10-KPeriod: FY2021

Blackstone Inc. Annual Report, Year Ended Dec 31, 2021

Filed February 25, 2022For Securities:BX

Summary

Blackstone Inc. reported a significant increase in total revenues for the year ended December 31, 2021, reaching $22.6 billion, a substantial 270% jump from the previous year, primarily driven by a $14.8 billion increase in Investment Income (Loss). This surge was largely attributed to robust net unrealized appreciation across all segments, particularly in Real Estate and Private Equity, which saw significant growth in the carrying values of their investment holdings. The company's Fee Related Earnings also demonstrated strong growth, increasing by 100% to $2.4 billion, propelled by higher Fee Related Performance Revenues and Management Fees, Net. Net Realizations also contributed significantly, increasing by 75% to $873.3 million. Assets Under Management saw considerable expansion, with Total Assets Under Management growing by 42% to $880.9 billion and Fee-Earning Assets Under Management increasing by 38% to $650.0 billion, highlighting strong capital deployment and market appreciation. The company maintained a solid liquidity position with $2.1 billion in Cash and Cash Equivalents as of year-end 2021.

Financial Highlights

42 data points
Beta

Revenue

$22.58B

Net Income

$5.86B

25.9% Net Margin

EPS (Diluted)

$8.13

Total Assets

$41.20B

Cash & Equivalents

$2.12B

Free Cash Flow

$3.92B

Financial Statements
Beta
Revenue$22.58B
Operating Expenses$9.48B
Interest Expense$198.27M
Net Income$5.86B
EPS (Basic)$8.14
EPS (Diluted)$8.13
Shares Outstanding (Basic)719.77M
Shares Outstanding (Diluted)720.13M

Key Highlights

  • 1Total Revenues surged by 270% to $22.6 billion in 2021, driven by a significant increase in Investment Income (Loss).
  • 2Fee Related Earnings grew by 100% to $2.4 billion, supported by higher Fee Related Performance Revenues and Management Fees.
  • 3Total Assets Under Management increased by 42% to $880.9 billion, reflecting strong fundraising and market appreciation.
  • 4Fee-Earning Assets Under Management grew by 38% to $650.0 billion, indicating successful deployment of capital and asset growth.
  • 5Net Realizations increased by 75% to $873.3 million, demonstrating successful exits and performance from realized investments.
  • 6Blackstone maintained a strong financial position with $2.1 billion in Cash and Cash Equivalents at the end of 2021.
  • 7The company reported a substantial Net Income Attributable to Blackstone Inc. of $5.86 billion, a significant increase from $1.05 billion in 2020.

Frequently Asked Questions

Blackstone Inc. reported a strong financial performance in 2021. Total Revenues increased by 270% to $22.6 billion, driven primarily by a significant rebound in Investment Income (Loss), especially unrealized gains across Real Estate and Private Equity. Fee Related Earnings also saw substantial growth, doubling to $2.4 billion, supported by increases in Fee Related Performance Revenues and Management Fees. The company ended the year with $880.9 billion in Total Assets Under Management and a healthy liquidity position.

All four of Blackstone's segments—Real Estate, Private Equity, Hedge Fund Solutions, and Credit & Insurance—experienced growth in Segment Distributable Earnings in 2021. Real Estate and Private Equity showed particularly strong performance, with Segment Distributable Earnings increasing by 92% and 111%, respectively. Hedge Fund Solutions and Credit & Insurance also reported significant increases of 22% and 113%, respectively. This broad-based growth reflects the company's diversified investment strategies and favorable market conditions.

Blackstone's Assets Under Management continue to demonstrate robust growth. Total Assets Under Management increased by 42% to $880.9 billion, and Fee-Earning Assets Under Management grew by 38% to $650.0 billion. This expansion is driven by strong inflows from capital raised across various strategies and positive market activity, indicating continued investor confidence and successful capital deployment.

Blackstone's compensation philosophy emphasizes aligning employee interests with long-term fund and firm performance. For senior employees, compensation is heavily weighted towards annual cash bonuses, performance interests (carried interest and incentive fees), and deferred equity awards, with base salary being a smaller component. This 'at-risk' compensation structure, particularly the reliance on performance-based compensation and clawback provisions, aims to discourage excessive risk-taking. Named executive officers, including the CEO, President, CFO, and Chief Legal Officer, receive substantial portions of their compensation through these performance-based and equity awards, reflecting their contribution to the firm's success.