10-KPeriod: FY2017

Blackstone Inc. Annual Report, Year Ended Dec 31, 2017

Filed March 1, 2018For Securities:BX

Summary

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 billion, 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.

Financial Highlights

38 data points
Beta

Revenue

$7.15B

Net Income

$1.47B

20.6% Net Margin

EPS (Diluted)

$2.21

Total Assets

$34.42B

Cash & Equivalents

$1.99B

Free Cash Flow

-$1.65B

Financial Statements
Beta
Revenue$7.15B
Operating Expenses$3.75B
Interest Expense$197.49M
Net Income$1.47B
EPS (Basic)$2.21
EPS (Diluted)$2.21
Shares Outstanding (Basic)665.45M
Shares Outstanding (Diluted)666.25M

Key Highlights

  • 1Record realization activity in 2017, reaching $55.2 billion, including the sale of Logicor, Blackstone's largest private sale in firm history.
  • 2Record assets under management (AUM) growth of 18% to $434.1 billion, with Fee-Earning Assets Under Management increasing by 21% to $335.3 billion.
  • 3Record capital inflows of $108.0 billion in 2017, indicating strong continued fundraising success.
  • 4Significant growth in Real Estate, with its fifth Europe-focused fund securing €7.8 billion and its second Asia opportunistic fund raising nearly $6 billion.
  • 5Expansion of the Credit segment through the launch of Blackstone Insurance Solutions ($22 billion AUM) and the acquisition of Harvest ($11 billion AUM).
  • 6Blackstone maintained industry-leading credit ratings (A+/A+ from S&P and Fitch) and a strong balance sheet with no net debt.
  • 7Total cash distributions to shareholders for 2017 reached $3.3 billion, the highest aggregate level in the firm's history.

Frequently Asked Questions

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.

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.

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.

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.