10-KPeriod: FY2010

Blackstone Inc. Annual Report, Year Ended Dec 31, 2010

Filed February 25, 2011For Securities:BX

Summary

Blackstone Inc.'s (BX) 2010 10-K filing reveals a strong year of recovery and growth following the 2008-2009 financial crisis. The company reported a significant increase in total revenues to $3.1 billion, up 76% from the prior year, driven by robust performance fees and investment income across its Private Equity, Real Estate, and Credit & Marketable Alternatives segments. Assets under management grew by 30% to $128.1 billion, demonstrating renewed investor confidence and successful capital deployment. The company highlighted strategic initiatives like its 40% investment in Brazilian asset manager Pátria Investments and the management agreement for Bank of America Merrill Lynch's Asian real estate assets, which collectively added substantial fee-earning assets. Blackstone also successfully raised capital for its seventh private equity fund amidst a challenging fundraising environment. The filing underscores Blackstone's diversified business model, resilient performance, and strategic focus on expanding its global reach and product offerings as key drivers for future growth.

Financial Highlights

35 data points
Beta

Revenue

$3.12B

Net Income

-$370.03M

-11.9% Net Margin

EPS (Diluted)

$-1.02

Total Assets

$18.84B

Cash & Equivalents

$588.62M

Free Cash Flow

-$426.05M

Financial Statements
Beta
Revenue$3.12B
Operating Expenses$4.14B
Interest Expense$41.23M
Net Income-$370.03M
EPS (Basic)$-1.02
EPS (Diluted)$-1.02
Shares Outstanding (Basic)364.02M
Shares Outstanding (Diluted)364.02M

Key Highlights

  • 1Total Revenues increased by 76% year-over-year to $3.1 billion, driven by strong performance fees and investment income.
  • 2Assets Under Management grew by 30% to $128.1 billion, reflecting increased investor capital and market appreciation.
  • 3Fee-Earning Assets Under Management increased by 14% to $109.5 billion, indicating growth in revenue-generating assets.
  • 4Completed a strategic 40% equity investment in Pátria Investments, a leading Brazilian alternative asset manager.
  • 5Secured a key agreement to manage Bank of America Merrill Lynch's Asian real estate assets, adding $2.1 billion in assets under management.
  • 6Successfully raised capital for its seventh private equity fund (Blackstone Capital Partners VI L.P.) despite a difficult market.
  • 7The company's Private Equity segment saw a significant improvement in investment income, with BCP V generating a 27% net return.

Frequently Asked Questions

Blackstone's total revenues saw a substantial increase of 76%, reaching $3.1 billion in 2010, up from $1.8 billion in 2009. This growth was primarily driven by a significant rebound in Performance Fees and Investment Income (Loss).

Assets Under Management increased by 30% to $128.1 billion. This growth was fueled by a combination of net inflows across various segments, market appreciation, and strategic acquisitions and partnerships, such as the investment in Pátria and the management agreement for Asian real estate assets.

Key strategic moves included purchasing a 40% equity interest in Pátria Investments in Brazil to expand its Latin American presence and closing an agreement to manage Bank of America Merrill Lynch's Asian real estate assets. Additionally, the company successfully raised capital for its seventh private equity fund.

All segments showed improvement. Private Equity revenue increased, Real Estate revenue rebounded significantly after a difficult 2009, Credit and Marketable Alternatives saw strong growth in management and performance fees, and Financial Advisory revenue increased, particularly driven by fund placement services.