10-KPeriod: FY2013

Blackstone Inc. Annual Report, Year Ended Dec 31, 2013

Filed February 28, 2014For Securities:BX

Summary

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 billion, 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 billion 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.

Financial Highlights

35 data points
Beta

Revenue

$6.61B

Net Income

$1.17B

17.7% Net Margin

EPS (Diluted)

$1.98

Total Assets

$29.68B

Cash & Equivalents

$832.00M

Free Cash Flow

$3.52B

Financial Statements
Beta
Revenue$6.61B
Operating Expenses$3.87B
Interest Expense$107.97M
Net Income$1.17B
EPS (Basic)$2.00
EPS (Diluted)$1.98
Shares Outstanding (Basic)587.02M
Shares Outstanding (Diluted)590.55M

Key Highlights

  • 1Total Assets Under Management (AUM) grew 26% to $265.8 billion, with inflows of $60.3 billion across all segments.
  • 2Realization activity significantly increased, reaching nearly $30 billion in 2013, up from $13 billion in 2012.
  • 3Strong performance in Private Equity and Real Estate segments drove substantial gains in Performance Fees and Investment Income.
  • 4Blackstone completed the acquisition of Strategic Partners Fund Solutions, adding $9.4 billion to AUM.
  • 5The company's credit rating was upgraded to A+ by S&P, signifying strong financial health.
  • 6Blackstone deployed $19.6 billion of capital across its funds, with nearly half deployed outside of North America for the first time.
  • 7The 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.

Frequently Asked Questions

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.

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.

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.

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.