01—Abstract
Summary
Summary of the 10-K filed February 27, 2015. Cited figures are marked; the original filing is the authoritative source.
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 billiona. 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.
02—Key points
Key Highlights
- Blackstone reported AUM of $290.4 billion as of December 31, 2014, with strong growth across all segments.
- Gross organic capital inflows reached a record $57 billion for 2014, demonstrating significant investor demand.
- Realization activity accelerated, with total realizations of $45 billion, up from $30 billion in 2013.
- The company maintained a strong balance sheet with no net debt and a $1.1 billion undrawn revolving credit facility.
- Blackstone secured industry-leading A+ credit ratings from S&P and Fitch.
- A plan was announced to spin off the financial advisory businesses into an independent, publicly traded company in 2015.
- Significant 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).
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2014filed February 27, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $7.48B$6.61B | +13.2% |
| Operating Expenses | $3.86B$3.87B | −0.3% |
| Interest Expense | $121.52M$107.97M | +12.6% |
| Net Income | $1.58B$1.17B | +35.3% |
| EPS (Basic) | $2.60$2.00 | +30.0% |
| EPS (Diluted) | $2.58$1.98 | +30.3% |
| Shares Outstanding (Basic) | 608.80M587.02M | +3.7% |
| Shares Outstanding (Diluted) | 613.18M590.55M | +3.8% |
05—Questions
Frequently Asked Questions
What was Blackstone's total Assets Under Management (AUM) at the end of 2014?
As of December 31, 2014, Blackstone's total Assets Under Management (AUM) stood at $290.4 billion.
How did Blackstone's capital inflows in 2014 compare to previous periods?
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.
What significant strategic move did Blackstone announce in 2014?
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.
What is Blackstone's financial health and credit standing as highlighted in the filing?
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.
06—Continue