10-QPeriod: Q2 FY2014

Blackstone Inc. Quarterly Report for Q2 Ended Jun 30, 2014

Filed August 8, 2014For Securities:BX

Summary

Blackstone Inc. (BX) reported solid financial results for the six months ended June 30, 2014. Total revenues grew by 41% year-over-year to $3.8 billion, primarily driven by a significant 65% increase in Performance Fees, which benefited from strong market appreciation across Private Equity and Real Estate segments. Management and Advisory Fees also saw a healthy 12% increase, reflecting growth in Fee-Earning Assets Under Management. Expenses rose by 13%, largely due to increased compensation to support business growth and performance-based payouts. Net income attributable to The Blackstone Group L.P. more than doubled to $782.6 million for the six-month period. Assets Under Management (AUM) increased across all segments, reaching $278.9 billion, demonstrating continued expansion in the firm's global reach and investment capabilities. The company's liquidity remains strong, supported by substantial cash reserves and available credit facilities.

Financial Highlights

33 data points
Beta

Revenue

$2.26B

Net Income

$517.02M

22.9% Net Margin

EPS (Diluted)

$0.85

Total Assets

$30.06B

Cash & Equivalents

$1.22B

Free Cash Flow

$855.69M

Financial Statements
Beta
Revenue$2.26B
Operating Expenses$1.09B
Interest Expense$29.85M
Net Income$517.02M
EPS (Basic)$0.85
EPS (Diluted)$0.85
Shares Outstanding (Basic)606.69M
Shares Outstanding (Diluted)609.90M

Key Highlights

  • 1Total revenues increased by 41% to $3.8 billion for the six months ended June 30, 2014, compared to the same period in 2013.
  • 2Performance Fees surged by 65% to $2.17 billion for the first six months of 2014, driven by strong market appreciation in Private Equity and Real Estate funds.
  • 3Net income attributable to The Blackstone Group L.P. more than doubled, reaching $782.6 million for the six months ended June 30, 2014, compared to $378.8 million in the prior year.
  • 4Assets Under Management (AUM) grew to $278.9 billion as of June 30, 2014, reflecting successful fundraising and market appreciation across all segments.
  • 5Fee-Earning Assets Under Management (FEAUM) increased by 6% to $210 billion as of June 30, 2014, driven by inflows and market appreciation, particularly in the Credit and Hedge Fund Solutions segments.
  • 6Total operating expenses increased by 13% to $1.98 billion for the first six months of 2014, largely due to higher compensation and benefits to support business growth.
  • 7The company maintained a strong liquidity position with $1.2 billion in cash and cash equivalents as of June 30, 2014.

Frequently Asked Questions

Blackstone reported a significant increase in total revenues for the six months ended June 30, 2014, growing by 41% to $3.8 billion compared to $2.7 billion in the same period of 2013. This growth was primarily driven by a substantial increase in Performance Fees (up 65%) and a solid increase in Management and Advisory Fees (up 12%).

The significant increase in Performance Fees was primarily attributed to strong market appreciation across Blackstone's Private Equity and Real Estate segments. Specifically, the Private Equity segment benefited from strong performance in public holdings and private investments, while the Real Estate segment saw increased net appreciation in its BREP carry funds.

Blackstone's total Assets Under Management (AUM) increased by 5% to $278.9 billion as of June 30, 2014, compared to December 31, 2013. This growth was driven by inflows from fundraising across all segments (Private Equity, Real Estate, Hedge Fund Solutions, and Credit) and positive market appreciation, indicating continued expansion of the firm's investment capabilities.

Blackstone demonstrated strong financial health, with net income attributable to The Blackstone Group L.P. more than doubling to $782.6 million for the first six months of 2014. The company maintains a robust liquidity position, with $1.2 billion in cash and cash equivalents as of June 30, 2014, and healthy Fee Related Earnings and Distributable Earnings, supported by its diversified revenue streams and efficient cost management.