Blackstone Inc. Quarterly Report for Q2 Ended Jun 30, 2012

Summary

Blackstone Inc. (BX) reported its quarterly results for the period ending June 29, 2012, filed on August 6, 2012. The company's financial performance showed a significant year-over-year decline in total revenues, primarily driven by a sharp decrease in Performance Fees and Investment Income (Loss). This was largely attributed to market volatility and global economic uncertainties impacting the value of the company's investments. Despite the revenue challenges, total expenses also decreased, mainly due to lower compensation and benefits, particularly reduced equity compensation costs. Blackstone continues to grow its Assets Under Management across its segments, with the Credit Businesses and Real Estate segments showing notable increases in Fee-Earning Assets Under Management.

Key Highlights

• 1Total Revenues declined by 52% year-over-year for the quarter, primarily due to a 80% decrease in Performance Fees.
• 2Investment Income (Loss) saw a significant decrease of 103% year-over-year for the quarter, reflecting market volatility.
• 3Total Expenses decreased by 25% year-over-year for the quarter, driven by a 32% reduction in Compensation and Benefits.
• 4Fee-Earning Assets Under Management (FEAUM) increased by 15% year-over-year to $157.6 billion, with strong growth in Real Estate and Credit Businesses segments.
• 5Assets Under Management (AUM) increased by 14% year-over-year to $190.3 billion, showing continued growth in the firm's managed capital.
• 6The company's Private Equity segment reported a negative Economic Income of $(65.1) million for the quarter, a significant decline from the prior year's positive $(275.3) million.
• 7Blackstone amended its revolving credit facility, increasing borrowing capacity to $1.1 billion and extending the maturity date to July 2017.

Frequently Asked Questions