10-KPeriod: FY2020

Blackstone Inc. Annual Report, Year Ended Dec 31, 2020

Filed February 26, 2021For Securities:BX

Summary

Blackstone Inc. (BX) reported total revenues of $6.1 billion for the fiscal year ended December 31, 2020, a decrease of 17% from the previous year, primarily impacted by $1.5 billion lower investment income due to COVID-19 effects. Despite the revenue decline, Management and Advisory Fees, Net increased by 18% to $4.1 billion, driven by growth in the Real Estate and Private Equity segments. Total Assets Under Management (AUM) grew to $618.6 billion by year-end 2020, an increase of $47.4 billion, demonstrating the firm's continued ability to attract capital across its diversified business segments. The company's Fee Related Earnings (FRE) increased by 15% to $2.3 billion, indicating a growing base of recurring revenue. Net income attributable to The Blackstone Group Inc. declined by 49% to $1.05 billion, largely due to the decrease in investment income and a less favorable change in the Tax Receivable Agreement Liability. The company maintained a strong liquidity position with $2.0 billion in cash and cash equivalents and $2.6 billion in corporate treasury investments.

Financial Highlights

42 data points
Beta

Revenue

$6.10B

Net Income

$1.05B

17.1% Net Margin

EPS (Diluted)

$1.50

Total Assets

$26.27B

Cash & Equivalents

$2.00B

Free Cash Flow

$1.82B

Financial Statements
Beta
Revenue$6.10B
Operating Expenses$3.48B
Interest Expense$166.16M
Net Income$1.05B
EPS (Basic)$1.50
EPS (Diluted)$1.50
Shares Outstanding (Basic)696.93M
Shares Outstanding (Diluted)697.26M

Key Highlights

  • 1Total Revenues decreased by 17% to $6.1 billion for the year ended December 31, 2020, primarily due to a 42% decrease in Net Income Attributable to The Blackstone Group Inc. to $1.05 billion.
  • 2Management and Advisory Fees, Net increased by 18% to $4.1 billion, driven by growth in Fee-Earning Assets Under Management, particularly in the Real Estate and Private Equity segments.
  • 3Total Assets Under Management (AUM) increased by 8% to $618.6 billion as of December 31, 2020.
  • 4Fee Related Earnings (FRE) increased by 15% to $2.3 billion, indicating a growing recurring revenue base.
  • 5The company reported $2.0 billion in cash and cash equivalents and $2.6 billion in corporate treasury investments as of December 31, 2020, maintaining a strong liquidity position.
  • 6The COVID-19 pandemic significantly impacted Investment Income (Loss), which decreased by 42% to $2.0 billion, mainly driven by declines in the Real Estate and Credit & Insurance segments.
  • 7Blackstone continued its dividend policy, paying $2.26 per share in dividends for 2020.

Frequently Asked Questions

Blackstone's total revenues decreased by 17% to $6.1 billion in 2020, largely due to a significant drop in investment income attributed to the COVID-19 pandemic. However, Management and Advisory Fees, Net saw a robust 18% increase, and Total Assets Under Management (AUM) grew to $618.6 billion, indicating the firm's resilience and continued capital raising success.

The COVID-19 pandemic had a material impact, particularly on investment income, which decreased by 42% due to lower valuations and realizations in certain sectors, especially within the Real Estate and Credit & Insurance segments. Despite these challenges, Fee Related Earnings (FRE) showed growth, demonstrating the strength of Blackstone's recurring revenue streams.

Blackstone's Total Assets Under Management (AUM) continued to grow, reaching $618.6 billion by the end of 2020, an 8% increase from the prior year. This growth was driven by strong inflows across its Private Equity, Real Estate, and Credit & Insurance segments.

Blackstone's intention is to pay quarterly dividends representing approximately 85% of its share of Distributable Earnings, subject to adjustments by the board of directors for business needs, investments, legal compliance, and future cash requirements. In 2020, the company paid total dividends of $2.26 per share.