01—Abstract
Summary
Summary of the 10-K filed February 25, 2022. Cited figures are marked; the original filing is the authoritative source.
Blackstone Inc. reported a significant increase in total revenues for the year ended December 31, 2021, reaching $22.6 billiona, 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 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Total Revenues surged by 270% to $22.6 billion in 2021, driven by a significant increase in Investment Income (Loss).
- Fee Related Earnings grew by 100% to $2.4 billion, supported by higher Fee Related Performance Revenues and Management Fees.
- Total Assets Under Management increased by 42% to $880.9 billion, reflecting strong fundraising and market appreciation.
- Fee-Earning Assets Under Management grew by 38% to $650.0 billion, indicating successful deployment of capital and asset growth.
- Net Realizations increased by 75% to $873.3 million, demonstrating successful exits and performance from realized investments.
- Blackstone maintained a strong financial position with $2.1 billion in Cash and Cash Equivalents at the end of 2021.
- The company reported a substantial Net Income Attributable to Blackstone Inc. of $5.86 billion, a significant increase from $1.05 billion in 2020.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 25, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $22.58B$6.10B | +270.0% |
| Operating Expenses | $9.48B$3.48B | +172.4% |
| Interest Expense | $198.27M$166.16M | +19.3% |
| Net Income | $5.86B$1.05B | +460.3% |
| EPS (Basic) | $8.14$1.50 | +442.7% |
| EPS (Diluted) | $8.13$1.50 | +442.0% |
| Shares Outstanding (Basic) | 719.77M696.93M | +3.3% |
| Shares Outstanding (Diluted) | 720.13M697.26M | +3.3% |
05—Questions
Frequently Asked Questions
What was Blackstone's overall financial performance in 2021?
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.
How did Blackstone's different business segments perform?
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.
What is the outlook for Blackstone's Assets Under Management (AUM)?
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.
How does Blackstone manage its compensation structure, and what is the impact on named executive officers?
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.
06—Continue