01—Abstract
Summary
Summary of the 10-K filed February 28, 2014. Cited figures are marked; the original filing is the authoritative source.
Blackstone Inc. (BX) reported strong financial performance for the year ended December 31, 2013, driven by significant growth across its alternative asset management businesses.
Total Assets Under Management (AUM) increased by 26% to $265.8 billiona, fueled by $60.3 billion in inflows and robust market appreciation. Realization activity accelerated, with total realizations reaching nearly $30 billion, a substantial increase from $13 billion in 2012, bolstered by successful initial public offerings of portfolio companies. The company highlighted double-digit AUM growth across all investing businesses—Private Equity, Real Estate, Hedge Fund Solutions, and Credit—driven by substantial capital inflows and market appreciation.
Blackstone also completed a strategic acquisition of Strategic Partners Fund Solutions, adding $9.4 billionb to AUM. Furthermore, the firm's credit rating was upgraded to A+ by S&P, reflecting its strong balance sheet and financial health.
Blackstone also demonstrated a commitment to social impact through its Veterans Hiring Initiative. Overall, Blackstone demonstrated strong operational execution and financial growth in 2013, supported by favorable market conditions and strategic initiatives, positioning it well for continued expansion.
02—Key points
Key Highlights
- Total Assets Under Management (AUM) grew 26% to $265.8 billion, with inflows of $60.3 billion across all segments.
- Realization activity significantly increased, reaching nearly $30 billion in 2013, up from $13 billion in 2012.
- Strong performance in Private Equity and Real Estate segments drove substantial gains in Performance Fees and Investment Income.
- Blackstone completed the acquisition of Strategic Partners Fund Solutions, adding $9.4 billion to AUM.
- The company's credit rating was upgraded to A+ by S&P, signifying strong financial health.
- Blackstone deployed $19.6 billion of capital across its funds, with nearly half deployed outside of North America for the first time.
- The company reported a net income attributable to The Blackstone Group L.P. of $1.17 billion, a significant increase from $218.6 million in 2012.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 28, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $6.61B$4.02B | +64.5% |
| Operating Expenses | $3.87B$3.26B | +18.6% |
| Interest Expense | $107.97M$72.87M | +48.2% |
| Net Income | $1.17B$218.60M | +435.8% |
| EPS (Basic) | $2.00$0.41 | +387.8% |
| EPS (Diluted) | $1.98$0.41 | +382.9% |
| Shares Outstanding (Basic) | 587.02M533.70M | +10.0% |
| Shares Outstanding (Diluted) | 590.55M538.67M | +9.6% |
05—Questions
Frequently Asked Questions
What were Blackstone's key revenue drivers in 2013?
Blackstone's primary revenue drivers in 2013 were Performance Fees, which significantly increased due to strong fund performance, and Management and Advisory Fees, which also grew due to increased Fee-Earning Assets Under Management and higher transaction volumes in the Financial Advisory segment. Investment Income also contributed substantially due to gains across various segments.
How did Blackstone's Assets Under Management (AUM) change in 2013?
Blackstone experienced significant AUM growth in 2013, with total AUM increasing by 26% to $265.8 billion. This growth was driven by $60.3 billion in inflows across its various businesses and positive market appreciation.
What was the impact of the Strategic Partners acquisition?
The acquisition of Strategic Partners Fund Solutions in August 2013 was a key strategic move, adding $9.4 billion to Blackstone's Total Assets Under Management and strengthening its Private Equity segment, particularly its secondary fund of funds business.
How did Blackstone manage its expenses in 2013?
Total expenses increased by 19% to $3.9 billion, primarily due to a significant rise in Performance Fee Compensation, which was a direct result of the surge in Performance Fees Revenue. Compensation also increased due to business growth and the Strategic Partners acquisition, while General, Administrative and Other expenses decreased.
06—Continue