Early Access

10-QPeriod: Q1 FY2011

Blackstone Inc. Quarterly Report for Q1 Ended Mar 31, 2011

Filed May 6, 2011For Securities:BX

Summary

Blackstone Inc. (BX) reported strong revenue growth in the first quarter of 2011, with total revenues increasing by 64% year-over-year to $1.15 billion. This surge was primarily driven by a significant increase in Performance Fees, up 228%, reflecting improved operating performance across its real estate, credit, and private equity segments. Management and Advisory Fees also saw a healthy increase of 16%. Despite a slight increase in operating expenses, largely due to higher general, administrative, and other costs, Blackstone achieved a substantial turnaround from the prior year's net loss, reporting a net income of $78.4 million for the quarter. This performance was bolstered by strong fee-earning assets under management growth across all segments, particularly in Private Equity and Hedge Fund Solutions, signaling robust client demand and effective asset growth strategies.

Financial Statements
Beta
Revenue$1.15B
Operating Expenses$990.86M
Interest Expense$13.80M
Net Income$42.70M
EPS (Basic)$0.10
EPS (Diluted)$0.09
Shares Outstanding (Basic)447.74M
Shares Outstanding (Diluted)457.65M

Key Highlights

  • 1Total Revenues surged by 64% to $1.15 billion, driven by a 228% increase in Performance Fees and a 16% rise in Management and Advisory Fees.
  • 2Blackstone returned to profitability with a Net Income of $78.4 million, a significant improvement from a net loss in the prior year period.
  • 3Fee-Earning Assets Under Management grew by 13% to $124.0 billion, indicating strong client inflows and positive market appreciation.
  • 4Assets Under Management increased by 17% to $150.0 billion, demonstrating continued expansion in managed capital.
  • 5The Private Equity segment saw a 50% increase in Assets Under Management, largely due to the commencement of the BCP VI investment period.
  • 6The Real Estate segment experienced a 60% increase in Assets Under Management, driven by market appreciation and new platform management.
  • 7Despite an increase in operating expenses, the company effectively managed its cost structure, leading to a 10% decrease in total expenses year-over-year.

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