01—Abstract
Summary
Summary of the 10-K filed March 1, 2018. Cited figures are marked; the original filing is the authoritative source.
Blackstone Inc. (BX) reported strong performance in its 2017 fiscal year, marked by record realization activity and distributions to shareholders.
Total assets under management (AUM) grew by 18% to $434.1 billiona, driven by record capital inflows of $108.0 billion across its diverse business segments. The firm highlighted significant achievements in its Private Equity segment, including record realization activity and strong fundraising for its Asia-focused private equity fund. The Real Estate segment saw success with its largest ever dedicated European Real Estate fund and its second Asia opportunistic real estate fund nearing its hard cap.
Blackstone's Credit segment launched Blackstone Insurance Solutions and acquired Harvest, contributing significantly to AUM growth. The company also emphasized its robust balance sheet, maintaining an industry-leading A+ / A+ credit rating from S&P and Fitch, with no net debt and substantial cash reserves.
02—Key points
Key Highlights
- Record realization activity in 2017, reaching $55.2 billion, including the sale of Logicor, Blackstone's largest private sale in firm history.
- Record assets under management (AUM) growth of 18% to $434.1 billion, with Fee-Earning Assets Under Management increasing by 21% to $335.3 billion.
- Record capital inflows of $108.0 billion in 2017, indicating strong continued fundraising success.
- Significant growth in Real Estate, with its fifth Europe-focused fund securing €7.8 billion and its second Asia opportunistic fund raising nearly $6 billion.
- Expansion of the Credit segment through the launch of Blackstone Insurance Solutions ($22 billion AUM) and the acquisition of Harvest ($11 billion AUM).
- Blackstone maintained industry-leading credit ratings (A+/A+ from S&P and Fitch) and a strong balance sheet with no net debt.
- Total cash distributions to shareholders for 2017 reached $3.3 billion, the highest aggregate level in the firm's history.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2017filed March 1, 2018Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $7.15B$5.15B | +38.8% |
| Operating Expenses | $3.75B$2.95B | +27.2% |
| Interest Expense | $197.49M$152.65M | +29.4% |
| Net Income | $1.47B$1.04B | +41.6% |
| EPS (Basic) | $2.21$1.60 | +38.1% |
| EPS (Diluted) | $2.21$1.56 | +41.7% |
| Shares Outstanding (Basic) | 665.45M649.48M | +2.5% |
| Shares Outstanding (Diluted) | 666.25M1.20B | −44.3% |
05—Questions
Frequently Asked Questions
What were Blackstone's key financial achievements in 2017?
Blackstone achieved record realization activity of $55.2 billion in 2017 and record capital inflows of $108.0 billion. Assets Under Management (AUM) grew by 18% to $434.1 billion, with Fee-Earning Assets Under Management up 21% to $335.3 billion. The firm also distributed a record $3.3 billion in cash distributions to shareholders.
How did Blackstone's different business segments perform in 2017?
All of Blackstone's investing businesses saw positive growth. Private Equity saw record realization activity. Real Estate successfully raised significant capital for its European and Asian funds. Credit expanded with the launch of Blackstone Insurance Solutions and the acquisition of Harvest. Hedge Fund Solutions had its best year on record for capital inflows.
What is Blackstone's financial position and creditworthiness?
Blackstone maintained a strong balance sheet with no net debt and $5.1 billion in total cash, cash equivalents, and corporate treasury investments. It also had an undrawn $1.5 billion revolving credit facility. S&P and Fitch affirmed Blackstone's A+/A+ credit ratings, making it one of the highest-rated firms in the financial services industry.
What new platform expansions or strategies did Blackstone highlight?
Blackstone highlighted its expansion through new product strategies and channels, noting that 61% of its AUM is from businesses that did not exist at its IPO. Key initiatives include Blackstone Insurance Solutions, a dedicated infrastructure fund, and growth in its core+ real estate business. The firm also continued to diversify its capital sources by offering solutions to retail investors.
06—Continue