investments we hold on our Condensed Consolidated Statement of Financial Condition and access to our $4.325 billion committed Revolving Credit Facility. As of June 30, 2026, Blackstone had $2.5 billion in Cash and Cash Equivalents, $401.5 million invested in Corporate Treasury Investments and $8.5 billion in Other Investments (which included $7.8 billion of liquid investments), against $13.2 billion in borrowings, which included our bond issuances and $800.0 million of outstanding borrowings under the Revolving Credit Facility.
In addition to the cash we receive from our notes offerings and availability under the Revolving Credit Facility and other borrowings, 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 and timing of cash received from sources in particular may vary substantially from year to year and quarter to quarter depending on the frequency and size of realization events, timing of settlement, the form in which we elect to receive payment (including in-kind) and 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.
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We expect that our primary liquidity needs will be cash to (a) provide capital to facilitate the growth of our existing businesses, which includes, without limitation, funding our general partner and co-investment commitments to our funds and warehousing investments for our funds, (b) provide capital for business expansion, (c) pay operating expenses, including cash compensation to our employees, and other obligations as they arise, including servicing debts, (d) pay income taxes and (e) pay dividends to our stockholders, make distributions to the holders of Blackstone Holdings Partnership Units and make repurchases under our share repurchase program. For a tabular presentation of Blackstone’s contractual obligations and the expected timing of such see “—Contractual Obligations.”
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Capital Commitments
Our own capital commitments to our funds, the funds we invest in and our investment strategies as of June 30, 2026 consisted of the following:
_(Dollars in Thousands)_
| Fund | Blackstone and General Partner (a) / Original Commitment | Blackstone and General Partner (a) / Remaining Commitment | Senior Managing Directorsand Certain Other Professionals (b) / Original Commitment | Senior Managing Directorsand Certain Other Professionals (b) / Remaining Commitment |
| --- | --- | --- | --- | --- |
| Real Estate | | | | |
| BREP VII | $300,000 | $18,989 | $100,000 | $6,330 |
| BREP VIII | 300,000 | 22,744 | 100,000 | 7,581 |
| BREP IX | 300,000 | 39,056 | 100,000 | 13,019 |
| BREP X | 300,000 | 158,750 | 100,000 | 52,917 |
| BREP Europe III | 100,000 | 2,493 | 35,000 | 831 |
| BREP Europe IV | 130,000 | 10,641 | 43,333 | 3,547 |
| BREP Europe V | 150,000 | 12,476 | 43,333 | 3,604 |
| BREP Europe VI | 130,000 | 38,004 | 43,333 | 12,668 |
| BREP Europe VII | 130,000 | 75,128 | 43,333 | 25,043 |
| BREP Asia I | 50,000 | 7,151 | 16,667 | 2,384 |
| BREP Asia II | 70,707 | 11,579 | 23,569 | 3,860 |
| BREP Asia III | 81,078 | 41,994 | 27,026 | 13,998 |
| BREDS III | 50,000 | 11,358 | 16,667 | 3,786 |
| BREDS IV | 50,000 | 10,613 | 49,113 | 10,425 |
| BREDS V | 50,000 | 37,965 | 48,070 | 36,499 |
| BPP | 250,934 | 24,473 | — | — |
| Other (c) | 63,220 | 38,868 | — | — |
| Total Real Estate | 2,505,939 | 562,282 | 789,444 | 196,492 |
| Private Equity | | | | |
| BCP V | 593,356 | 29,573 | — | — |
| BCP VI | 719,718 | 81,400 | 250,000 | 28,275 |
| BCP VII | 500,000 | 25,739 | 225,000 | 11,582 |
| BCP VIII | 500,000 | 91,308 | 225,000 | 41,089 |
| BCP IX | 500,000 | 415,389 | 225,000 | 186,925 |
| BEP I | 50,000 | 4,728 | — | — |
| BEP II | 80,000 | 10,498 | 26,667 | 3,499 |
| BEP III | 80,000 | 32,162 | 26,667 | 10,721 |
| BETP IV | 80,000 | 36,224 | 26,667 | 12,075 |
| BETP V | 111,814 | 111,814 | 37,271 | 37,271 |
| BCP Asia I | 40,000 | 5,869 | 13,333 | 1,956 |
| BCP Asia II | 100,000 | 47,306 | 33,333 | 15,769 |
| BCP Asia III | 200,000 | 200,000 | 66,667 | 66,667 |
continued...
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Capital Commitments continued
_(Dollars in Thousands)_
| Fund | Blackstone and General Partner (a) / Original Commitment | Blackstone and General Partner (a) / Remaining Commitment | Senior Managing Directorsand Certain Other Professionals (b) / Original Commitment | Senior Managing Directorsand Certain Other Professionals (b) / Remaining Commitment |
| --- | --- | --- | --- | --- |
| Private Equity (continued) | | | | |
| Core Private Equity I | $117,747 | $27,016 | $18,992 | $4,358 |
| Core Private Equity II | 160,000 | 118,070 | 32,640 | 24,086 |
| Tactical Opportunities | 558,492 | 222,313 | 186,164 | 74,104 |
| Strategic Partners (Secondaries) | 1,910,861 | 935,245 | 1,541,281 | 831,632 |
| BIP | 568,934 | 141,405 | — | — |
| Life Sciences | 239,856 | 157,547 | 37,353 | 18,674 |
| Growth | 170,221 | 93,191 | 56,405 | 31,041 |
| Other (c) | 90,209 | 21,057 | — | — |
| Total Private Equity | 7,371,208 | 2,807,854 | 3,028,440 | 1,399,724 |
| Credit & Insurance | | | | |
| Mezzanine / Opportunistic II | 120,000 | 29,059 | 110,101 | 26,661 |
| Mezzanine / Opportunistic III | 130,783 | 33,617 | 98,118 | 25,221 |
| Mezzanine / Opportunistic IV | 122,000 | 50,984 | 116,146 | 48,537 |
| Mezzanine / Opportunistic V | 130,000 | 121,420 | 122,140 | 114,079 |
| Stressed / Distressed II | 125,000 | 51,612 | 119,878 | 49,497 |
| Stressed / Distressed III | 151,000 | 20,422 | 146,432 | 19,804 |
| European Senior Debt I | 63,000 | 2,873 | 56,882 | 2,594 |
| European Senior Debt II | 92,982 | 32,426 | 90,915 | 31,751 |
| European Senior Debt III | 23,870 | 10,326 | 19,807 | 8,568 |
| Energy I | 80,000 | 36,700 | 75,445 | 34,611 |
| Energy II | 150,000 | 102,832 | 149,011 | 102,154 |
| Energy III | 127,000 | 110,741 | 120,493 | 105,067 |
| Energy SMAs | 52,829 | 25,370 | 4,944 | 3,281 |
| Credit Alpha Fund | 52,102 | 19,752 | 50,670 | 19,209 |
| Credit Alpha Fund II | 25,500 | 12,550 | 24,360 | 11,988 |
| Direct Lending SMAs | 103,485 | 63,391 | 53,849 | 33,403 |
| European Senior Direct Lending Fund | 32,106 | 25,544 | 21,241 | 16,899 |
| Blackstone Asset Based Finance Partners LP | 57,068 | 57,068 | 29,077 | 29,077 |
| Other (c) | 126,067 | 82,936 | 1,728 | 709 |
| Total Credit & Insurance | 1,764,792 | 889,623 | 1,411,237 | 683,110 |
continued...
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Capital Commitments continued
_(Dollars in Thousands)_
| Fund | Blackstone and General Partner (a) / Original Commitment | Blackstone and General Partner (a) / Remaining Commitment | Senior Managing Directorsand Certain Other Professionals (b) / Original Commitment | Senior Managing Directorsand Certain Other Professionals (b) / Remaining Commitment |
| --- | --- | --- | --- | --- |
| Multi-Asset Investing | | | | |
| Strategic Alliance III | $22,000 | $24,263 | — | — |
| Strategic Alliance IV | 15,000 | 9,287 | — | — |
| Dislocation | 20,000 | 12,156 | — | — |
| Other (c) | 4,746 | 1,847 | — | — |
| Total Multi-Asset Investing | 61,746 | 47,553 | — | — |
| Other | | | | |
| Treasury (d) | 1,889,212 | 1,597,241 | — | — |
| | $13,592,897 | $5,904,553 | $5,229,121 | $2,279,326 |
(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. Remaining commitment may exceed original commitment due to recallable capital.
(b)
Includes the full portion of our commitments (1) required to be funded by senior managing directors and certain other professionals and (2) 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 in each respective segment to a number of other funds.
(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.”
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Borrowings
As of June 30, 2026, Blackstone Holdings Finance Co. L.L.C. and Blackstone Reg Finance Co. L.L.C. (each an “Issuer” and together the “Issuers”), both indirect subsidiaries of Blackstone, had issued and outstanding the following senior notes (collectively the “Notes”):
| Senior Notes (a) | Aggregate Principal Amount(Dollars/Eurosin Thousands) |
| --- | --- |
| 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 |
| 4.300%, Due 11/3/2030 (b) | $600,000 |
| 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 |
| 5.000%, Due 12/6/2034 (b) | $750,000 |
| 4.950%, Due 2/15/2036 (b) | $600,000 |
| 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 |
| | $12,391,740 |
(a)
The Notes are unsecured and unsubordinated obligations of the Issuers, as applicable, and are fully and unconditionally guaranteed, jointly and severally, by Blackstone Inc. and each of the Blackstone Holdings Partnerships (the “Guarantors”). The Notes contain customary covenants and financial restrictions that, among other things, limit the Issuers 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.
(b)
The Registered 2030, 2034 and 2036 Notes’ Guarantors and Issuer, Blackstone Reg Finance Co. L.L.C. (collectively, the “Obligor Group”) do not have material assets, liabilities and results of operations, with the exception of certain amounts already disclosed in our condensed consolidated financial statements (specifically, goodwill, the majority of our deferred tax assets, the Tax Receivable Agreement liability and the
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Registered 2030, 2034 and 2036 Notes). Therefore, we have excluded the summarized financial information for the Obligor Group due to management’s belief that such summarized financial information would be repetitive and would not provide material information to investors. For additional information see Note 11. “Borrowings” in the “Notes to Condensed Consolidated Financial Statements” in “— Item 1. Financial Statements” of this filing.
Blackstone, through Blackstone Holdings Finance Co. L.L.C., has a $4.325 billion unsecured Revolving Credit Facility with Citibank, N.A., as administrative agent with a maturity date of October 16, 2030. As of June 30, 2026, Blackstone had $800.0 million of outstanding borrowings under the Revolving Credit Facility. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under management, each tested quarterly.
For a tabular presentation of the payment timing of principal and interest due on Blackstone’s issued notes and the Revolving Credit Facility see “—Contractual Obligations.”
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Contractual Obligations
The following table sets forth information relating to our contractual obligations as of June 30, 2026 on a consolidated basis and on a basis deconsolidating the Blackstone Funds:
| | | | | | |
| --- | --- | --- | --- | --- | --- |
| Contractual Obligations | July 1, 2026 toDecember 31, 2026 | 2027-2028 | 2029-2030 | Thereafter | Total |
| | (Dollars in Thousands) | | | | |
| Operating Lease Obligations (a) | $116,542 | $415,225 | $288,011 | $760,436 | $1,580,214 |
| Purchase Obligations | 93,106 | 163,684 | 7,260 | 44 | 264,094 |
| Blackstone Operating Borrowings (b) | 685,320 | 1,550,000 | 2,585,320 | 8,371,100 | 13,191,740 |
| Interest on Blackstone Operating Borrowings (c) | 275,050 | 1,019,016 | 929,086 | 3,221,059 | 5,444,211 |
| Borrowings of Consolidated Blackstone Funds | — | — | 126,896 | — | 126,896 |
| Interest on Borrowings of Consolidated Blackstone Funds | 4,400 | 16,421 | 2,021 | — | 22,842 |
| Blackstone Funds Capital Commitments to Investee Funds (d) | 891,114 | — | — | — | 891,114 |
| Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable Agreements (e) | — | 243,837 | 413,287 | 1,409,979 | 2,067,103 |
| Unrecognized Tax Benefits, Including Interest and Penalties (f) | — | — | — | — | — |
| Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other (g) | 5,904,553 | — | — | — | 5,904,553 |
| Consolidated Contractual Obligations | 7,970,085 | 3,408,183 | 4,351,881 | 13,762,618 | 29,492,767 |
| Borrowings of Consolidated Blackstone Funds | — | — | (126,896) | — | (126,896) |
| Interest on Borrowings of Consolidated Blackstone Funds | (4,400) | (16,421) | (2,021) | — | (22,842) |
| Blackstone Funds Capital Commitments to Investee Funds (d) | (891,114) | — | — | — | (891,114) |
| Blackstone Operating Entities Contractual Obligations | $7,074,571 | $3,391,762 | $4,222,964 | $13,762,618 | $28,451,915 |
(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. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. As of June 30, 2026, we had $800.0 million of outstanding borrowings under our Revolving Credit Facility, which are presented as due in 2030, the contractual maturity date of the Revolving Credit Facility.
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(c)
Represents interest to be paid over the maturity of our senior notes. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. These amounts include commitment fees for unutilized borrowings under the Revolving Credit Facility.
(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 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 expected to be 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 15. “Related Party Transactions” (see “—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 $340.0 million and interest of $137.1 million as of June 30, 2026; 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 16. “Commitments and Contingencies — Contingencies — Guarantees” in the “Notes to Condensed Consolidated Financial Statements” in “—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 June 30, 2026.
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 16. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
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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. 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 of shares 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 six months ended June 30, 2026, Blackstone repurchased 0.2 million and 0.4 million shares of common stock, pursuant to its repurchase program, at a total cost of $24.0 million and $48.4 million, respectively. As of June 30, 2026, the amount remaining available for repurchases under the program was $1.6 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.
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.
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The following graph shows fiscal quarterly and annual per common stockholder dividends for 2026 and 2025. Dividends are declared and paid in the quarter subsequent to the quarter in which they are earned.
With respect to the second quarter of fiscal year 2026, we paid to stockholders of our common stock a dividend of $1.29 per share, aggregating to $2.45 per share of common stock in respect of the two fiscal quarters ended June 30, 2026. With respect to fiscal year 2025, we paid stockholders aggregate dividends of $4.74 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 notes 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.
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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:
_(Dollars in Millions)_
| Line item | Repurchase Agreements |
| --- | --- |
| Balance, June 30, 2026 | $338.5 |
| Balance, December 31, 2025 | $289.2 |
| Six Months Ended June 30, 2026 | |
| Average Daily Balance | $394.8 |
| Maximum Daily Balance | $605.9 |
### 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 “—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 8. “Variable Interest Entities” in the “Notes to Condensed Consolidated Financial Statements” in “—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.
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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.
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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 “—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, 2025. 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. The range of management fee rates and the calculation base from which they are earned, generally, are as follows:
For vehicles within the Real Estate segment:
-
0.35% to 1.50% of committed capital or invested capital during the investment period, invested capital subsequent to the investment period, or gross asset value for certain drawdown vehicles and co-investment vehicles,
-
0.40% to 1.25% of net asset value for certain separately managed accounts, perpetual capital vehicles, drawdown vehicles, and co-investment vehicles, and
-
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.
For vehicles within the Private Equity segment:
-
0.50% to 1.75% of committed capital during the investment period or invested capital or gross investment value subsequent to the investment period for drawdown vehicles and certain co-investment vehicles,
-
0.50% to 1.75% of invested capital for certain separately managed accounts and co-investment vehicles, and
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0.75% to 1.25% of net asset value for perpetual capital vehicles.
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For vehicles within the Credit & Insurance segment:
-
0.20% to 1.25% of net asset value or fair value of investments for certain separately managed accounts and open-ended vehicles,
-
0.35% to 1.25% of net asset value or gross asset value of our BDCs and certain registered investment companies,
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0.30% to 0.50% of the aggregate par amount of collateral assets, including principal cash, for CLO vehicles, and
-
0.20% to 1.50% of invested capital for drawdown vehicles and certain separately managed accounts.
For vehicles within the Multi-Asset Investing segment:
-
0.20% to 1.50% of net asset value for all vehicles.
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, gross asset value, 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 “—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.
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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 in accordance with the GAAP guidance on investment companies, and under the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies, and reflect their investments, including majority-owned and controlled investments, at fair value. 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 the 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.
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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 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, head of finance, chief compliance officer (or their respective equivalents where applicable) and other senior managing directors in the business or support functions. 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 12. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Our provision for income taxes is comprised 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 any 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.
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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 “—Item 1. Financial Statements” of this filing.
## Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our predominant exposure to market risk is related to our role as general partner or investment adviser to the Blackstone Funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees, performance revenues and investment income. There were no material changes in our market risks as of June 30, 2026 as compared to December 31, 2025. For additional information, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
## Item 4. Controls and Procedures
### Evaluation of Disclosure Controls and Procedures
We maintain “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are effective at the reasonable assurance level to accomplish their objectives of ensuring that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
### Changes in Internal Control over Financial Reporting
No change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during our most recent quarter, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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Part II. Other Information
## Item 1. Legal Proceedings
We may from time to time be involved in litigation and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us. See “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. We are not currently subject to any pending legal (including judicial, regulatory, administrative or arbitration) proceedings that we expect to have a material impact on our condensed consolidated financial statements. However, given the inherent unpredictability of these types of proceedings and the potentially large and/or indeterminate amounts that could be sought, an adverse outcome in certain matters could have a material effect on Blackstone’s financial results in any particular period. See “Part I. Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 16. Commitments and Contingencies — Contingencies — Litigation.”
## Item 1A. Risk Factors
For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in our subsequently filed reports, all of which are accessible on the United States Securities and Exchange Commission’s website at www.sec.gov.
See “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business Environment” in this report for a discussion of the conditions in the financial markets and economic conditions affecting our businesses. This discussion updates, and should be read together with, the risk factor entitled “Difficult market and geopolitical conditions can adversely affect our business in many ways, each of which could materially reduce our revenue, earnings and cash flow and adversely affect our financial prospects and condition.” in our Annual Report on Form 10-K for the year ended December 31, 2025.
The risks described in our Annual Report on Form 10-K and in our subsequently filed periodic reports are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
## Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table sets forth information regarding repurchases of shares of our common stock during the three months ended June 30, 2026:
| Period | Total Numberof Shares Purchased | Average Price Paidper Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (a) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(Dollars in Thousands) (a) |
| --- | --- | --- | --- | --- |
| Apr. 1 - Apr. 30, 2026 | 5,128 | $123.96 | 5,128 | $1,664,642 |
| May 1 - May 31, 2026 | 102,560 | $120.27 | 102,560 | $1,652,306 |
| Jun. 1 - Jun. 30, 2026 | 92,312 | $119.69 | 92,312 | $1,641,258 |
| | 200,000 | | 200,000 | |
(a)
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. 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 of shares repurchased will depend on a variety of factors, including legal requirements,
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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. See “Part I. Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 13. Earnings Per Share and Stockholders’ Equity — Share Repurchase Program” and “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Share Repurchase Program” for further information regarding this repurchase program.
As permitted by our policies and procedures governing transactions in our securities by our directors, executive officers and other employees, from time to time some of these persons may establish plans or arrangements complying with Rule 10b5-1 under the Exchange Act, and similar plans and arrangements relating to our common stock and Blackstone Holdings Partnership Units.
## Item 3. Defaults Upon Senior Securities
Not applicable.
## Item 4. Mine Safety Disclosures
Not applicable.
## Item 5. Other Information
### Election of Directors
On August 6, 2026, Blackstone Group Management L.L.C., by a written consent as the sole holder of our Series II preferred stock, elected Stephen A. Schwarzman, Jonathan D. Gray, Joseph P. Baratta, William G. Parrett, James W. Breyer, Reginald J. Brown, Rochelle B. Lazarus, and Ruth Porat as directors of Blackstone Inc. Each director was serving as a director of Blackstone Inc. at the time of election.
### Annual Meeting of Stockholders
We will hold our 2026 annual meeting of stockholders (the “Annual Meeting”) at 9:00 a.m., Eastern Time, on September 22, 2026. The Annual Meeting will be held in a virtual meeting format only. Stockholders of record at the close of business on August 21, 2026 (the “Record Date”) can attend the meeting at https://event.webcasts.com/starthere.jsp?ei=1767610&tp_key=a173f6d75a. In order to access the Annual Meeting, please be prepared to confirm your ownership of common stock as of the Record Date. Please note that there will not be any matter for stockholders to vote on at the Annual Meeting, and, as such, no action is expected to be taken at the Annual Meeting. Please note that we are not planning on providing any update on our business during the Annual Meeting.
146
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#####
## Item 6. Exhibits
| Exhibit Number | Exhibit Description |
| --- | --- |
| 10.1*+ | Seventh Amended and Restated Exchange Agreement, dated as of July 2, 2026, among Blackstone Inc., Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and the Blackstone Holdings Limited Partners from time to time party thereto. |
| 10.2*+ | Amended and Restated Exempted Limited Partnership Agreement of BMA Asia III GP L.P. dated as of August 7, 2026 and deemed effective as of February 3, 2025. |
| 10.3*+ | Amended and Restated Exempted Limited Partnership Agreement of BXLS Yield GP L.P. dated as of August 7, 2026 and deemed effective as of September 20, 2021. |
| 31.1* | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a). |
| 31.2* | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a). |
| 32.1** | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2** | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS* | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH* | Inline XBRL Taxonomy Extension Schema with Embedded Linkbases. |
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
\*
Filed herewith.
\*\*
Furnished herewith.
+
Management contract or compensatory plan or arrangement in which directors or executive officers are eligible to participate.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
147
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#####
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: August 7, 2026
Blackstone Inc.
/s/ Michael S. Chae
Name: Michael S. Chae
Title: Chief Financial Officer
(Principal Financial Officer and Authorized Signatory)
148
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## EX-10.1
SEC source: [d158269dex101.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex101.htm)
***Exhibit 10.1***
**SEVENTH AMENDED AND RESTATED EXCHANGE AGREEMENT**
SEVENTH AMENDED AND RESTATED EXCHANGE AGREEMENT (the “Agreement”), dated as of July 2, 2026 among Blackstone Inc.,
Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and the Blackstone Holdings Limited Partners from time to time party hereto.
WHEREAS, Blackstone Inc., Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P.,
Blackstone Holdings IV L.P. and the Blackstone Holdings Limited Partners heretofore executed and delivered the Sixth Amended and Restated Exchange Agreement, dated as of February 7, 2022 (the “Sixth Amended and Restated Exchange
Agreement”);
WHEREAS, the parties hereto desire to provide for the exchange of certain Blackstone Holdings Partnership Units
for shares of Common Stock, on the terms and subject to the conditions set forth herein;
WHEREAS, the right to exchange Blackstone
Holdings Partnership Units set forth in Section 2.1(a) below, once exercised, represents a several, and not a joint and several, obligation of the Blackstone Holdings Partnerships (on a *pro rata* basis), and no Blackstone Holdings
Partnership shall have any obligation or right to acquire Blackstone Holdings Partnership Units issued by another Blackstone Holdings Partnership;
WHEREAS, the parties to the Sixth Amended and Restated Exchange Agreement now desire to enter into this Agreement to amend and restate the
Sixth Amended and Restated Exchange Agreement in its entirety as more fully set forth below.
NOW, THEREFORE, in consideration of the
mutual covenants and undertakings contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1. Definitions. The following definitions shall be for all purposes, unless otherwise clearly indicated to the contrary,
applied to the terms used in this Agreement.
“Agreement” has the meaning set forth in the preamble of this Agreement.
“Blackstone Holdings AI” means Blackstone Holdings AI L.P., a limited partnership formed under the laws of the State
of Delaware, and any successor thereto.
“Blackstone Holdings I” means Blackstone Holdings I L.P., a limited
partnership formed under the laws of the State of Delaware, and any successor thereto.
---
“Blackstone Holdings II” means Blackstone Holdings II L.P., a limited
partnership formed under the laws of the State of Delaware, and any successor thereto.
“Blackstone Holdings I/II General
Partner” means Blackstone Holdings I/II GP L.L.C., a limited liability company formed under the laws of the State of Delaware and the general partner of Blackstone Holdings AI, Blackstone Holdings I, Blackstone Holdings II, and any
successor general partner thereof.
“Blackstone Holdings III” means Blackstone Holdings III L.P., a
société en commandite formed under the laws of the Province of Québec, and any successor thereto.
“Blackstone Holdings III General Partner” means Blackstone Holdings III GP L.P., a limited partnership formed under the
laws of the State of Delaware, and the general partner of Blackstone Holdings III, and any successor general partner thereof.
“Blackstone Holdings III GP Sub” means Blackstone Holdings III GP Sub L.L.C., a limited liability company formed under the
laws of the State of Delaware, and any successor thereto.
“Blackstone Holdings IV” means Blackstone Holdings IV L.P.,
a société en commandite formed under the laws of the Province of Québec, and any successor thereto.
“Blackstone Holdings IV General Partner” means Blackstone Holdings IV GP L.P., a société en commandite formed
under the laws of the Province of Québec and the general partner of Blackstone Holdings IV, and any successor general partner thereof.
“Blackstone Holdings IV Holdco” means Blackstone PB IV L.P., a société en commandite formed under the laws of
the Province of Québec, and any successor thereto.
“Blackstone Holdings General Partners” means, collectively,
Blackstone Holdings I/II General Partner, Blackstone Holdings III General Partner and Blackstone Holdings IV General Partner.
“Blackstone Holdings Limited Partner” means each Person that is as of the date of this Agreement or becomes from time to
time a limited partner of each of the Blackstone Holdings Partnerships pursuant to the terms of the Blackstone Holdings Partnership Agreements.
“Blackstone Holdings Partnership Agreements” means, collectively, the Fourth Amended and Restated Limited Partnership
Agreement of Blackstone Holdings I, the Fourth Amended and Restated Limited Partnership Agreement of Blackstone Holdings AI, the Fourth Amended and Restated Limited Partnership Agreement of Blackstone Holdings II, the Fifth Amended and Restated
Limited Partnership Agreement of Blackstone Holdings III and the Fifth Amended and Restated Limited Partnership Agreement of Blackstone Holdings IV, as they may each be amended, supplemented or restated from time to time.
“Blackstone Holdings Partnership Unit” means, collectively, one unit of partnership interest in each of Blackstone Holdings
AI, Blackstone Holdings I, Blackstone Holdings II, Blackstone Holdings III and Blackstone Holdings IV, issued pursuant to their respective Blackstone Holdings Partnership Agreements.
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“Blackstone Holdings Partnerships” means, collectively, Blackstone
Holdings AI, Blackstone Holdings I, Blackstone Holdings II, Blackstone Holdings III and Blackstone Holdings IV.
“Blackstone PB
I” means Blackstone PB I L.L.C., a limited liability company formed under the laws of the State of Delaware, and any successor thereto.
“Blackstone PB II” means Blackstone PB II L.L.C., a limited liability company formed under the laws of the State of
Delaware, and any successor thereto.
“Business Day” means each day that is not a Saturday, Sunday or other day on
which banking institutions in New York, New York are authorized or required by law to close.
“Common Stock” means
shares of common stock, par value $0.00001 per share, of the Issuer.
“Code” means the Internal Revenue Code of 1986,
as amended.
“Exchange” has the meaning set forth in Section 2.1(a) of this Agreement.
“Exchange Rate” means the number of shares of Common Stock for which a Blackstone Holdings Partnership Unit is entitled to
be exchanged. On the date of this Agreement, the Exchange Rate shall be 1 for 1, which Exchange Rate shall be subject to modification as provided in Section 2.4 of this Agreement.
“Issuer” means Blackstone Inc., a corporation formed under the laws of the State of Delaware, and any successor thereto.
“Insider Trading Policy” means the Insider Trading Policy of the Issuer applicable to the directors and executive
officers of the Issuer, as such insider trading policy may be amended from time to time.
“Issuer Certificate of
Incorporation” means the Certificate of Incorporation of the Issuer, dated August 6, 2021, as it may be amended, supplemented or restated from time to time.
“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, estate,
unincorporated organization, association (including any group, organization, co-tenancy, plan, board, council or committee), government (including a country, state, county, or any other governmental or
political subdivision, agency or instrumentality thereof) or other entity (or series thereof).
“Quarter” means, unless
the context requires otherwise, a fiscal quarter of the Issuer.
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“Quarterly Exchange Date” means, unless the Issuer cancels such Quarterly
Exchange Date pursuant to Section 2.8 hereof, the date that is the later to occur of either: (1) the second Business Day after the date on which the Issuer makes a public news release of its quarterly earnings for the prior Quarter,
(2) the first day each Quarter that directors and executive officers of the Issuer are permitted to trade under the Insider Trading Policy, or (3) such other date as the Issuer shall determine in its sole discretion, *provided* with
respect to clause (3) that the Issuer shall provide the Blackstone Holdings Limited Partners with reasonable notice of such date.
“Sale Transaction” has the meaning set forth in Section 2.8 of this Agreement.
“Transfer Agent” means such bank, trust company or other Person as shall be appointed from time to time by the Issuer
pursuant to the Issuer Certificate of Incorporation to act as registrar and transfer agent for the Common Stock.
ARTICLE II
EXCHANGE OF BLACKSTONE HOLDINGS PARTNERSHIP UNITS
SECTION 2.1. Exchange of Blackstone Holdings Partnership Units.
(a) Subject to adjustment as provided in this Article II, to the provisions of the Blackstone Holdings Partnership Agreements and the Issuer
Certificate of Incorporation and to the provisions of Section 2.2 hereof, each Blackstone Holdings Limited Partner shall be entitled on any Quarterly Exchange Date to surrender Blackstone Holdings Partnership Units held by such Blackstone
Holdings Limited Partner to the Blackstone Holdings Partnerships in exchange for the delivery by the Blackstone Holdings Partnerships of a number of shares of Common Stock equal to the product of such number of Blackstone Holdings Partnership Units
surrendered multiplied by the Exchange Rate (such exchange, an “Exchange”); provided that any such exchange is for a minimum of the lesser of 1,000 Blackstone Holdings Partnership Units or all of the vested Blackstone
Holdings Partnership Units held by such Blackstone Holdings Limited Partner.
(b) On the date Blackstone Holdings Partnership Units are
surrendered for exchange, all rights of the exchanging Blackstone Holdings Limited Partner as holder of such Blackstone Holdings Partnership Units shall cease, and such exchanging Blackstone Holdings Limited Partner shall be treated for all purposes
as having become the Record Holder (as defined in the Issuer Certificate of Incorporation) of such shares of Common Stock.
(c) For the
avoidance of doubt, any exchange of Blackstone Holdings Partnership Units shall be subject to the provisions of the Blackstone Holdings Partnership Agreements, including without limitation the provisions of Sections 8.01, 8.03 and 8.04.
SECTION 2.2. Exchange Procedures. (a) A Blackstone Holdings Limited Partner may exercise the right to exchange Blackstone Holdings
Partnership Units set forth in Section 2.1(a) above by providing a written notice of exchange at least sixty (60) days prior to the applicable Quarterly Exchange Date to each of the Blackstone Holdings General Partners substantially in the
form of Exhibit A hereto, duly executed by such holder or such holder’s duly authorized attorney in respect of the Blackstone Holdings Partnership Units to be exchanged, in each case delivered during normal business hours at the
principal executive offices of the Issuer or the Blackstone Holdings General Partners, as applicable.
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(b) As promptly as practicable following the surrender for exchange of Blackstone Holdings
Partnership Units in the manner provided in this Article II, the Blackstone Holdings Partnerships shall deliver or cause to be delivered at the principal executive offices of the Issuer or at the office of the Transfer Agent the number of shares of
Common Stock issuable upon such exchange, issued in the name of such exchanging Blackstone Holdings Limited Partner.
(c) The Blackstone
Holdings Partnerships may adopt reasonable procedures for the implementation of the exchange provisions set forth in this Article II, including, without limitation, procedures for the giving of notice of an election for exchange.
SECTION 2.3. Blackout Periods and Ownership Restrictions.
(a) Notwithstanding anything to the contrary, a Blackstone Holdings Limited Partner shall not be entitled to exchange Blackstone Holdings
Partnership Units, and the Issuer and the Blackstone Holdings Partnerships shall have the right to refuse to honor any request for exchange of Blackstone Holdings Partnership Units, (i) at any time or during any period if the Issuer or the
Blackstone Holdings Partnerships shall determine, based on the advice of counsel (which may be inside counsel), that there may be material non-public information that may affect the trading price per share of
Common Stock at such time or during such period or (ii) if such exchange would be prohibited under applicable law or regulation.
SECTION 2.4. Splits, Distributions and Reclassifications.
(a) The Exchange Rate shall be adjusted accordingly if there is: (1) any subdivision (by split, distribution, reclassification,
recapitalization or otherwise) or combination (by reverse split, reclassification, recapitalization or otherwise) of the Blackstone Holdings Partnership Units that is not accompanied by an identical subdivision or combination of the shares of Common
Stock; or (2) any subdivision (by split, distribution, reclassification, recapitalization or otherwise) or combination (by reverse split, reclassification, recapitalization or otherwise) of the shares of Common Stock that is not accompanied by
an identical subdivision or combination of the Blackstone Holdings Partnership Units. In the event of a reclassification or other similar transaction as a result of which the shares of Common Stock are converted into another security, then a
Blackstone Holdings Limited Partner shall be entitled to receive upon exchange the amount of such security that such Blackstone Holdings Limited Partner would have received if such exchange had occurred immediately prior to the effective date of
such reclassification or other similar transaction. Except as may be required in the immediately preceding sentence, no adjustments in respect of distributions shall be made upon the exchange of any Blackstone Holdings Partnership Unit.
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SECTION 2.5. Shares of Common Stock to be Issued.
(a) The Issuer covenants that if any shares of Common Stock require registration with or approval of any governmental authority under any U.S.
federal or state law before such shares of Common Stock may be issued upon exchange pursuant to this Article II, the Issuer shall use commercially reasonable efforts to cause such shares of Common Stock to be duly registered or approved, as the case
may be. The Issuer shall use commercially reasonable efforts to list the shares of Common Stock required to be delivered upon exchange prior to such delivery upon each national securities exchange or inter-dealer quotation system upon which the
outstanding shares of Common Stock may be listed or traded at the time of such delivery. Nothing contained herein shall be construed to preclude the Issuer or the Blackstone Holdings Partnership from satisfying their obligations in respect of the
exchange of the Blackstone Holdings Partnership Units by delivery of shares of Common Stock which are held in the treasury of the Issuer or the Blackstone Holdings Partnership or any of their subsidiaries.
SECTION 2.6. Taxes.
(a)
The delivery of shares of Common Stock upon exchange of Blackstone Holdings Partnership Units shall be made without charge to the Blackstone Holdings Limited Partners for any stamp or other similar tax in respect of such issuance.
SECTION 2.7. Restrictions.
(a) The provisions of Sections 8.02, 8.03 (other than paragraphs (a), (b) and (d)), 8.04 and 8.06 of the Blackstone Holdings Partnership
Agreements shall apply, mutatis mutandis, to any shares of Common Stock issued upon exchange of Blackstone Holdings Partnership Units; and the provisions of paragraphs (b) and (d) of Section 8.03 of the Blackstone Holdings
Partnership Agreements shall permit Transfers of Common Stock issued upon exchange of Blackstone Holdings Partnership Units to the same extent as Exchange Transactions (as defined in the Blackstone Holdings Partnership Agreements) with respect to
Blackstone Holdings Partnership Units may be permitted under such provisions. In each case, the provisions of Sections 8.03 and 8.04 of the Blackstone Holdings Partnership Agreements shall apply in the aggregate to Blackstone Holdings Partnership
Units and shares of Common Stock received in exchange for Blackstone Holdings Partnership Units.
SECTION 2.8. Subsequent
Offerings.
(a) The Issuer may from time to time provide the opportunity for Blackstone Holdings Limited Partners to sell their
Blackstone Holdings Partnership Units to the Issuer, the Blackstone Holdings Partnerships or any of their subsidiaries (a “Sale Transaction”); provided that no Sale Transaction shall occur unless the Issuer cancels the nearest
Quarterly Exchange Date scheduled to occur in the same fiscal year of the Issuer as such Sale Transaction. A Blackstone Limited Partner selling Blackstone Holdings Partnership Units in connection with a Sale Transaction must provide notice to Issuer
at least thirty (30) days prior to the cash settlement of such Sale Transaction in respect of the Blackstone Holdings Partnership Units to be sold, in each case delivered during normal business hours at the principal executive offices of the
Issuer. For the avoidance of doubt, the total aggregate number of Quarterly Exchange Dates and Sale Transactions occurring during any fiscal year of the Issuer shall not exceed four (4).
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ARTICLE III
GENERAL PROVISIONS
SECTION 3.1. Amendment. (a) The provisions of this Agreement may be amended by the affirmative vote or written consent of each of
the Blackstone Holdings Partnerships and, after a Change of Control (as such term as defined in the Blackstone Holdings Partnership Agreements), the holders of at least a majority of the Vested Percentage Interests (as such term as defined in the
Blackstone Holdings Partnership Agreements) of the Blackstone Holdings Partnership Units (excluding Blackstone Holdings Partnership Units held by the Issuer and the Blackstone Holdings General Partners). No amendment to this Agreement shall be
required to the extent any entity becomes a successor of any of the foregoing parties.
(b) Each Blackstone Holdings Limited Partner
hereby expressly consents and agrees that, whenever in this Agreement it is specified that an action may be taken upon the affirmative vote or written consent of less than all of the Blackstone Holdings Limited Partners, such action may be so taken
upon the concurrence of less than all of the Blackstone Holdings Limited Partners and each Blackstone Holdings Limited Partner shall be bound by the results of such action.
SECTION 3.2. Addresses and Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and
shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by electronic mail (delivery receipt requested) or by registered or certified mail (postage prepaid, return receipt requested) to
the respective parties at the following addresses (or at such other address for a party as shall be as specified in a notice given in accordance with this Section 3.2):
(a)
If to the Issuer, to:
345 Park Avenue
New York, New York 10154
Attention: Chief Legal Officer
Electronic Mail:
(b)
If to Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. or Blackstone Holdings IV L.P., to:
345 Park Avenue
New York, New York 10154
Attention: Chief Legal Officer
Electronic Mail:
(c)
If to any Blackstone Holdings Limited Partner, to:
c/o Blackstone Inc.
345 Park
Avenue
New York, New York 10154
Attention: Chief Legal Officer
Electronic Mail:
7
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SECTION 3.3. Further Action. The parties shall execute and deliver all documents,
provide all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement.
SECTION 3.4. Binding Effect. This Agreement shall be binding upon and inure to the benefit of all of the parties and, to the
extent permitted by this Agreement, their successors, executors, administrators, heirs, legal representatives and assigns.
SECTION 3.5. Severability. If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain
in full force and effect so long as the economic or legal substance of the transactions is not affected in any manner materially adverse to any party. Upon a determination that any term or other provision is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.
SECTION 3.6. Integration. This Agreement constitutes the
entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.
SECTION 3.7. Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of
this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute waiver of any such breach of any other covenant, duty, agreement or condition.
SECTION 3.8. Submission to Jurisdiction; Waiver of Jury Trial.
(a) Any and all disputes which cannot be settled amicably, including any ancillary claims of any party, arising out of, relating to or in
connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement (including the validity, scope and enforceability of this arbitration provision) shall be
finally settled by arbitration conducted by a single arbitrator in New York in accordance with the then- existing Rules of Arbitration of the International Chamber of Commerce. If the parties to the dispute fail to agree on the selection of an
arbitrator within thirty (30) days of the receipt of the request for arbitration, the International Chamber of Commerce shall make the appointment. The arbitrator shall be a lawyer and shall conduct the proceedings in the English language.
Performance under this Agreement shall continue if reasonably possible during any arbitration proceedings.
8
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(b) Notwithstanding the provisions of paragraph (a), the Blackstone Holdings Partnerships
may cause any Blackstone Holdings Partnership to bring, on behalf of the Issuer or such Blackstone Holdings Partnership or on behalf of one or more Blackstone Holdings Limited Partners, an action or special proceeding in any court of competent
jurisdiction for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, and/or enforcing an arbitration award and, for the purposes of this paragraph (b), each Blackstone Holdings
Limited Partner (i) expressly consents to the application of paragraph (c) of this Section 3.8 to any such action or proceeding, (ii) agrees that proof shall not be required that monetary damages for breach of the provisions of
this Agreement would be difficult to calculate and that remedies at law would be inadequate, and (iii) irrevocably appoints the Blackstone Holdings Partnerships as such Blackstone Holdings Limited Partner’s agents for service of process
in connection with any such action or proceeding and agrees that service of process upon such agent, who shall promptly advise such Blackstone Holdings Limited Partner of any such service of process, shall be deemed in every respect effective
service of process upon the Blackstone Holdings Limited Partner in any such action or proceeding.
(c) (i) EACH BLACKSTONE HOLDINGS
LIMITED PARTNER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF COURTS LOCATED IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 3.8, OR ANY JUDICIAL PROCEEDING ANCILLARY TO
AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT. Such ancillary judicial proceedings include any suit, action or proceeding to compel arbitration, to obtain temporary or preliminary judicial
relief in aid of arbitration, or to confirm an arbitration award. The parties acknowledge that the fora designated by this paragraph (c) have a reasonable relation to this Agreement, and to the parties’ relationship with one another.
(ii) The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may
have to personal jurisdiction or to the laying of venue of any such ancillary suit, action or proceeding brought in any court referred to in the preceding paragraph of this Section 3.8 and such parties agree not to plead or claim the same.
(d) Notwithstanding any provision of this Agreement to the contrary, this Section 3.8 shall be construed to the maximum extent possible
to comply with the laws of the State of Delaware, including the Delaware Uniform Arbitration Act (10 Del. C. § 5701 et seq.) (the “Delaware Arbitration Act”). If, nevertheless, it shall be determined by a court of competent
jurisdiction that any provision or wording of this Section 3.8, including any rules of the International Chamber of Commerce, shall be invalid or unenforceable under the Delaware Arbitration Act, or other applicable law, such invalidity shall
not invalidate all of this Section 3.8. In that case, this Section 3.8 shall be construed so as to limit any term or provision so as to make it valid or enforceable within the requirements of the Delaware Arbitration Act or other
applicable law, and, in the event such term or provision cannot be so limited, this Section 3.8 shall be construed to omit such invalid or unenforceable provision.
SECTION 3.9. Counterparts. This Agreement may be executed and delivered (including by facsimile transmission) in one or more
counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Copies of executed
counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 3.9.
9
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SECTION 3.10. Tax Treatment. To the extent this Agreement imposes obligations upon a
particular Blackstone Holdings Partnership or a Blackstone Holdings General Partner, this Agreement shall be treated as part of the relevant Blackstone Holdings Partnership Agreement as described in Section 761(c) of the Code and Sections 1.704-1(b)(2)(ii)(h) and 1.761-1(c) of the Treasury Regulations. As required by the Code and the Treasury Regulations, the parties shall report any Exchange consummated
hereunder as a taxable sale of Blackstone Holdings Partnership Units by a Blackstone Holdings Limited Partner to Blackstone PB I, Blackstone PB II, Blackstone Holdings III GP Sub or Blackstone Holdings IV Holdco, as the case may be, and no party
shall take a contrary position on any income tax return, amendment thereof or communication with a taxing authority.
SECTION 3.11. Applicable Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of Delaware.
[Remainder
of Page Intentionally Left Blank]
10
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered, all as of the date first set forth above.
- BLACKSTONE INC.
- By: /s/ Victoria Portnoy
- Name: Victoria Portnoy
- Title: Managing Director—Assistant Secretary
- BLACKSTONE HOLDINGS AI L.P.
- By: Blackstone Holdings I/II GP L.L.C., its general partner
- By: Blackstone Inc., its sole member
- By: /s/ Victoria Portnoy
- Name: Victoria Portnoy
- Title: Managing Director—Assistant Secretary
- BLACKSTONE HOLDINGS I L.P.
- By: Blackstone Holdings I/II GP L.L.C., its general partner
- By: Blackstone Inc., its sole member
- By: /s/ Victoria Portnoy
- Name: Victoria Portnoy
- Title: Managing Director—Assistant Secretary
[*Signature Page to
Seventh Amended and Restated Exchange Agreement*]
---
- BLACKSTONE HOLDINGS II L.P.
- By: Blackstone Holdings I/II GP L.L.C., its general partner
- By: Blackstone Inc., its sole member
- By: /s/ Victoria Portnoy
- Name: Victoria Portnoy
- Title: Managing Director—Assistant Secretary
- BLACKSTONE HOLDINGS III L.P.
- By: Blackstone Holdings III GP L.P., its general partner
- By: Blackstone Holdings III GP Management L.L.C., its general partner
- By: Blackstone Inc., its sole member
- By: /s/ Victoria Portnoy
- Name: Victoria Portnoy
- Title: Managing Director—Assistant Secretary
[*Signature Page to
Seventh Amended and Restated Exchange Agreement*]
---
- BLACKSTONE HOLDINGS IV L.P.
- By: Blackstone Holdings IV GP L.P., its general partner
- By: Blackstone Holdings IV GP Management
- (Delaware) L.P., its general partner
- By: Blackstone Holdings IV GP Management
- L.L.C., its general partner
- By: Blackstone Inc., its sole member
- By: /s/ Victoria Portnoy
- Name: Victoria Portnoy
- Title: Managing Director—Assistant Secretary
[*Signature Page to
Seventh Amended and Restated Exchange Agreement*]
---
**EXHIBIT A**
[FORM OF]
NOTICE OF EXCHANGE
Blackstone Holdings I L.P.
Blackstone Holdings AI L.P.
Blackstone Holdings II L.P.
Blackstone Holdings III L.P.
Blackstone Holdings IV L.P.
345 Park Avenue
New York, New York 10154
Attention: Victoria Portnoy
Electronic Mail: victoria.portnoy@blackstone.com
Reference is hereby made to the Seventh Amended and Restated Exchange Agreement, dated as of July 2, 2026 (the “Exchange Agreement”),
among Blackstone Inc., Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and the Blackstone Holdings Limited Partners from time to time party thereto, as
amended from time to time. Capitalized terms used but not defined herein shall have the meanings given to them in the Exchange Agreement.
The undersigned Blackstone Holdings Limited Partner hereby elects to exchange the number of Blackstone Holdings Partnership Units set forth
below for an equal number of shares of Common Stock to be issued in its name.
**Name of Blackstone Holdings Limited Partner:**
**Number of Blackstone Holdings Partnership Units** to be exchanged on the [____] exchange date: _________________ units (or such lesser number as the
Issuer may determine in its sole discretion, which determination shall be final and binding and shall be conclusively determined by the exchange of such lesser number of Blackstone Holdings Partnership Units).
The undersigned acknowledges that this Notice of Exchange is binding and may only be withdrawn with the consent of the Issuer prior to the exchange date.
The undersigned (1) hereby represents that the Blackstone Holdings Partnership Units set forth above are owned by the undersigned, (2) hereby
exchanges such Blackstone Holdings Partnership Units for shares of Common Stock as set forth in the Exchange Agreement, (3) hereby irrevocably constitutes and appoints any officer of the Blackstone Holdings Partnerships, the Blackstone Holdings
General Partners or the Issuer as its attorney, with full power of substitution, to exchange said Blackstone Holdings Partnership Units on the books of the Blackstone Holdings Partnerships for shares of Common Stock on the books of the Issuer, with
full power of substitution in the premises.
---
IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice of
Exchange to be executed and delivered by the undersigned or by its duly authorized attorney.
- Name:
- Dated: ______________
2
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## EX-10.2
SEC source: [d158269dex102.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex102.htm)
**Exhibit 10.2**
***Execution Version***
**HIGHLY
CONFIDENTIAL & TRADE SECRET**
BMA ASIA III GP L.P.
AMENDED AND RESTATED EXEMPTED LIMITED PARTNERSHIP AGREEMENT
DATED AUGUST 7, 2026
EFFECTIVE FROM FEBRUARY 3, 2025
THE
EXEMPTED LIMITED PARTNERSHIP INTERESTS (THE “INTERESTS”) OF BMA ASIA III GP L.P. (THE “PARTNERSHIP”) HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), THE SECURITIES LAWS OF ANY STATE IN THE UNITED STATES OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. SUCH INTERESTS MUST BE ACQUIRED FOR
INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY APPLICABLE STATE SECURITIES LAWS, AND ANY OTHER APPLICABLE SECURITIES LAWS;
AND (II) THE TERMS AND CONDITIONS OF THIS AMENDED AND RESTATED EXEMPTED LIMITED PARTNERSHIP AGREEMENT. THE INTERESTS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH SUCH LAWS AND THIS AMENDED AND RESTATED EXEMPTED LIMITED PARTNERSHIP
AGREEMENT. THEREFORE, PURCHASERS OF SUCH INTERESTS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
---
**TABLE OF CONTENTS**
| Line item | | Page |
| --- | --- | --- |
| ARTICLE I DEFINITIONS | | 1 |
| Section 1.1. | Definitions | 1 |
| Section 1.2. | Terms Generally | 17 |
| ARTICLE II GENERAL PROVISIONS | | 17 |
| Section 2.1. | General Partner, Limited Partner, Special Partner | 17 |
| Section 2.2. | Formation; Name; Foreign Jurisdictions | 18 |
| Section 2.3. | Term | 18 |
| Section 2.4. | Purposes; Powers | 18 |
| Section 2.5. | Place of Business | 21 |
| Section 2.6. | Withdrawal of Initial Limited Partner | 21 |
| Section 2.7. | Reorganization or Reconstitution and De-Registration of the Partnership | 21 |
| ARTICLE III MANAGEMENT | | 21 |
| Section 3.1. | General Partner | 21 |
| Section 3.2. | Partner Voting, etc. | 22 |
| Section 3.3. | Management | 22 |
| Section 3.4. | Responsibilities of Partners | 24 |
| Section 3.5. | Exculpation and Indemnification | 25 |
| Section 3.6. | Representations of Partners | 27 |
| Section 3.7. | Tax Representation and Further Assurances | 28 |
| ARTICLE IV CAPITAL OF THE PARTNERSHIP | | 29 |
| Section 4.1. | Capital Contributions by Partners | 29 |
| Section 4.2. | Interest | 36 |
| Section 4.3. | Withdrawals of Capital | 37 |
| ARTICLE V PARTICIPATION IN PROFITS AND LOSSES | | 37 |
| Section 5.1. | General Accounting Matters | 37 |
| Section 5.2. | GP-Related Capital Accounts | 38 |
| Section 5.3. | GP-Related Profit Sharing Percentages | 39 |
| Section 5.4. | Allocations of GP-Related Net Income (Loss) | 40 |
| Section 5.5. | Liability of Partners | 41 |
| Section 5.6. | [Intentionally omitted.] | 41 |
| Section 5.7. | Repurchase Rights, etc. | 41 |
| Section 5.8. | Distributions | 42 |
| Section 5.9. | Service Fee | 49 |
| Section 5.10. | Business Expenses | 49 |
| Section 5.11. | Tax Capital Accounts; Tax Allocations | 49 |
i
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TABLE OF CONTENTS
(continued)
| Line item | | Page |
| --- | --- | --- |
| ARTICLE VI ADDITIONAL PARTNERS; WITHDRAWAL OF PARTNERS; SATISFACTION AND DISCHARGE OF PARTNERSHIP INTERESTS; TERMINATION | | 51 |
| Section 6.1. | Additional Partners | 51 |
| Section 6.2. | Withdrawal of Partners | 52 |
| Section 6.3. | GP-Related Partner Interests Not Transferable | 53 |
| Section 6.4. | Consequences upon Withdrawal of a Partner | 53 |
| Section 6.5. | Satisfaction and Discharge of a Withdrawn Partner’s GP-Related Partner Interests | 54 |
| Section 6.6. | Dissolution of the Partnership | 59 |
| Section 6.7. | Certain Tax Matters | 60 |
| Section 6.8. | Special Basis Adjustments | 61 |
| ARTICLE VII CAPITAL COMMITMENT INTERESTS; CAPITAL CONTRIBUTIONS; ALLOCATIONS; DISTRIBUTIONS | | 62 |
| Section 7.1. | Capital Commitment Interests, etc. | 62 |
| Section 7.2. | Capital Commitment Capital Accounts | 63 |
| Section 7.3. | Allocations | 63 |
| Section 7.4. | Distributions | 64 |
| Section 7.5. | Valuations | 68 |
| Section 7.6. | Disposition Election | 69 |
| Section 7.7. | Capital Commitment Special Distribution Election | 69 |
| ARTICLE VIII WITHDRAWAL, ADMISSION OF NEW PARTNERS | | 69 |
| Section 8.1. | Partner Withdrawal; Repurchase of Capital Commitment Interests | 69 |
| Section 8.2. | Transfer of Partner’s Capital Commitment Interest | 75 |
| Section 8.3. | Compliance with Law | 75 |
| ARTICLE IX DISSOLUTION | | 75 |
| Section 9.1. | Dissolution | 75 |
| Section 9.2. | Final Distribution | 76 |
| Section 9.3. | Amounts Reserved Related to Capital Commitment Partner Interests | 76 |
| ARTICLE X MISCELLANEOUS | | 77 |
| Section 10.1. | Submission to Jurisdiction; Waiver of Jury Trial | 77 |
| Section 10.2. | Ownership and Use of the Blackstone Name | 78 |
| Section 10.3. | Written Consent | 79 |
| Section 10.4. | Letter Agreements; Schedules | 79 |
| Section 10.5. | Governing Law; Separability of Provisions | 79 |
| Section 10.6. | Successors and Assigns; Third Party Beneficiaries | 79 |
| Section 10.7. | Confidentiality | 80 |
| Section 10.8. | Notices | 81 |
| Section 10.9. | Counterparts | 81 |
| Section 10.10. | Power of Attorney | 81 |
| Section 10.11. | Partner’s Will | 82 |
ii
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TABLE OF CONTENTS
(continued)
| Line item | | Page |
| --- | --- | --- |
| Section 10.12. | Cumulative Remedies | 82 |
| Section 10.13. | Legal Fees | 82 |
| Section 10.14. | Entire Agreement; Modifications | 82 |
| Section 10.15. | Effective Date | 83 |
| Section 10.16. | Compliance with Anti Money Laundering Requirements and Limited Partners Co-Operation | 83 |
iii
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**BMA ASIA III GP L.P.**
AMENDED AND RESTATED EXEMPTED LIMITED PARTNERSHIP AGREEMENT dated August 7, 2026, but with an effective date as between the parties
hereto of February 3, 2025 (the “Effective Date”), of BMA Asia III GP L.P., a Cayman Islands exempted limited partnership (the “Partnership”), by and among BMA Asia III L.L.C., a Delaware limited
liability company, as general partner of the Partnership (in its capacity as general partner of the Partnership, (the “General Partner”), Mapcal Limited, as initial limited partner (the “Initial Limited
Partner”), the limited partners listed as Limited Partners in the books and records of the Partnership and such other persons that are admitted to the Partnership as partners after the date hereof in accordance herewith.
W I T N E S S E T H
WHEREAS, the General Partner and the Initial Limited Partner have formed an exempted limited partnership under the laws of the Cayman Islands
under the name of BMA Asia III GP L.P. pursuant to an Initial Exempted Limited Partnership Agreement dated July 22, 2024 (the “Original Agreement”), and registered such partnership pursuant to the filing of a statement under
Section 9(1) of the Partnership Act with the Registrar on July 22, 2024; and
WHEREAS, the parties hereto desire to enter into
this Amended and Restated Exempted Limited Partnership Agreement, effective on the Effective Date, and hereby amend and restate the Original Agreement in its entirety and reflect the withdrawal of the Initial Limited Partner from the Partnership and
the admission of certain limited partners to the Partnership and to further make the modifications hereinafter set forth, in each case effective on the Effective Date;
NOW, THEREFORE, in consideration of the mutual promises and agreements herein made and intending to be legally bound hereby, the parties
hereto agree that the Original Agreement shall be amended and restated in its entirety as follows:
ARTICLE I
DEFINITIONS
Section 1.1. Definitions. Unless the context otherwise requires, the following terms shall have the following meanings for purposes of this Agreement:
“Adjustment Amount” has the meaning set forth in Section 8.1(b)(ii).
“Advancing Party” has the meaning set forth in Section 7.1(c).
“Affiliate” when used with reference to another person means any person (other than the Partnership),
directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with, such other person, which may include, for greater certainty and as the context requires, endowment funds, estate planning vehicles
(including any trusts, family members, family investment vehicles, descendant, trusts and other related persons and entities), charitable programs and other similar and/or related vehicles or accounts associated with or established by Blackstone
and/or its affiliates, partners and current and/or former employees and/or related persons.
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“Agreement” means this Amended and Restated Exempted
Limited Partnership Agreement, as it may be further amended, supplemented, restated or otherwise modified from time to time.
“Applicable Collateral Percentage” with respect to any Firm Collateral or Special Firm Collateral, has the
meaning set forth in the books and records of the Partnership with respect thereto.
“Associates Asia
III” means Blackstone Management Associates Asia III L.P., a Cayman Islands exempted limited partnership and the general partner of BCP Asia III, or any other entity that serves as the general partner, special general partner or managing
member of a vehicle indicated in the definition of BCP Asia III.
“Associates Asia III LP Agreement”
means the exempted limited partnership agreement, dated the date set forth therein, of Associates Asia III, as it may be amended, supplemented, restated or otherwise modified from time to time.
“Bankruptcy” means, with respect to any person, the occurrence of any of the following events: (i) the
filing of an application by such person for, or a consent to, the appointment of a trustee or custodian of his or her assets; (ii) the filing by such person of a voluntary petition in Bankruptcy or the seeking of relief under Title 11 of the
United States Code, as now constituted or hereafter amended, or the filing of a pleading in any court of record admitting in writing his or her inability to pay his or her debts as they become due; (iii) the failure of such person to pay his or
her debts as such debts become due; (iv) the making by such person of a general assignment for the benefit of creditors; (v) the filing by such person of an answer admitting the material allegations of, or his or her consenting to, or
defaulting in answering, a Bankruptcy petition filed against him or her in any Bankruptcy proceeding or petition seeking relief under Title 11 of the United States Code, as now constituted or as hereafter amended; or (vi) the entry of an order,
judgment or decree by any court of competent jurisdiction adjudicating such person a bankrupt or insolvent or for relief in respect of such person or appointing a trustee or custodian of his or her assets and the continuance of such order, judgment
or decree unstayed and in effect for a period of 60 consecutive days.
“BCP Asia III” means
(i) Blackstone Capital Partners Asia III L.P., a Cayman Islands exempted limited partnership, (ii) any alternative investment vehicles relating to, or formed in connection with, any of the partnerships referred to in clauses (i) and
(iii) of this definition, (iii) any parallel fund, managed account or other capital vehicle relating to, or formed in connection with, the partnership referred to in clause (i) of this definition and (iv) any other limited
partnership, limited liability company or other entity (in each case, whether now or hereafter established) of which Associates Asia III or the General Partner serves, directly or indirectly, as the general partner, special general partner, manager,
managing member or in a similar capacity.
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“BCP Asia III Agreements” means the collective reference
to (i) the BCP Asia III Partnership Agreement and (ii) any other BCP Asia III partnership, limited liability company or other governing agreements, as each may be amended, supplemented, restated or otherwise modified from time to time.
“BCP Asia III Partnership Agreement” means the exempted limited partnership agreement of the limited
partnership named in clause (i) of the definition of “BCP Asia III,” as it may be amended, supplemented, restated or otherwise modified from time to time.
“BE Agreement” means the limited partnership agreement, limited liability company agreement or other
governing document of any limited partnership, limited liability company or other entity referred to in the definition of “Blackstone Entity,” as such limited partnership agreement, limited liability company agreement or other governing
document may be amended, supplemented, restated or otherwise modified to date, and as such limited partnership agreement, limited liability company agreement or other governing document may be further amended, supplemented, restated or otherwise
modified from time to time.
“BE Investment” means any direct or indirect investment by any Blackstone
Entity.
“Blackstone” means, collectively, Blackstone Inc., a Delaware corporation (as it may be
reconstituted), and any predecessors, or successors thereto, and any Affiliate thereof (excluding any natural persons and any portfolio companies, investments or similar entities of any Blackstone-sponsored fund (or any affiliate thereof that is not
otherwise an Affiliate of Blackstone Inc.)).
“Blackstone Capital Commitment” has the meaning set forth
in the BCP Asia III Partnership Agreement.
“Blackstone Entity” means any partnership, limited liability
company or other entity (excluding any natural persons and any portfolio companies of any Blackstone-sponsored fund) that is an Affiliate of Blackstone Inc., as designated by the General Partner in its sole discretion.
“Business Day” means any day other than a Saturday, Sunday or other day on which banks are authorized or
required by law to be closed in New York, New York.
“Capital Commitment Associates Asia III Partner
Interest” means the interest of the Partnership, if any, as a limited partner of Associates Asia III with respect to any Capital Commitment BCP Asia III Interest that may be held by Associates Asia III.
“Capital Commitment BCP Asia III Commitment” means the Capital Commitment (as defined in the BCP Asia III
Partnership Agreement), if any, of the Partnership or Associates Asia III to BCP Asia III that relates solely to the Capital Commitment BCP Asia III Interest, if any.
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“Capital Commitment BCP Asia III Interest” means
the Interest (as defined in the BCP Asia III Partnership Agreement), if any, of the Partnership or Associates Asia III as a capital partner in BCP Asia III.
“Capital Commitment BCP Asia III Investment” means the Partnership’s interest in a specific investment
of BCP Asia III , which interest may be held by the Partnership (i) through the Partnership’s direct interest in BCP Asia III through the Partnership’s Capital Commitment BCP Asia III Interest, if the Partnership holds the Capital
Commitment BCP Asia III Interest, or (ii) through the Partnership’s interest in Associates Asia III and Associates Asia III’s interest in BCP Asia III through Associates Asia III’s Capital Commitment BCP Asia III Interest, if
Associates Asia III holds the Capital Commitment BCP Asia III Interest.
“Capital Commitment Capital
Account” means, with respect to each Capital Commitment Investment for each Partner, the account maintained for such Partner to which are credited such Partner’s contributions to the Partnership with respect to such Capital
Commitment Investment and any net income allocated to such Partner pursuant to Section 7.3 with respect to such Capital Commitment Investment and from which are debited any distributions with respect to such Capital Commitment Investment to
such Partner and any net losses allocated to such Partner with respect to such Capital Commitment Investment pursuant to Section 7.3. In the case of any such distribution in kind, the Capital Commitment Capital Accounts for the related Capital
Commitment Investment shall be adjusted as if the asset distributed had been sold in a taxable transaction and the proceeds distributed in cash, and any resulting gain or loss on such sale shall be allocated to the Partners participating in such
Capital Commitment Investment pursuant to Section 7.3.
“Capital Commitment Class A
Interest” has the meaning set forth in Section 7.4(f).
“Capital Commitment
Class B Interest” has the meaning set forth in Section 7.4(f).
“Capital
Commitment Defaulting Party” has the meaning set forth in Section 7.4(g)(ii)(A).
“Capital
Commitment Deficiency Contribution” has the meaning set forth in Section 7.4(g)(ii)(A).
“Capital
Commitment Disposable Investment” has the meaning set forth in Section 7.4(f).
“Capital Commitment
Distributions” means, with respect to each Capital Commitment Investment, all amounts of distributions received by the Partnership with respect to such Capital Commitment Investment solely in respect of the Capital Commitment BCP Asia III
Interest, if any, less any costs, fees and expenses of the Partnership with respect thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership that are anticipated with respect thereto, in each case which the
General Partner may allocate to all or any portion of such Capital Commitment Investment as it may determine in good faith is appropriate.
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“Capital Commitment Giveback Amount” has the meaning set
forth in Section 7.4(g)(i).
“Capital Commitment Interest” means the interest of a Partner in a
specific Capital Commitment Investment as provided herein.
“Capital Commitment Investment” means any
Capital Commitment BCP Asia III Investment, but shall exclude any GP-Related Investment.
“Capital Commitment Liquidating Share” means, with respect to each Capital Commitment Investment, in the
case of dissolution of the Partnership, the related Capital Commitment Capital Account of a Partner (less amounts reserved in accordance with Section 9.3) immediately prior to dissolution.
“Capital Commitment Net Income (Loss)” means, with respect to each Capital Commitment Investment, all
amounts of income received by the Partnership with respect to such Capital Commitment Investment, including without limitation gain or loss in respect of the disposition, in whole or in part, of such Capital Commitment Investment, less any costs,
fees and expenses of the Partnership allocated thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership anticipated to be allocated thereto.
“Capital Commitment Partner Carried Interest” means, with respect to any Partner, the aggregate amount of
distributions or payments received by such Partner (in any capacity) from Affiliates of the Partnership in respect of or relating to “carried interest.” Capital Commitment Partner Carried Interest includes any amount initially received
by an Affiliate of the Partnership from any fund (including BCP Asia III , any similar funds formed after the date hereof, and any Other Blackstone Clients (as defined in the BCP Asia III Partnership Agreement), whether or not in existence as of the
date hereof) to which such Affiliate serves as general partner (or in another similar capacity) that exceeds such Affiliate’s *pro rata* share of distributions from such fund based upon capital contributions thereto (or the capital
contributions to make the investment of such fund giving rise to such “carried interest”).
“Capital
Commitment Partner Interest” means a Partner’s interest in the Partnership which relates (i) to any Capital Commitment BCP Asia III Interest held by the Partnership or (ii) through the Partnership and Associates Asia III,
to any Capital Commitment BCP Asia III Interest that may be held by Associates Asia III.
“Capital Commitment
Profit Sharing Percentage” means, with respect to each Capital Commitment Investment, the percentage interest of a Partner in Capital Commitment Net Income (Loss) from such Capital Commitment Investment set forth in the books and records
of the Partnership.
“Capital Commitment Recontribution Amount” has the meaning set forth in
Section 7.4(g)(i).
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“Capital Commitment-Related Capital Contributions” has
the meaning set forth in Section 7.1(b).
“Capital Commitment-Related Commitment” means, with
respect to any Partner, such Partner’s commitment to the Partnership relating to such Partner’s Capital Commitment Partner Interest, as set forth in the books and records of the Partnership, including, without limitation, any such
commitment that may be set forth in such Partner’s Commitment Agreement or SMD Agreement, if any.
“Capital
Commitment Special Distribution” has the meaning set forth in Section 7.7(a).
“Capital Commitment
Value” has the meaning set forth in Section 7.5.
“Carried Interest” means (i)
“Carried Interest Distributions” as defined in the BCP Asia III Partnership Agreement, and (ii) any other carried interest distribution to a Fund GP pursuant to any BCP Asia III Agreement. In the case of each of (i) and
(ii) above, except as determined by the General Partner, the amount shall not be less any costs, fees and expenses of the Partnership with respect thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership that
are anticipated with respect thereto (in each case which the General Partner may allocate among all or any portion of the GP-Related Investments as it determines in good faith is appropriate).
“Carried Interest Give Back Percentage” means, for any Partner or Withdrawn Partner, subject to
Section 5.8(e), the percentage determined by dividing (A) the aggregate amount of distributions received by such Partner or Withdrawn Partner from the Partnership or any Other Fund GPs or their Affiliates in respect of Carried Interest by
(B) the aggregate amount of distributions made to all Partners, Withdrawn Partners or any other person by the Partnership or any Other Fund GP or any of their Affiliates (in any capacity) in respect of Carried Interest. For purposes of
determining any “Carried Interest Give Back Percentage” hereunder, all Trust Amounts contributed to the Trust by the Partnership or any Other Fund GPs on behalf of a Partner or Withdrawn Partner (but not the Trust Income thereon) shall
be deemed to have been initially distributed or paid to the Partners and Withdrawn Partners as members, partners or other equity interest owners of the Partnership or any of the Other Fund GPs or their Affiliates.
“Carried Interest Sharing Percentage” means, with respect to each GP-Related Investment, the percentage interest of a Partner in Carried Interest from such GP-Related Investment set forth in the books and records of the Partnership.
“Cause” means the occurrence or existence of any of the following with respect to any Partner, as
determined fairly, reasonably, on an informed basis and in good faith by the General Partner: (i) (w) any breach by any Partner of any provision of any non-competition agreement, (x) any material
breach of this Agreement or any rules or regulations applicable to such Partner that are established by the General Partner, (y) such Partner’s deliberate failure to perform his or her duties to the Partnership or any of its Affiliates,
or (z) such Partner’s committing to or engaging in any conduct or behavior that
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is or may be harmful to the Partnership or any of its Affiliates in a material way as determined by the General Partner; *provided,* that in the case of any of the foregoing clauses (w),
(x), (y) and (z), the General Partner has given such Partner written notice (a “Notice of Breach”) within 15 days after the General Partner becomes aware of such action and such Partner fails to cure such breach, failure to
perform or conduct or behavior within 15 days after receipt of such Notice of Breach from the General Partner (or such longer period, not to exceed an additional 15 days, as shall be reasonably required for such cure; *provided,* that such
Partner is diligently pursuing such cure); (ii) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct against the Partnership or any of its Affiliates; or (iii) conviction (on the basis of a trial or by an
accepted plea of guilty or *nolo contendere*) of a felony (under U.S. law or its equivalent in any jurisdiction) or crime (including any misdemeanor charge involving moral turpitude, false statements or misleading omissions, forgery, wrongful
taking, embezzlement, extortion or bribery), or a determination by a court of competent jurisdiction, by a regulatory body or by a self-regulatory body having authority with respect to securities laws, rules or regulations of the applicable
securities industry, that such Partner individually has violated any applicable securities laws or any rules or regulations thereunder, or any rules of any such self-regulatory body (including, without limitation, any licensing requirement), if such
conviction or determination has a material adverse effect on (A) such Partner’s ability to function as a Partner of the Partnership, taking into account the services required of such Partner and the nature of the business of the
Partnership and its Affiliates or (B) the business of the Partnership and its Affiliates or (iv) becoming subject to an event described in Rule 506(d)(1)(i)-(viii) of Regulation D under the Securities Act.
“Clawback Adjustment Amount” has the meaning set forth in Section 5.8(e)(ii)(C).
“Clawback Amount” means the “Clawback Amount”, as defined in the BCP Asia III Partnership
Agreement, and any other clawback amount payable to the limited partners of BCP Asia III or to BCP Asia III pursuant to any BCP Asia III Agreement, as applicable.
“Clawback Provisions” means paragraph 9.2.8 of the BCP Asia III Partnership Agreement and any other similar
provisions in any other BCP Asia III Agreement existing heretofore or hereafter entered into.
“Code”
means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor statute. Any reference herein to a particular provision of the Code means, where appropriate, the corresponding provision in any successor statute.
“Commitment Agreements” means the agreements between the Partnership or an Affiliate thereof and Partners,
pursuant to which each Partner undertakes certain obligations, including the obligation to make capital contributions pursuant to Section 4.1 and/or Section 7.1. Each Commitment Agreement is hereby incorporated by reference as between the
Partnership and the relevant Partner.
“Contingent” means subject to repurchase rights and/or other
requirements.
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The term “control” when used with reference to any person
means the power to direct the management and policies of such person, directly or indirectly, by or through stock or other equity interest ownership, agency or otherwise, or pursuant to or in connection with an agreement, arrangement or
understanding (written or oral) with one or more other persons by or through stock or other equity interest ownership, agency or otherwise; and the terms “*controlling*” and “*controlled*” shall have meanings
correlative to the foregoing.
“Controlled Entity” when used with reference to another person means any
person controlled by such other person.
“Covered Person” has the meaning set forth in
Section 3.5(a).
“Deceased Partner” means any Partner or Withdrawn Partner who has died or who
suffers from Incompetence. For purposes hereof, references to a Deceased Partner shall refer collectively to the Deceased Partner and the estate and heirs or legal representative of such Deceased Partner, as the case may be, that have received such
Deceased Partner’s interest in the Partnership.
“Default Interest Rate” means the lower of
(i) the sum of (a) the Prime Rate and (b) 5%, or (ii) the highest rate of interest permitted under applicable law.
“Delaware Arbitration Act” has the meaning set forth in Section 10.1(d).
“Effective Date” has the meaning set forth in the recitals.
“Electronic Signature” has the meaning set forth in Section 10.9.
“Estate Planning Vehicle” has the meaning set forth in Section 6.3(a).
“Excess Holdback” has the meaning set forth in Section 4.1(d)(v)(A).
“Excess Holdback Percentage” has the meaning set forth in Section 4.1(d)(v)(A).
“Excess Tax-Related Amount” has the meaning set forth in
Section 5.8(e).
“Existing Partner” means any Partner who is neither a Retaining Withdrawn Partner
nor a Deceased Partner.
“Final Event” means the death, Total Disability, Incompetence, Bankruptcy,
winding up, dissolution or Withdrawal from the Partnership of any person who is a Partner.
“Firm
Advances” has the meaning set forth in Section 7.1(c).
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“Firm Collateral” means a Partner’s or Withdrawn
Partner’s interest in one or more partnerships or limited liability companies, in either case affiliated with the Partnership, and certain other assets of such Partner or Withdrawn Partner, in each case that has been pledged or made available
to the Trustee(s) to satisfy all or any portion of the Excess Holdback of such Partner or Withdrawn Partner as more fully described in the Partnership’s books and records; provided, that for all purposes hereof (and any other agreement
(*e.g.*, the Trust Agreement) that incorporates the meaning of the term “Firm Collateral” by reference), references to “Firm Collateral” shall include “Special Firm Collateral”, excluding references to
“Firm Collateral” in Section 4.1(d)(v) and Section 4.1(d)(viii).
“Firm Collateral
Realization” has the meaning set forth in Section 4.1(d)(v)(B).
“Fiscal Year” means a
calendar year, or any other period chosen by the General Partner.
“Former Blackstone Employee” has the
meaning set forth in Section 5.9.
“Fund GP” means the Partnership (only with respect to the GP-Related BCP Asia III Interest) and the Other Fund GPs.
“GAAP”
means U.S. generally accepted accounting principles.
“General Partner” means BMA Asia III L.L.C. and
any person admitted to the Partnership as an additional or substitute general partner of the Partnership in accordance with the provisions of this Agreement (until such time as such person ceases to be a general partner of the Partnership as
provided herein or in the Partnership Act).
“Giveback Amount(s)” means the amount(s) payable by
partners of BCP Asia III pursuant to the Giveback Provisions.
“Giveback Provisions” means paragraph
3.4.3 of the BCP Asia III Partnership Agreement and any other similar provisions in any other BCP Asia III Agreement existing heretofore or hereafter entered into.
“Governmental Entity” has the meaning set forth in Section 10.7(b).
“GP-Related Associates Asia III Interest” means the interest of the
Partnership as a limited partner of Associates Asia III with respect to the GP-Related BCP Asia III Interest, but does not include any interest of the Partnership in Associates Asia III with respect to any
Capital Commitment BCP Asia III Interest that may be held by Associates Asia III.
“GP-Related BCP Asia III Interest” means the interest of Associates
Asia III in BCP Asia III as general partner of BCP Asia III , excluding any Capital Commitment BCP Asia III Interest that may be held by Associates Asia III.
“GP-Related BCP Asia III Investment” means the Partnership’s
indirect interest in Associates Asia III’s indirect interest in an Investment (for purposes of this definition, as defined in the BCP Asia III Partnership Agreement) in Associates Asia III’s capacity as general partner and/or special
general partner of BCP Asia III , but does not include any Capital Commitment Investment.
9
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“GP-Related Capital
Account” has the meaning set forth in Section 5.2(a).
“GP-Related Capital Contributions” has the meaning set forth in
Section 4.1(a).
“GP-Related Class A
Interest” has the meaning set forth in Section 5.8(a)(ii).
“GP-Related Class B Interest” has the meaning set
forth in Section 5.8(a)(ii).
“GP-Related Commitment”, with
respect to any Partner, means such Partner’s commitment to the Partnership relating to such Partner’s GP-Related Partner Interest, as set forth in the books and records of the Partnership,
including, without limitation, any such commitment that may be set forth in such Partner’s Commitment Agreement or SMD Agreement, if any.
“GP-Related Defaulting Party” has the meaning set forth in
Section 5.8(d)(ii)(A).
“GP-Related Deficiency
Contribution” has the meaning set forth in Section 5.8(d)(ii)(A).
“GP-Related Disposable Investment” has the meaning set forth in
Section 5.8(a)(ii).
“GP-Related Giveback Amount” has the
meaning set forth in Section 5.8(d)(i)(A).
“GP-Related Investment” means any investment (direct or indirect) of the Partnership in respect of the GP-Related BCP Asia III Interest (including, without limitation, any GP-Related BCP Asia III Investment, but excluding any Capital Commitment Investment).
“GP-Related Net Income (Loss)” has the meaning set forth in
Section 5.1(b).
“GP-Related Partner Interest” of a Partner
means all interests of such Partner in the Partnership (other than such Partner’s Capital Commitment Partner Interest), including, without limitation, such Partner’s interest in the Partnership with respect to the GP-Related BCP Asia III Interest and with respect to all GP-Related Investments.
“GP-Related Profit Sharing Percentage” means the “Carried
Interest Sharing Percentage” and “Non-Carried Interest Sharing Percentage” of each Partner; provided, that any references in this Agreement to GP-Related Profit Sharing Percentages made (i) in connection with voting or voting rights or (ii) GP-Related Capital Contributions with respect to GP-Related Investments (including Section 5.3(b)) means the “Non-Carried Interest Sharing Percentage” of each Partner; provided further, that
the term “GP-Related Profit Sharing Percentage” shall not include any Capital Commitment Profit Sharing Percentage.
“GP-Related Recontribution Amount” has the meaning set forth in
Section 5.8(d)(i)(A).
“GP-Related Required Amounts” has
the meaning set forth in Section 4.1(a).
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“GP-Related Unallocated
Percentage” has the meaning set forth in Section 5.3(b).
“GP-Related Unrealized Net Income (Loss)” attributable to any GP-Related BCP Asia III Investment as of any date means the GP-Related Net Income (Loss) that would be realized by the Partnership with respect to such GP-Related BCP Asia III Investment if BCP Asia III ’s entire portfolio of investments were sold on such date for cash in an amount equal to their aggregate value on such date (determined in accordance with
Section 5.1(e)) and all distributions payable by BCP Asia III to the Partnership (indirectly through the general partner of BCP Asia III ) pursuant to any BCP Asia III Partnership Agreement with respect to such GP-Related BCP Asia III Investment were made on such date. “GP-Related Unrealized Net Income (Loss)” attributable to any other GP-Related Investment (other than any Capital Commitment Investment) as of any date means the GP-Related Net Income (Loss) that would be realized by the Partnership with
respect to such GP-Related Investment if such GP-Related Investment were sold on such date for cash in an amount equal to its value on such date (determined in
accordance with Section 5.1(e)).
“Holdback” has the meaning set forth in Section 4.1(d)(i).
“Holdback Percentage” has the meaning set forth in Section 4.1(d)(i).
“Holdback Vote” has the meaning set forth in Section 4.1(d)(iv)(A).
“Holdings” means Blackstone Holdings IV L.P., a Québec société en commandite.
“Incompetence” means, with respect to any Partner, the determination by the General Partner in its sole
discretion, after consultation with a qualified medical doctor, that such Partner is incompetent to manage his or her person or his or her property.
“Initial Holdback Percentages” has the meaning set forth in Section 4.1(d)(i).
“Initial Limited Partner” has the meaning set forth in the preamble hereto.
“Interest” means a Partner’s exempted limited partnership interest in the Partnership, including any
interest that is held by a Retaining Withdrawn Partner and including any Partner’s GP-Related Partner Interest and Capital Commitment Partner Interest.
“Investment” means any investment (direct or indirect) of the Partnership designated by the General Partner
from time to time as an investment in which the Partners’ respective interests shall be established and accounted for on a basis separate from the Partnership’s other businesses, activities and investments, including (a) GP-Related Investments, and (b) Capital Commitment Investments.
“Investor Note” means a promissory note of a Partner evidencing indebtedness incurred by such Partner to
purchase a Capital Commitment Interest, the terms of which were or are approved by the General Partner and which is secured by such Capital Commitment Interest, all other Capital Commitment Interests of such Partner and all other interests of such
Partner in Blackstone Entities; provided, that such promissory note may
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also evidence indebtedness relating to other interests of such Partner in Blackstone Entities, and such indebtedness shall be prepayable with Capital Commitment Net Income (whether or not such
indebtedness relates to Capital Commitment Investments) as set forth in this Agreement, the Investor Note, the other BE Agreements and any documentation relating to Other Sources; provided further, that references to “Investor
Notes” herein refer to multiple loans made pursuant to such note, whether made with respect to Capital Commitment Investments or other BE Investments, and references to an “Investor Note” refer to one such loan as the context
requires. In no way shall any indebtedness incurred to acquire Capital Commitment Interests or other interests in Blackstone Entities be considered part of the Investor Notes for purposes hereof if the Lender or Guarantor is not the lender or
guarantor with respect thereto.
“Investor Special Partner” means any Special Partner so designated at
the time of its admission by the General Partner as a Partner of the Partnership.
“Issuer” means the
issuer of any Security comprising part of an Investment.
“L/C” has the meaning set forth in
Section 4.1(d)(vi).
“L/C Partner” has the meaning set forth in Section 4.1(d)(vi).
“Lender or Guarantor” means Blackstone Holdings I L.P., in its capacity as lender or guarantor under the
Investor Notes, or any other Affiliate of the Partnership that makes or guarantees loans to enable a Partner to acquire Capital Commitment Interests or other interests in Blackstone Entities.
“Limited Partner” means each of the parties admitted as limited partners of the Partnership in accordance
with the terms hereof and listed as Limited Partners in the books and records of the Partnership or any person that has been admitted to the Partnership as a substituted or additional Limited Partner in accordance with the terms of this Agreement,
each in its capacity as a limited partner of the Partnership. For the avoidance of doubt, the term “Limited Partner” does not include the General Partner or any Special Partners (notwithstanding the fact that Special Partners are limited
partners of the Partnership).
“Loss Amount” has the meaning set forth in Section 5.8(e)(i)(A).
“Loss Investment” has the meaning set forth in Section 5.8(e).
“Losses” has the meaning set forth in Section 3.5(b)(i).
“Majority in Interest of the Partners” on any date (a “*vote date*”) means one or more
persons who are Partners (including the General Partner but excluding Nonvoting Special Partners) on the vote date and who, as of the last day of the most recent accounting period ending on or prior to the vote date (or as of such later date on or
prior to the vote date selected by the General Partner as of which the Partners’ capital account balances can be determined), have aggregate capital account balances representing at least a majority in amount of the total capital account
balances of all the persons who are Partners (including the General Partner but excluding Nonvoting Special Partners) on the vote date.
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“Moody’s” means Moody’s Investors Service,
Inc., or any successor thereto.
“Net Carried Interest Distribution” has the meaning set forth in
Section 5.8(e)(i)(C).
“Net Carried Interest Distribution Recontribution Amount” has the meaning
set forth in Section 5.8(e).
“Net GP-Related Recontribution
Amount” has the meaning set forth in Section 5.8(d)(i)(A).
“Non-Carried Interest” means, with respect to each GP-Related Investment, all amounts of distributions, other than Carried Interest and other than Capital Commitment Distributions, received by the Partnership with respect to such GP-Related Investment, less any costs, fees and expenses of the Partnership with respect thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership that are anticipated
with respect thereto, in each case which the General Partner may allocate to all or any portion of the GP-Related Investments as it may determine in good faith is appropriate.
“Non-Carried Interest Sharing Percentage” means, with respect to
each GP-Related Investment, the percentage interest of a Partner in Non-Carried Interest from such GP-Related Investment set
forth in the books and records of the Partnership.
“Non-Contingent” means generally not subject to repurchase rights or
other requirements.
“Nonvoting Partner*”* has the meaning set forth in Section 8.2.
“Nonvoting Special Partner” has the meaning set forth in Section 6.1(a).
“Original Agreement” has the meaning set forth in the recitals.
“Other Fund GPs” means Associates Asia III and any other entity (other than the Partnership) through which
any Partner, Withdrawn Partner or any other person directly receives any amounts of Carried Interest, and any successor thereto; provided, that this includes any other entity which has in its organizational documents a provision which
indicates that it is a “Fund GP” or an “Other Fund GP”; provided further, that notwithstanding any of the foregoing, neither BMA Asia III L.L.C. nor Holdings nor any Estate Planning Vehicle established for the
benefit of family members of any Partner or of any member or partner of any Other Fund GP shall be considered an “Other Fund GP” for purposes hereof.
“Other Sources” means (i) distributions or payments of Capital Commitment Partner Carried Interest
(which shall include amounts of Capital Commitment Partner Carried Interest which are not distributed or paid to a Partner but are instead contributed to a trust (or similar arrangement) to satisfy any “holdback” obligation with respect
thereto), and (ii) distributions from Blackstone Entities (other than the Partnership) to such Partner.
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“Partner” means any person who is a partner of the
Partnership, including the Limited Partners, the General Partner and the Special Partners. Except as otherwise specifically provided herein, no group of Partners, including the Special Partners and any group of Partners in the same Partner Category,
shall have any right to vote as a class on any matter relating to the Partnership, including, but not limited to, any merger, reorganization, winding up or dissolution.
“Partner Category” means the General Partner, Existing Partners, Retaining Withdrawn Partners or Deceased
Partners, each referred to as a group for purposes hereof.
“Partnership” has the meaning set forth in
the preamble hereto.
“Partnership Act” means the Exempted Limited Partnership Act (As Revised) of the
Cayman Islands, as amended from time to time, or any successor statute.
“Partnership Affiliate” has the
meaning set forth in Section 3.3(b).
“Partnership Affiliate Governing Agreement” has the meaning
set forth in Section 3.3(b).
“Partnership Representative” has the meaning set forth in
Section 6.7(b).
“Pledgable Blackstone Interests” has the meaning set forth in
Section 4.1(d)(v)(A).
“Prime Rate” means the rate of interest per annum publicly announced from
time to time by JPMorgan Chase Bank, N.A. as its prime rate.
“Qualifying Fund” means any fund
designated by the General Partner as a “Qualifying Fund”.
“Registrar” shall have the
meaning specified in Section 2.3.
“Repurchase Period” has the meaning set forth in
Section 5.8(c).
“Required Rating” has the meaning set forth in Section 4.1(d)(vi).
“Retained Portion” has the meaning set forth in Section 7.6(a).
“Retaining Withdrawn Partner” means a Withdrawn Partner who has retained a GP-Related Partner Interest, pursuant to Section 6.5(f) or otherwise. A Retaining Withdrawn Partner shall be considered a Nonvoting Special Partner for all purposes hereof.
“S&P” means Standard & Poor’s Ratings Group, and any successor thereto.
“Securities” means any debt or equity securities of an Issuer and its subsidiaries and other Controlled
Entities constituting part of an Investment, including without limitation common and preferred stock, interests in limited partnerships and interests in limited liability companies (including warrants, rights, put and call options and other options
relating thereto or any combination thereof), notes, bonds, debentures, trust receipts
14
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and other obligations, instruments or evidences of indebtedness, choses in action, other property or interests commonly regarded as securities, interests in real property, whether improved or
unimproved, interests in oil and gas properties and mineral properties, short-term investments commonly regarded as money-market investments, bank deposits and interests
in personal property of all kinds, whether tangible or intangible.
“Securities Act” means the U.S.
Securities Act of 1933, as amended from time to time, or any successor statute.
“Service Fee” has the
meaning set forth in Section 5.9.
“Settlement Date” has the meaning set forth in
Section 6.5(a).
“SMD Agreements” means the agreements between the Partnership and/or one or more
of its Affiliates and certain of the Partners, pursuant to which each such Partner undertakes certain obligations with respect to the Partnership and/or its Affiliates. The SMD Agreements are hereby incorporated by reference as between the
Partnership and the relevant Partner.
“Special Firm Collateral” means interests in a Qualifying Fund or
other assets that have been pledged to the Trustee(s) to satisfy all or any portion of a Partner’s or Withdrawn Partner’s Holdback obligation (excluding any Excess Holdback) as more fully described in the Partnership’s books and
records.
“Special Firm Collateral Realization” has the meaning set forth in
Section 4.1(d)(viii)(B).
“Special Partner” means any person shown in the books and records of the
Partnership as a Special Partner of the Partnership, including any Nonvoting Special Partner and any Investor Special Partner.
“Subject Investment” has the meaning set forth in Section 5.8(e)(i).
“Subject Partner” has the meaning set forth in Section 4.1(d)(iv)(A).
“Successor in Interest” means any (i) shareholder of; (ii) trustee, custodian, receiver or other
person acting in any Bankruptcy or reorganization proceeding with respect to; (iii) assignee for the benefit of the creditors of; (iv) officer, director or partner of; (v) trustee or receiver, or former officer, director or partner,
or other fiduciary acting for or with respect to the termination, winding up or dissolution of; or (vi) other executor, administrator, committee, legal representative or other successor or assign of, any Partner, whether by operation of law or
otherwise.
“Tax Advances” has the meaning set forth in Section 6.7(d).
“Third Party Rights Law” shall have the meaning specified in Section 3.5(b)(iii).
“TM” has the meaning set forth in Section 10.2.
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“Total Disability” means the inability of a Limited
Partner substantially to perform the services required of such Limited Partner (in its capacity as such or in any other capacity with respect to any Affiliate of the Partnership) for a period of six consecutive months by reason of physical or mental
illness or incapacity and whether arising out of sickness, accident or otherwise.
“Transfer” has the
meaning set forth in Section 8.2.
“Trust Account” has the meaning set forth in the Trust
Agreement.
“Trust Agreement” means the Trust Agreement, dated as of the date set forth therein, as
amended, supplemented, restated or otherwise modified from time to time, among the Partners, the Trustee(s) and certain other persons that may receive distributions in respect of or relating to Carried Interest from time to time.
“Trust Amount” has the meaning set forth in the Trust Agreement.
“Trust Income” has the meaning set forth in the Trust Agreement.
“Trustee(s)” has the meaning set forth in the Trust Agreement.
“Unadjusted Carried Interest Distribution” has the meaning set forth in Section 5.8(e)(i)(B).
“Unallocated Capital Commitment Interests” has the meaning set forth in Section 8.1(f).
“U.S.” means the United States of America.
“W-8BEN” has the meaning set forth in Section 3.7.
“” has the meaning
set forth in Section 3.7.
“W-8IMY” has the meaning set
forth in Section 3.7.
“W-9” has the meaning set
forth in Section 3.7.
“Withdraw” or “Withdrawal” means, with respect to a
Partner, such Partner ceasing to be a partner of the Partnership (except as a Retaining Withdrawn Partner) for any reason (including death, disability, removal, resignation, retirement or pursuant to the Partnership Act, whether such is voluntary or
involuntary), unless the context shall limit the type of withdrawal to a specific reason, and “Withdrawn” with respect to a Partner means, as aforesaid, such Partner ceasing to be a partner of the Partnership.
“Withdrawal Date” means the date of the Withdrawal from the Partnership of a Withdrawn Partner.
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## EX-10.3
SEC source: [d158269dex103.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex103.htm)
**Exhibit 10.3**
***Execution Version***
**HIGHLY
CONFIDENTIAL & TRADE SECRET**
BXLS YIELD GP L.P.
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT
DATED AS OF AUGUST 7, 2026
DEEMED EFFECTIVE AS OF SEPTEMBER 20, 2021
THE LIMITED PARTNERSHIP INTERESTS (THE “INTERESTS”) OF BXLS YIELD GP L.P. (THE “PARTNERSHIP”) HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), THE SECURITIES LAWS OF ANY STATE IN THE UNITED STATES OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND SUCH LAWS. SUCH INTERESTS MUST BE ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE OFFERED FOR SALE, PLEDGED, HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT IN COMPLIANCE WITH (I) THE SECURITIES ACT, ANY
APPLICABLE STATE SECURITIES LAWS, AND ANY OTHER APPLICABLE SECURITIES LAWS; AND (II) THE TERMS AND CONDITIONS OF THIS AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT. THE INTERESTS MAY NOT BE TRANSFERRED OF RECORD EXCEPT IN COMPLIANCE WITH
SUCH LAWS AND THIS AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT. THEREFORE, PURCHASERS OF SUCH INTERESTS WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.
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**TABLE OF CONTENTS**
| Line item | | Page |
| --- | --- | --- |
| ARTICLE I DEFINITIONS | | 1 |
| Section 1.1. | Definitions | 1 |
| Section 1.2. | Terms Generally | 17 |
| ARTICLE II GENERAL PROVISIONS | | 17 |
| Section 2.1. | General Partner, Limited Partner, Special Partner | 17 |
| Section 2.2. | Formation; Name; Foreign Jurisdictions | 17 |
| Section 2.3. | Term | 18 |
| Section 2.4. | Purposes; Powers | 18 |
| Section 2.5. | Place of Business | 20 |
| Section 2.6. | Withdrawal of Initial Limited Partner | 21 |
| Section 2.7. | Reorganization or Reconstitution and De-Registration of the Partnership | 21 |
| ARTICLE III MANAGEMENT | | 21 |
| Section 3.1. | General Partner | 21 |
| Section 3.2. | Partner Voting, etc. | 21 |
| Section 3.3. | Management | 22 |
| Section 3.4. | Responsibilities of Partners | 24 |
| Section 3.5. | Exculpation and Indemnification | 24 |
| Section 3.6. | Representations of Partners | 26 |
| Section 3.7. | Tax Representation and Further Assurances | 27 |
| ARTICLE IV CAPITAL OF THE PARTNERSHIP | | 28 |
| Section 4.1. | Capital Contributions by Partners | 28 |
| Section 4.2. | Interest | 36 |
| Section 4.3. | Withdrawals of Capital | 36 |
| ARTICLE V PARTICIPATION IN PROFITS AND LOSSES | | 36 |
| Section 5.1. | General Accounting Matters | 36 |
| Section 5.2. | GP-Related Capital Accounts | 38 |
| Section 5.3. | GP-Related Profit Sharing Percentages | 38 |
| Section 5.4. | Allocations of GP-Related Net Income (Loss) | 39 |
| Section 5.5. | Liability of Partners | 40 |
| Section 5.6. | [Intentionally omitted.] | 40 |
| Section 5.7. | Repurchase Rights, etc. | 40 |
| Section 5.8. | Distributions | 41 |
| Section 5.9. | Business Expenses | 48 |
| Section 5.10. | Tax Capital Accounts; Tax Allocations | 48 |
| Section 5.11. | Service Fee | 49 |
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**TABLE OF CONTENTS**
**(continued)**
| Line item | | Page |
| --- | --- | --- |
| ARTICLE VI ADDITIONAL PARTNERS; WITHDRAWAL OF PARTNERS; SATISFACTION AND DISCHARGE OF PARTNERSHIP INTERESTS; TERMINATION | | 49 |
| Section 6.1. | Additional Partners | 49 |
| Section 6.2. | Withdrawal of Partners | 50 |
| Section 6.3. | GP-Related Partner Interests Not Transferable | 51 |
| Section 6.4. | Consequences upon Withdrawal of a Partner | 52 |
| Section 6.5. | Satisfaction and Discharge of a Withdrawn Partner’s GP-Related Partner Interests | 53 |
| Section 6.6. | Dissolution of the Partnership | 58 |
| Section 6.7. | Certain Tax Matters | 58 |
| Section 6.8. | Special Basis Adjustments | 60 |
| ARTICLE VII CAPITAL COMMITMENT INTERESTS; CAPITAL CONTRIBUTIONS; ALLOCATIONS; DISTRIBUTIONS | | 60 |
| Section 7.1. | Capital Commitment Interests, etc. | 60 |
| Section 7.2. | Capital Commitment Capital Accounts | 61 |
| Section 7.3. | Allocations | 61 |
| Section 7.4. | Distributions | 62 |
| Section 7.5. | Valuations | 66 |
| Section 7.6. | Disposition Election | 67 |
| Section 7.7. | Capital Commitment Special Distribution Election | 67 |
| ARTICLE VIII WITHDRAWAL, ADMISSION OF NEW PARTNERS | | 67 |
| Section 8.1. | Partner Withdrawal; Repurchase of Capital Commitment Interests | 67 |
| Section 8.2. | Transfer of Partner’s Capital Commitment Interest | 73 |
| Section 8.3. | Compliance with Law | 73 |
| ARTICLE IX DISSOLUTION | | 74 |
| Section 9.1. | Dissolution | 74 |
| Section 9.2. | Final Distribution | 74 |
| Section 9.3. | Amounts Reserved Related to Capital Commitment Partner Interests | 74 |
| ARTICLE X MISCELLANEOUS | | 75 |
| Section 10.1. | Submission to Jurisdiction; Waiver of Jury Trial | 75 |
| Section 10.2. | Ownership and Use of the Blackstone Name | 76 |
| Section 10.3. | Written Consent | 77 |
| Section 10.4. | Letter Agreements; Schedules | 77 |
| Section 10.5. | Governing Law; Separability of Provisions | 77 |
| Section 10.6. | Successors and Assigns; Third Party Beneficiaries | 77 |
| Section 10.7. | Confidentiality | 78 |
| Section 10.8. | Notices | 79 |
| Section 10.9. | Counterparts | 79 |
| Section 10.10. | Power of Attorney | 79 |
| Section 10.11. | Partner’s Will | 79 |
-ii-
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**TABLE OF CONTENTS**
**(continued)**
| Line item | | Page |
| --- | --- | --- |
| Section 10.12. | Cumulative Remedies | 80 |
| Section 10.13. | Legal Fees | 80 |
| Section 10.14. | Entire Agreement; Modifications | 80 |
| Section 10.15. | Headings | 80 |
-iii-
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**BXLS YIELD GP L.P.**
AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT of BXLS YIELD GP L.P., a Delaware limited partnership
(the “Partnership”), dated as of August 7, 2026, and deemed effective as of September 20, 2021, by and among BXLS Yield L.L.C., a Cayman Islands limited liability company, as general partner of the Partnership (in
its capacity as general partner of the Partnership (the “General Partner”)), Robert Liptak (the “Initial Limited Partner”), as initial limited partner, and such other persons that are admitted to the
Partnership as partners after the date hereof in accordance herewith.
W I T N E S S E T H
WHEREAS, the Partnership was formed pursuant to the Delaware Revised Uniform Limited Partnership Act, 6 Del.
C. § 17-101, et seq., as it may be amended from time to time (the “Partnership Act”), pursuant to a certificate of limited partnership filed in the office of the Secretary of
State of the State of Delaware on August 13, 2021;
WHEREAS, the General Partner and the Initial Limited Partner entered into a
Limited Partnership Agreement, dated as of August 15, 2021 (the “Original Agreement”); and
WHEREAS, the
parties hereto desire to enter into this Agreement, and hereby amend and restate the Original Agreement in its entirety and reflect the withdrawal of the Initial Limited Partner from the Partnership and the admission of certain limited partners to
the Partnership and to further make modifications hereinafter set forth, in each case effective on September 20, 2021.
NOW,
THEREFORE, in consideration of the mutual promises and agreements herein made and intending to be legally bound hereby, the parties hereto agree that the Original Agreement shall be amended and restated in its entirety as follows:
ARTICLE I
DEFINITIONS
Section 1.1. Definitions. Unless the context otherwise requires, the following terms shall have the following meanings for
purposes of this Agreement:
“Adjustment Amount” has the meaning set forth in Section 8.1(b)(ii).
“Advancing Party” has the meaning set forth in Section 7.1(c).
“Affiliate” when used with reference to another person means any person (other than the Partnership),
directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with, such other person, which may include, for greater certainty and as the context requires, endowment funds, estate planning vehicles
(including any trusts, family members, family investment vehicles, descendant, trusts and other related persons and entities), charitable programs and other similar and/or related vehicles or accounts associated with or established by Blackstone
and/or its affiliates, partners and current and/or former employees and/or related persons.
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“Agreement” means this Amended and Restated Limited
Partnership Agreement, as it may be further amended, supplemented, restated or otherwise modified from time to time.
“Applicable Collateral Percentage” with respect to any Firm Collateral or Special Firm Collateral, has the
meaning set forth in the books and records of the Partnership with respect thereto.
“Bankruptcy” means,
with respect to any person, the occurrence of any of the following events: (i) the filing of an application by such person for, or a consent to, the appointment of a trustee or custodian of his or her assets; (ii) the filing by such person
of a voluntary petition in Bankruptcy or the seeking of relief under Title 11 of the United States Code, as now constituted or hereafter amended, or the filing of a pleading in any court of record admitting in writing his or her inability to
pay his or her debts as they become due; (iii) the failure of such person to pay his or her debts as such debts become due; (iv) the making by such person of a general assignment for the benefit of creditors; (v) the filing by such
person of an answer admitting the material allegations of, or his or her consenting to, or defaulting in answering, a Bankruptcy petition filed against him or her in any Bankruptcy proceeding or petition seeking relief under Title 11 of the
United States Code, as now constituted or as hereafter amended; or (vi) the entry of an order, judgment or decree by any court of competent jurisdiction adjudicating such person a bankrupt or insolvent or for relief in respect of such person or
appointing a trustee or custodian of his or her assets and the continuance of such order, judgment or decree unstayed and in effect for a period of 60 consecutive days.
“BE Agreement” means the limited partnership agreement, limited liability company agreement or other
governing document of any limited partnership, limited liability company or other entity referred to in the definition of “Blackstone Entity,” as such limited partnership agreement, limited liability company agreement or other governing
document may be amended, supplemented, restated or otherwise modified to date, and as such limited partnership agreement, limited liability company agreement or other governing document may be further amended, supplemented, restated or otherwise
modified from time to time.
“BE Investment” means any direct or indirect investment by any Blackstone
Entity.
“Blackstone” means, collectively, Blackstone Inc., a Delaware corporation, and any predecessor
or successor thereto, and any Affiliate thereof (excluding any natural persons and any portfolio companies, investments or similar entities of any Blackstone-sponsored fund (or any affiliate thereof that is not otherwise an Affiliate of Blackstone
Inc.)).
“Blackstone Capital Commitment” has the meaning set forth in the BXLS Yield Partnership
Agreement.
2
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“Blackstone Entity” means any partnership, limited
liability company or other entity (excluding any natural persons and any portfolio companies of any Blackstone-sponsored fund) that is an Affiliate of Blackstone Inc., as designated by the General Partner in
its sole discretion.
“Business Day” means any day other than a Saturday, Sunday or other day on which
banks are authorized or required by law to be closed in New York, New York.
“BXLS Yield” means
(i) Blackstone Life Sciences Yield L.P., a Delaware limited partnership, (ii) any alternative investment vehicles relating to, or formed in connection with, any of the partnerships referred to in clauses (i) and (iii) of this
definition, (iii) any parallel fund, managed account or other capital vehicle relating to, or formed in connection with, the partnership referred to in clause (i) of this definition, (iv) any feeder fund relating to, or formed in
connection with, any of the partnerships referred to in clauses (i) and (iii) of this definition and (v) any other limited partnership, limited liability company or other entity (in each case, whether now or hereafter established) of which
Yield Associates or the General Partner serves, directly or indirectly, as the general partner, special general partner, manager, managing member or in a similar capacity.
“BXLS Yield Agreements” means the collective reference to (i) the BXLS Yield Partnership Agreement and
(ii) any other BXLS Yield partnership, limited liability company or other governing agreements, as each may be amended, supplemented, restated or otherwise modified from time to time.
“BXLS Yield Partnership Agreement” means the partnership agreement of the limited partnership named in
clause (i) of the definition of “BXLS Yield,” as it may be amended, supplemented, restated or otherwise modified from time to time.
“Capital Commitment BXLS Yield Commitment” means the Capital Commitment (as defined in the BXLS Yield
Partnership Agreement), if any, of the Partnership or Yield Associates to BXLS Yield that relates solely to the Capital Commitment BXLS Yield Interest, if any.
“Capital Commitment BXLS Yield Interest” means the Interest (as defined in the BXLS Yield Partnership
Agreement), if any, of the Partnership or Yield Associates as a capital partner in BXLS Yield.
“Capital
Commitment BXLS Yield Investment” means the Partnership’s interest in a specific investment of BXLS Yield, which interest may be held by the Partnership (i) through the Partnership’s direct interest in BXLS Yield through
the Partnership’s Capital Commitment BXLS Yield Interest, if the Partnership holds the Capital Commitment BXLS Yield Interest, or (ii) through the Partnership’s interest in Yield Associates and Yield Associates’ interest in
BXLS Yield through Yield Associates’ Capital Commitment BXLS Yield Interest, if Yield Associates holds the Capital Commitment BXLS Yield Interest.
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“Capital Commitment Capital Account” means, with respect
to each Capital Commitment Investment for each Partner, the account maintained for such Partner to which are credited such Partner’s contributions to the Partnership with respect to such Capital Commitment Investment and any net income
allocated to such Partner pursuant to Section 7.3 with respect to such Capital Commitment Investment and from which are debited any distributions with respect to such Capital Commitment Investment to such Partner and any net losses allocated to
such Partner with respect to such Capital Commitment Investment pursuant to Section 7.3. In the case of any such distribution in kind, the Capital Commitment Capital Accounts for the related Capital Commitment Investment shall be adjusted as if
the asset distributed had been sold in a taxable transaction and the proceeds distributed in cash, and any resulting gain or loss on such sale shall be allocated to the Partners participating in such Capital Commitment Investment pursuant to
Section 7.3.
“Capital Commitment Class A Interest” has the meaning set forth in
Section 7.4(f).
“Capital Commitment Class B Interest” has the meaning set forth
in Section 7.4(f).
“Capital Commitment Defaulting Party” has the meaning set forth in
Section 7.4(g)(ii)(A).
“Capital Commitment Deficiency Contribution” has the meaning set forth in
Section 7.4(g)(ii)(A).
“Capital Commitment Disposable Investment” has the meaning set forth in
Section 7.4(f).
“Capital Commitment Distributions” means, with respect to each Capital Commitment
Investment, all amounts of distributions received by the Partnership with respect to such Capital Commitment Investment solely in respect of the Capital Commitment BXLS Yield Interest, if any, less any costs, fees and expenses of the Partnership
with respect thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership that are anticipated with respect thereto, in each case which the General Partner may allocate to all or any portion of such Capital
Commitment Investment as it may determine in good faith is appropriate.
“Capital Commitment Giveback
Amount” has the meaning set forth in Section 7.4(g)(i).
“Capital Commitment Interest”
means the interest of a Partner in a specific Capital Commitment Investment as provided herein.
“Capital
Commitment Investment” means any Capital Commitment BXLS Yield Investment, but shall exclude any GP-Related Investment.
“Capital Commitment Liquidating Share” means, with respect to each Capital Commitment Investment, in the
case of dissolution of the Partnership, the related Capital Commitment Capital Account of a Partner (less amounts reserved in accordance with Section 9.3) immediately prior to dissolution.
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“Capital Commitment Net Income (Loss)” means, with
respect to each Capital Commitment Investment, all amounts of income received by the Partnership with respect to such Capital Commitment Investment, including without limitation gain or loss in respect of the disposition, in whole or in part, of
such Capital Commitment Investment, less any costs, fees and expenses of the Partnership allocated thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership anticipated to be allocated thereto.
“Capital Commitment Partner Carried Interest” means, with respect to any Partner, the aggregate amount of
distributions or payments received by such Partner (in any capacity) from Affiliates of the Partnership in respect of or relating to “carried interest.” Capital Commitment Partner Carried Interest includes any amount initially received
by an Affiliate of the Partnership from any fund (including BXLS Yield, any similar funds formed after the date hereof, and any Other Blackstone Clients (as defined in the BXLS Yield Partnership Agreement), whether or not in existence as of the date
hereof) to which such Affiliate serves as general partner (or in another similar capacity) that exceeds such Affiliate’s *pro rata* share of distributions from such fund based upon capital contributions thereto (or the capital
contributions to make the investment of such fund giving rise to such “carried interest”).
“Capital
Commitment Partner Interest” means a Partner’s interest in the Partnership which relates (i) to any Capital Commitment BXLS Yield Interest held by the Partnership or (ii) through the Partnership and Yield Associates, to any
Capital Commitment BXLS Yield Interest that may be held by Yield Associates.
“Capital Commitment Profit Sharing
Percentage” means, with respect to each Capital Commitment Investment, the percentage interest of a Partner in Capital Commitment Net Income (Loss) from such Capital Commitment Investment set forth in the books and records of the
Partnership.
“Capital Commitment Recontribution Amount” has the meaning set forth in
Section 7.4(g)(i).
“Capital Commitment-Related Capital
Contributions” has the meaning set forth in Section 7.1(b).
“Capital Commitment-Related Commitment” means, with respect to any Partner, such Partner’s commitment to the Partnership relating to such Partner’s Capital Commitment Partner Interest, as set forth in the books
and records of the Partnership, including, without limitation, any such commitment that may be set forth in such Partner’s Commitment Agreement or SMD Agreement, if any.
“Capital Commitment Special Distribution” has the meaning set forth in Section 7.7(a).
“Capital Commitment Value” has the meaning set forth in Section 7.5.
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“Capital Commitment Yield Associates Partner Interest”
means the interest of the Partnership, if any, as a limited partner of Yield Associates with respect to any Capital Commitment BXLS Yield Interest that may be held by Yield Associates.
“Carried Interest” means (i) “Carried Interest Distributions” as defined in the BXLS
Yield Partnership Agreement, and (ii) any other carried interest distribution to a Fund GP pursuant to any BXLS Yield Agreement. In the case of each of (i) and (ii) above, except as determined by the General Partner, the amount shall not
be less any costs, fees and expenses of the Partnership with respect thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership that are anticipated with respect thereto (in each case which the General Partner
may allocate among all or any portion of the GP-Related Investments as it determines in good faith is appropriate).
“Carried Interest Give Back Percentage” means, for any Partner or Withdrawn Partner, subject to
Section 5.8(e), the percentage determined by dividing (A) the aggregate amount of distributions received by such Partner or Withdrawn Partner from the Partnership or any Other Fund GPs or their Affiliates in respect of Carried Interest by
(B) the aggregate amount of distributions made to all Partners, Withdrawn Partners or any other person by the Partnership or any Other Fund GP or any of their Affiliates (in any capacity) in respect of Carried Interest. For purposes of
determining any “Carried Interest Give Back Percentage” hereunder, all Trust Amounts contributed to the Trust by the Partnership or any Other Fund GPs on behalf of a Partner or Withdrawn Partner (but not the Trust Income thereon) shall
be deemed to have been initially distributed or paid to the Partners and Withdrawn Partners as members, partners or other equity interest owners of the Partnership or any of the Other Fund GPs or their Affiliates.
“Carried Interest Sharing Percentage” means, with respect to each GP-Related Investment, the percentage interest of a Partner in Carried Interest from such GP-Related Investment set forth in the books and records of the Partnership.
“Cause” means the occurrence or existence of any of the following with respect to any Partner, as
determined fairly, reasonably, on an informed basis and in good faith by the General Partner: (i) (w) any breach by any Partner of any provision of any non-competition agreement, (x) any
material breach of this Agreement or any rules or regulations applicable to such Partner that are established by the General Partner, (y) such Partner’s deliberate failure to perform his or her duties to the Partnership or any of its
Affiliates, or (z) such Partner’s committing to or engaging in any conduct or behavior that is or may be harmful to the Partnership or any of its Affiliates in a material way as determined by the General Partner; *provided,* that in
the case of any of the foregoing clauses (w), (x), (y) and (z), the General Partner has given such Partner written notice (a “Notice of Breach”) within 15 days after the General Partner becomes aware of such action and such
Partner fails to cure such breach, failure to perform or conduct or behavior within 15 days after receipt of such Notice of Breach from the General Partner (or such longer period, not to exceed an additional 15 days, as shall be reasonably required
for such cure; *provided,* that such Partner is diligently pursuing such cure); (ii) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct against the Partnership or any of its Affiliates; or (iii) conviction
(on the basis of a trial or by an accepted plea of guilty or *nolo*
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*contendere*) of a felony (under U.S. law or its equivalent in any jurisdiction) or crime (including any misdemeanor charge involving moral turpitude, false statements or misleading
omissions, forgery, wrongful taking, embezzlement, extortion or bribery), or a determination by a court of competent jurisdiction, by a regulatory body or by a self-regulatory body having authority with
respect to securities laws, rules or regulations of the applicable securities industry, that such Partner individually has violated any applicable securities laws or any rules or regulations thereunder, or any rules of any such self-regulatory body (including, without limitation, any licensing requirement), if such conviction or determination has a material adverse effect on (A) such Partner’s ability to function as a Partner of
the Partnership, taking into account the services required of such Partner and the nature of the business of the Partnership and its Affiliates or (B) the business of the Partnership and its Affiliates or (iv) becoming subject to an event
described in Rule 506(d)(1)(i)-(viii) of Regulation D under the Securities Act.
“Clawback Adjustment Amount” has the meaning set forth in Section 5.8(e)(ii)(C).
“Clawback Amount” means the “Clawback Amount”, as defined in the BXLS Yield
Partnership Agreement, and any other clawback amount payable to the limited partners of BXLS Yield or to BXLS Yield pursuant to any BXLS Yield Agreement, as applicable.
“Clawback Provisions” means paragraph 9.2.8 of the BXLS Yield Partnership Agreement and any other
similar provisions in any other BXLS Yield Agreement existing heretofore or hereafter entered into.
“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, or any successor statute.
Any reference herein to a particular provision of the Code means, where appropriate, the corresponding provision in any successor statute.
“Commitment Agreements” means the agreements between the Partnership or an Affiliate thereof and Partners,
pursuant to which each Partner undertakes certain obligations, including the obligation to make capital contributions pursuant to Section 4.1 and/or Section 7.1. Each Commitment Agreement is hereby incorporated by reference as between the
Partnership and the relevant Partner.
“Contingent” means subject to repurchase rights and/or other
requirements.
The term “control” when used with reference to any person means the power to direct the
management and policies of such person, directly or indirectly, by or through stock or other equity interest ownership, agency or otherwise, or pursuant to or in connection with an agreement, arrangement or understanding (written or oral) with one
or more other persons by or through stock or other equity interest ownership, agency or otherwise; and the terms “*controlling*” and “*controlled*” shall have meanings correlative to the foregoing.
“Controlled Entity” when used with reference to another person means any person controlled by such other
person.
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“Covered Person” has the meaning set forth in
Section 3.5(a).
“Deceased Partner” means any Partner or Withdrawn Partner who has died or who
suffers from Incompetence. For purposes hereof, references to a Deceased Partner shall refer collectively to the Deceased Partner and the estate and heirs or legal representative of such Deceased Partner, as the case may be, that have received such
Deceased Partner’s interest in the Partnership.
“Default Interest Rate” means the lower of
(i) the sum of (a) the Prime Rate and (b) 5% or (ii) the highest rate of interest permitted under applicable law.
“Delaware Arbitration Act” has the meaning set forth in Section 10.1(d).
“Electronic Signature” has the meaning set forth in Section 10.9.
“Estate Planning Vehicle” has the meaning set forth in Section 6.3(a).
“Excess Holdback” has the meaning set forth in Section 4.1(d)(v)(A).
“Excess Holdback Percentage” has the meaning set forth in Section 4.1(d)(v)(A).
“Excess Tax-Related Amount” has the meaning set forth in
Section 5.8(e).
“Existing Partner” means any Partner who is neither a Retaining Withdrawn Partner
nor a Deceased Partner.
“Final Event” means the death, Total Disability, Incompetence, Bankruptcy,
liquidation, dissolution or Withdrawal from the Partnership of any person who is a Partner.
“Firm
Advances” has the meaning set forth in Section 7.1(c).
“Firm Collateral” means a
Partner’s or Withdrawn Partner’s interest in one or more partnerships or limited liability companies, in either case affiliated with the Partnership, and certain other assets of such Partner or Withdrawn Partner, in each case that has
been pledged or made available to the Trustee(s) to satisfy all or any portion of the Excess Holdback of such Partner or Withdrawn Partner as more fully described in the Partnership’s books and records; provided, that for all purposes
hereof (and any other agreement (*e.g.*, the Trust Agreement) that incorporates the meaning of the term “Firm Collateral” by reference), references to “Firm Collateral” shall include “Special Firm
Collateral”, excluding references to “Firm Collateral” in Section 4.1(d)(v) and Section 4.1(d)(viii).
“Firm Collateral Realization” has the meaning set forth in Section 4.1(d)(v)(B).
“Fiscal Year” means a calendar year, or any other period chosen by the General Partner.
“Former Blackstone Employee” has the meaning set forth in Section 5.11.
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“Fund GP” means the Partnership (only with respect to the GP-Related BXLS Yield Interest) and the Other Fund GPs.
“GAAP”
means U.S. generally accepted accounting principles.
“General Partner” means BXLS Yield L.L.C. and any
person admitted to the Partnership as an additional or substitute general partner of the Partnership in accordance with the provisions of this Agreement (until such time as such person ceases to be a general partner of the Partnership as provided
herein or in the Partnership Act).
“Giveback Amount(s)” means the amount(s) payable by partners of BXLS
Yield pursuant to the Giveback Provisions.
“Giveback Provisions” means paragraph 3.4.3 of the BXLS
Yield Partnership Agreement and any other similar provisions in any other BXLS Yield Agreement existing heretofore or hereafter entered into.
“Governmental Entity” has the meaning set forth in Section 10.7(b).
“GP-Related BXLS Yield Interest” means the interest of Yield
Associates in BXLS Yield as general partner of BXLS Yield, excluding any Capital Commitment BXLS Yield Interest that may be held by Yield Associates.
“GP-Related BXLS Yield Investment” means the
Partnership’s indirect interest in Yield Associates’ indirect interest in an Investment (for purposes of this definition, as defined in the BXLS Yield Partnership Agreement) in Yield Associates’ capacity as general partner of BXLS
Yield, but does not include any Capital Commitment Investment.
“GP-Related Capital Account” has the meaning set forth in
Section 5.2(a).
“GP-Related Capital Contributions”
has the meaning set forth in Section 4.1(a).
“GP-Related Class A Interest” has the meaning set forth in Section 5.8(a)(ii).
“GP-Related Class B Interest” has the meaning set forth in Section 5.8(a)(ii).
“GP-Related Commitment”, with respect to any Partner, means
such Partner’s commitment to the Partnership relating to such Partner’s GP-Related Partner Interest, as set forth in the books and records of the Partnership, including, without limitation, any
such commitment that may be set forth in such Partner’s Commitment Agreement or SMD Agreement, if any.
“GP-Related Defaulting Party” has the meaning set forth in
Section 5.8(d)(ii)(A).
“GP-Related Deficiency
Contribution” has the meaning set forth in Section 5.8(d)(ii)(A).
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“GP-Related Disposable Investment” has the meaning set forth in Section 5.8(a)(ii).
“GP-Related Giveback Amount” has the meaning set forth in Section 5.8(d)(i)(A).
“GP-Related Investment” means any investment (direct or
indirect) of the Partnership in respect of the GP-Related BXLS Yield Interest (including, without limitation, any GP-Related BXLS Yield Investment, but excluding any
Capital Commitment Investment).
“GP-Related Net Income
(Loss)” has the meaning set forth in Section 5.1(b).
“GP-Related Partner Interest” of a Partner means all
interests of such Partner in the Partnership (other than such Partner’s Capital Commitment Partner Interest), including, without limitation, such Partner’s interest in the Partnership with respect to the GP-Related BXLS Yield Interest and with respect to all GP-Related Investments.
“GP-Related Profit Sharing Percentage” means
the “Carried Interest Sharing Percentage” and “Non-Carried Interest Sharing Percentage” of each Partner; provided, that any references in this Agreement to GP-Related Profit Sharing Percentages made (i) in connection with voting or voting rights or (ii) GP-Related Capital Contributions with respect to GP-Related Investments (including Section 5.3(b)) means the “Non-Carried Interest Sharing Percentage” of each Partner; provided further,
that the term “GP-Related Profit Sharing Percentage” shall not include any Capital Commitment Profit Sharing Percentage.
“GP-Related Recontribution Amount” has the meaning set forth
in Section 5.8(d)(i)(A).
“GP-Related Required
Amounts” has the meaning set forth in Section 4.1(a).
“GP-Related Unallocated Percentage” has the meaning set forth
in Section 5.3(b).
“GP-Related Unrealized Net Income (Loss)” attributable to any GP-Related BXLS Yield Investment as of any date means the GP-Related Net Income (Loss) that would be realized by the Partnership
with respect to such GP-Related BXLS Yield Investment if BXLS Yield’s entire portfolio of investments were sold on such date for cash in an amount equal to their aggregate value on such date (determined
in accordance with Section 5.1(e)) and all distributions payable by BXLS Yield to the Partnership (indirectly through the general partner of BXLS Yield) pursuant to any BXLS Yield Partnership Agreement with respect to such GP-Related BXLS Yield Investment were made on such date. “GP-Related Unrealized Net Income (Loss)” attributable to any other GP-Related Investment (other than any Capital Commitment Investment) as of any date means the GP-Related Net Income (Loss) that would be realized by the Partnership with
respect to such GP-Related Investment if such GP-Related Investment were sold on such date for cash in an amount equal to its value on such date (determined in
accordance with Section 5.1(e)).
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“GP-Related Yield
Associates Interest” means the interest of the Partnership as a limited partner of Yield Associates with respect to the GP-Related BXLS Yield Interest, but does not include any interest of the
Partnership in Yield Associates with respect to any Capital Commitment BXLS Yield Interest that may be held by Yield Associates.
“Holdback” has the meaning set forth in Section 4.1(d)(i).
“Holdback Percentage” has the meaning set forth in Section 4.1(d)(i).
“Holdback Vote” has the meaning set forth in Section 4.1(d)(iv)(A).
“Holdings” means Blackstone Holdings II L.P., a Delaware limited partnership.
“Incompetence” means, with respect to any Partner, the determination by the General Partner in its sole
discretion, after consultation with a qualified medical doctor, that such Partner is incompetent to manage his or her person or his or her property.
“Initial Holdback Percentages” has the meaning set forth in Section 4.1(d)(i).
“Initial Limited Partner” has the meaning set forth in the preamble hereto.
“Interest” means a partnership interest (as defined in §17-101(13) of the Partnership Act) in the Partnership, including any interest that is held by a Retaining Withdrawn Partner and including any Partner’s GP-Related Partner Interest and Capital Commitment Partner Interest.
“Investment” means any investment (direct or indirect) of the Partnership designated by the General Partner
from time to time as an investment in which the Partners’ respective interests shall be established and accounted for on a basis separate from the Partnership’s other businesses, activities and investments, including (a) GP-Related Investments, and (b) Capital Commitment Investments.
“Investor Note” means a promissory note of a Partner evidencing indebtedness incurred by such Partner to
purchase a Capital Commitment Interest, the terms of which were or are approved by the General Partner and which is secured by such Capital Commitment Interest, all other Capital Commitment Interests of such Partner and all other interests of such
Partner in Blackstone Entities; provided, that such promissory note may also evidence indebtedness relating to other interests of such Partner in Blackstone Entities, and such indebtedness shall be prepayable with Capital Commitment Net
Income (whether or not such indebtedness relates to Capital Commitment Investments) as set forth in this Agreement, the Investor Note, the other BE Agreements and any documentation relating to Other Sources; provided further, that
references to “Investor Notes” herein refer to multiple loans made pursuant to such note, whether made with respect to Capital Commitment Investments or other BE Investments, and references to an “Investor Note” refer to
one such loan as the context requires. In no way shall any indebtedness incurred to acquire Capital Commitment Interests or other interests in Blackstone Entities be considered part of the Investor Notes for purposes hereof if the Lender or
Guarantor is not the lender or guarantor with respect thereto.
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“Investor Special Partner” means any Special Partner so
designated at the time of its admission by the General Partner as a Partner of the Partnership.
“Issuer” means the issuer of any Security comprising part of an Investment.
“L/C” has the meaning set forth in Section 4.1(d)(vi).
“L/C Partner” has the meaning set forth in Section 4.1(d)(vi).
“Lender or Guarantor” means Blackstone Holdings I L.P., in its capacity as lender or guarantor under the
Investor Notes, or any other Affiliate of the Partnership that makes or guarantees loans to enable a Partner to acquire Capital Commitment Interests or other interests in Blackstone Entities.
“Limited Partner” means each of the parties admitted as limited partners of the Partnership in accordance
with the terms hereof and listed as Limited Partners in the books and records of the Partnership or any person that has been admitted to the Partnership as a substituted or additional Limited Partner in accordance with the terms of this Agreement,
each in its capacity as a limited partner of the Partnership. For the avoidance of doubt, the term “Limited Partner” does not include the General Partner or any Special Partners (notwithstanding the fact that Special Partners are
limited partners of the Partnership).
“Loss Amount” has the meaning set forth in
Section 5.8(e)(i)(A).
“Loss Investment” has the meaning set forth in Section 5.8(e).
“Losses” has the meaning set forth in Section 3.5(b)(i).
“Majority in Interest of the Partners” on any date (a “*vote date*”) means one or more
persons who are Partners (including the General Partner but excluding Nonvoting Special Partners) on the vote date and who, as of the last day of the most recent accounting period ending on or prior to the vote date (or as of such later date on or
prior to the vote date selected by the General Partner as of which the Partners’ capital account balances can be determined), have aggregate capital account balances representing at least a majority in amount of the total capital account
balances of all the persons who are Partners (including the General Partner but excluding Nonvoting Special Partners) on the vote date.
“Moody’s” means Moody’s Investors Service, Inc., or any successor thereto.
“Net Carried Interest Distribution” has the meaning set forth in Section 5.8(e)(i)(C).
“Net Carried Interest Distribution Recontribution Amount” has the meaning set forth in Section 5.8(e).
“Net GP-Related Recontribution Amount” has the meaning
set forth in Section 5.8(d)(i)(A).
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“Non-Carried Interest” means, with respect to each GP-Related Investment, all amounts of distributions, other than Carried Interest and other than Capital Commitment Distributions, received by the Partnership
with respect to such GP-Related Investment, less any costs, fees and expenses of the Partnership with respect thereto and less reasonable reserves for payment of costs, fees and expenses of the Partnership
that are anticipated with respect thereto, in each case which the General Partner may allocate to all or any portion of the GP-Related Investments as it may determine in good faith is appropriate.
“Non-Carried Interest Sharing Percentage” means, with respect
to each GP-Related Investment, the percentage interest of a Partner in Non-Carried Interest from such GP-Related Investment set
forth in the books and records of the Partnership.
“Non-Contingent” means generally not subject to repurchase
rights or other requirements.
“Nonvoting Partner*”* has the meaning set forth in Section 8.2.
“Nonvoting Special Partner” has the meaning set forth in Section 6.1(a).
“Original Agreement” has the meaning set forth in the recitals.
“Other Fund GPs” means Yield Associates and any other entity (other than the Partnership) through which any
Partner, Withdrawn Partner or any other person directly receives any amounts of Carried Interest, and any successor thereto; provided, that this includes any other entity which has in its organizational documents a provision which indicates
that it is a “Fund GP” or an “Other Fund GP”; provided further, that notwithstanding any of the foregoing, neither BXLS Yield L.L.C. nor Holdings nor any Estate Planning Vehicle established for the
benefit of family members of any Partner or of any member or partner of any Other Fund GP shall be considered an “Other Fund GP” for purposes hereof.
“Other Sources” means (i) distributions or payments of Capital Commitment Partner Carried Interest
(which shall include amounts of Capital Commitment Partner Carried Interest which are not distributed or paid to a Partner but are instead contributed to a trust (or similar arrangement) to satisfy any “holdback” obligation with respect
thereto), and (ii) distributions from Blackstone Entities (other than the Partnership) to such Partner.
“Partner” means any person who is a partner of the Partnership, including the Limited Partners, the General
Partner and the Special Partners. Except as otherwise specifically provided herein, no group of Partners, including the Special Partners and any group of Partners in the same Partner Category, shall have any right to vote as a class on any matter
relating to the Partnership, including, but not limited to, any merger, reorganization, dissolution or liquidation.
“Partner Category” means the General Partner, Existing Partners, Retaining Withdrawn Partners or Deceased
Partners, each referred to as a group for purposes hereof.
“Partnership” has the meaning set forth in
the preamble hereto.
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“Partnership Act” has the meaning set forth in the
preamble hereto.
“Partnership Affiliate” has the meaning set forth in Section 3.3(b).
“Partnership Affiliate Governing Agreement” has the meaning set forth in Section 3.3(b).
“Pledgable Blackstone Interests” has the meaning set forth in Section 4.1(d)(v)(A).
“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase
Bank, N.A. as its prime rate.
“Qualifying Fund” means any fund designated by the General Partner as
a “Qualifying Fund”.
“Repurchase Period” has the meaning set forth in
Section 5.8(c).
“Required Rating” has the meaning set forth in Section 4.1(d)(vi).
“Retained Portion” has the meaning set forth in Section 7.6(a).
“Retaining Withdrawn Partner” means a Withdrawn Partner who has retained a GP-Related Partner Interest, pursuant to Section 6.5(f) or otherwise. A Retaining Withdrawn Partner shall be considered a Nonvoting Special Partner for all purposes hereof.
“S&P” means Standard & Poor’s Ratings Group, and any successor thereto.
“Securities” means any debt or equity securities of an Issuer and its subsidiaries and other Controlled
Entities constituting part of an Investment, including without limitation, common and preferred stock, interests in limited partnerships and interests in limited liability companies (including warrants, rights, put and call options and other options
relating thereto or any combination thereof), notes, bonds, debentures, trust receipts and other obligations, instruments or evidences of indebtedness, choses in action, other property or interests commonly regarded as securities, interests in real
property, whether improved or unimproved, interests in oil and gas properties and mineral properties, short-term investments commonly regarded as money-market investments, bank deposits and interests in personal property of all kinds, whether tangible or intangible.
“Securities Act” means the U.S. Securities Act of 1933, as amended from time to time, or any successor
statute.
“Service Fee” has the meaning set forth in Section 5.11.
“Settlement Date” has the meaning set forth in Section 6.5(a).
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“SMD Agreements” means the agreements between the
Partnership and/or one or more of its Affiliates and certain of the Partners, pursuant to which each such Partner undertakes certain obligations with respect to the Partnership and/or its Affiliates. The SMD Agreements are hereby incorporated by
reference as between the Partnership and the relevant Partner.
“Special Firm Collateral” means
interests in a Qualifying Fund or other assets that have been pledged to the Trustee(s) to satisfy all or any portion of a Partner’s or Withdrawn Partner’s Holdback obligation (excluding any Excess Holdback) as more fully described in
the Partnership’s books and records.
“Special Firm Collateral Realization” has the meaning set
forth in Section 4.1(d)(viii)(B).
“Special Partner” means any person shown in the books and
records of the Partnership as a Special Partner of the Partnership, including any Nonvoting Special Partner and any Investor Special Partner.
“Subject Investment” has the meaning set forth in Section 5.8(e)(i).
“Subject Partner” has the meaning set forth in Section 4.1(d)(iv)(A).
“Successor in Interest” means any (i) shareholder of; (ii) trustee, custodian, receiver or other
person acting in any Bankruptcy or reorganization proceeding with respect to; (iii) assignee for the benefit of the creditors of; (iv) officer, director or partner of; (v) trustee or receiver, or former officer, director or partner,
or other fiduciary acting for or with respect to the dissolution, liquidation or termination of; or (vi) other executor, administrator, committee, legal representative or other successor or assign of, any Partner, whether by operation of law or
otherwise.
“Tax Advances” has the meaning set forth in Section 6.7(d).
“Tax Matters Partner” has the meaning set forth in Section 6.7(b).
“TM” has the meaning set forth in Section 10.2.
“Total Disability” means the inability of a Limited Partner substantially to perform the services required
of such Limited Partner (in its capacity as such or in any other capacity with respect to any Affiliate of the Partnership) for a period of six consecutive months by reason of physical or mental illness or incapacity and whether arising out of
sickness, accident or otherwise.
“Transfer” has the meaning set forth in Section 8.2.
“Trust Account” has the meaning set forth in the Trust Agreement.
“Trust Agreement” means the Trust Agreement, dated as of the date set forth therein, as amended,
supplemented, restated or otherwise modified from time to time, among the Partners, the Trustee(s) and certain other persons that may receive distributions in respect of or relating to Carried Interest from time to time.
15
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“Trust Amount” has the meaning set forth in the Trust
Agreement.
“Trust Income” has the meaning set forth in the Trust Agreement.
“Trustee(s)” has the meaning set forth in the Trust Agreement.
“Unadjusted Carried Interest Distribution” has the meaning set forth in Section 5.8(e)(i)(B).
“Unallocated Capital Commitment Interests” has the meaning set forth in Section 8.1(f).
“U.S.” means the United States of America.
“W-8BEN” has the meaning set forth in Section 3.7.
“W-8BEN-E” has
the meaning set forth in Section 3.7.
“W-8IMY” has
the meaning set forth in Section 3.7.
“W-9” has the
meaning set forth in Section 3.7.
“Withdraw” or “Withdrawal” means, with
respect to a Partner, such Partner ceasing to be a partner of the Partnership (except as a Retaining Withdrawn Partner) for any reason (including death, disability, removal, resignation or retirement, whether such is voluntary or involuntary),
unless the context shall limit the type of withdrawal to a specific reason, and “Withdrawn” with respect to a Partner means, as aforesaid, such Partner ceasing to be a partner of the Partnership.
“Withdrawal Date” means the date of the Withdrawal from the Partnership of a Withdrawn Partner.
“Withdrawn Partner” means a Limited Partner whose GP-Related Partner
Interest or Capital Commitment Partner Interest in the Partnership has been terminated for any reason, including the occurrence of an event specified in Section 6.2, and shall include, unless the context requires otherwise, the estate or legal
representatives of any such Partner.
“Yield Associates” means Blackstone Life Sciences Yield Associates
L.P., a Cayman Islands exempted limited partnership and the general partner of BXLS Yield, or any other entity that serves as the general partner or managing member of a vehicle indicated in the definition of BXLS Yield.
“Yield Associates LP Agreement” means the exempted limited partnership agreement, dated as of the date set
forth therein, of Yield Associates, as it may be amended, supplemented, restated or otherwise modified from time to time.
16
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Section 1.2. Terms Generally. The definitions in Section 1.1 shall apply
equally to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The term “*person*” includes individuals,
partnerships (including limited liability partnerships), companies (including limited liability companies), joint ventures, corporations, trusts, governments (or agencies or political subdivisions thereof) and other associations and entities. The
words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.
ARTICLE II
GENERAL PROVISIONS
Section 2.1. General Partner, Limited Partner, Special Partner. The Partners may be General Partners, Limited Partners or
Special Partners. The General Partner as of the date hereof is BXLS Yield L.L.C. and the Limited Partners as of the date hereof are those persons admitted as limited partners of the Partnership in accordance with the terms hereof and shown as
Limited Partners in the books and records of the Partnership and the Special Partners as of the date hereof are those persons shown as Special Partners in the books and records of the Partnership as of the date hereof. The books and records of the
Partnership contain the GP-Related Profit Sharing Percentage and GP-Related Commitment of each Partner (including, without limitation, the General Partner) with respect
to the GP-Related Investments of the Partnership as of the date hereof. The books and records of the Partnership contain the Capital Commitment Profit Sharing Percentage and Capital Commitment-Related Commitment of each Partner (including, without limitation, the General Partner) with respect to the Capital Commitment Investments of the Partnership as of the date hereof. The books and records
of the Partnership shall be amended by the General Partner from time to time in accordance with this Agreement to reflect additional GP-Related Investments, additional Capital Commitment Investments,
dispositions by the Partnership of GP-Related Investments, dispositions by the Partnership of Capital Commitment Investments, the GP-Related Profit Sharing Percentages
of the Partners (including, without limitation, the General Partner), as modified from time to time, the Capital Commitment Profit Sharing Percentages of the Partners (including, without limitation, the General Partner), as modified from time to
time, the admission of additional Partners, the Withdrawal of Partners and the transfer or assignment of interests in the Partnership pursuant to the terms of this Agreement. At the time of admission of each additional Partner, the General Partner
shall determine in its sole discretion the GP-Related Investments and Capital Commitment Investments in which such Partner shall participate and such Partner’s GP-Related Commitment, Capital Commitment-Related Commitment, GP-Related Profit Sharing Percentage with respect to each such GP-Related Investment and Capital Commitment Profit Sharing Percentage with respect to each such Capital Commitment Investment. Each Partner may have a GP-Related Partner
Interest and/or a Capital Commitment Partner Interest.
Section 2.2. Formation; Name; Foreign Jurisdictions. The Partnership
is hereby continued as a limited partnership pursuant to the Partnership Act and shall conduct its activities on and after the date hereof under the name of BXLS Yield GP L.P. The certificate of limited partnership of the Partnership may be amended
and/or restated from time to time by the General Partner, as an “authorized person” (within the meaning of the Partnership Act). The General Partner is further authorized to execute and deliver and file any other certificates (and
any amendments and/or restatements thereof) necessary for the Partnership to qualify to do business in a jurisdiction in which the Partnership may wish to conduct business.
17
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---
## EX-31.1
SEC source: [d158269dex311.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex311.htm)
**Exhibit 31.1**
**Chief Executive Officer Certification**
I, Stephen A. Schwarzman, certify that:
1.
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 of Blackstone Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 7, 2026
/s/ Stephen A. Schwarzman
Stephen A. Schwarzman
Chief Executive Officer
---
## EX-31.2
SEC source: [d158269dex312.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex312.htm)
**Exhibit 31.2**
**Chief Financial Officer Certification**
I, Michael S. Chae, certify that:
1.
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 of Blackstone Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: August 7, 2026
/s/ Michael S. Chae
Michael S. Chae
Chief Financial Officer
---
## EX-32.1
SEC source: [d158269dex321.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex321.htm)
**Exhibit 32.1**
**Certification of the Chief Executive Officer**
**Pursuant to 18 U.S.C. Section 1350,**
**As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
In connection with the Quarterly Report of Blackstone Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen A. Schwarzman, Chief Executive Officer of
the Company, certify, pursuant to 18 U.S.C. Section § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date:
August 7, 2026
/s/ Stephen A. Schwarzman
Stephen A. Schwarzman
Chief Executive Officer
\*
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.
---
## EX-32.2
SEC source: [d158269dex322.htm](https://www.sec.gov/Archives/edgar/data/1393818/000119312526340208/d158269dex322.htm)
**Exhibit 32.2**
**Certification of the Chief Financial Officer**
**Pursuant to 18 U.S.C. Section 1350,**
**As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**
In connection with the Quarterly Report of Blackstone Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael S. Chae, Chief Financial Officer of the
Company, certify, pursuant to 18 U.S.C. Section § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date:
August 7, 2026
/s/ Michael S. Chae
Michael S. Chae
Chief Financial Officer
\*
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.