10-KPeriod: FY2014

Blackstone Inc. Annual Report, Year Ended Dec 31, 2014

Filed February 27, 2015For Securities:BX

Summary

Blackstone Inc. (BX) reported strong financial results for the fiscal year ending December 31, 2014, showcasing significant growth in Assets Under Management (AUM) and a record year for gross organic capital inflows. The company demonstrated robust AUM growth across all its investing businesses, reaching $290.4 billion. This growth was driven by substantial capital inflows totaling $57 billion, a record for the alternative asset management industry, even without fundraising for its flagship private equity or real estate funds. Realization activity also accelerated, with total realizations rising to $45 billion, up from $30 billion in 2013, indicating successful exits from seasoned investments. Financially, Blackstone maintained a strong balance sheet with no net debt and affirmed A+ credit ratings from S&P and Fitch, positioning it as a highly-rated firm in the alternative asset management sector. A strategic move was announced to spin off its advisory businesses into an independent, publicly traded firm during 2015, a decision management believes will unlock significant market opportunities for a high-quality, independent advisory practice.

Financial Highlights

35 data points
Beta

Revenue

$7.48B

Net Income

$1.58B

21.2% Net Margin

EPS (Diluted)

$2.58

Total Assets

$31.50B

Cash & Equivalents

$1.41B

Free Cash Flow

$1.62B

Financial Statements
Beta
Revenue$7.48B
Operating Expenses$3.86B
Interest Expense$121.52M
Net Income$1.58B
EPS (Basic)$2.60
EPS (Diluted)$2.58
Shares Outstanding (Basic)608.80M
Shares Outstanding (Diluted)613.18M

Key Highlights

  • 1Blackstone reported AUM of $290.4 billion as of December 31, 2014, with strong growth across all segments.
  • 2Gross organic capital inflows reached a record $57 billion for 2014, demonstrating significant investor demand.
  • 3Realization activity accelerated, with total realizations of $45 billion, up from $30 billion in 2013.
  • 4The company maintained a strong balance sheet with no net debt and a $1.1 billion undrawn revolving credit facility.
  • 5Blackstone secured industry-leading A+ credit ratings from S&P and Fitch.
  • 6A plan was announced to spin off the financial advisory businesses into an independent, publicly traded company in 2015.
  • 7Significant fundraising success was noted in specific funds, including the second energy fund ($4.5 billion) and the first Asian real estate fund ($5.0 billion).

Frequently Asked Questions

As of December 31, 2014, Blackstone's total Assets Under Management (AUM) stood at $290.4 billion.

In 2014, Blackstone achieved a record year for gross organic capital inflows across its businesses, reaching $57 billion. This was notable as it occurred without fundraising for its flagship global private equity or real estate funds.

Blackstone announced plans in October 2014 to spin off its financial and strategic advisory services, restructuring and reorganization advisory services, and Park Hill fund placement businesses into a new, independent, publicly traded company. This transaction was expected to close in 2015.

Blackstone maintained a strong balance sheet with no net debt, $3.4 billion in total cash, corporate treasury, and liquid investments, and an $1.1 billion undrawn revolving credit facility. Both S&P and Fitch affirmed Blackstone's A+ / A+ credit ratings, making it one of the highest-rated global financial services firms and the highest-rated alternative asset manager.