Early Access

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 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).

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