Early Access

10-QPeriod: Q3 FY2014

Blackstone Inc. Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 6, 2014For Securities:BX

Summary

Blackstone Inc. (BX) reported solid financial performance for the nine months ended September 30, 2014, with total revenues increasing by 40% year-over-year to $5.5 billion. This growth was primarily driven by a significant surge in Performance Fees, up 64% to $3.1 billion, largely attributed to strong returns in their Private Equity and Real Estate segments. Management and Advisory Fees also saw a healthy increase of 15%, reaching $1.8 billion, reflecting growth across their key business segments. The company's total assets grew to $30.5 billion, while total liabilities decreased to $14.1 billion, demonstrating improved financial leverage. Blackstone's Fee Related Earnings (FRE) and Distributable Earnings also showed positive trends, underscoring the recurring nature of their fee-based income and effective management of operating expenses. Despite strong revenue growth, expenses also increased by 20% to $3.0 billion, primarily driven by higher compensation and benefits costs, which were largely a consequence of increased performance-based compensation linked to higher revenues and strategic headcount additions. The company maintained robust fee-earning assets under management, reaching $214.8 billion, indicating continued investor confidence. Overall, the report highlights Blackstone's ability to generate substantial performance-based revenue in favorable market conditions while managing its operational costs effectively.

Financial Statements
Beta
Revenue$1.68B
Operating Expenses$1.06B
Interest Expense$31.61M
Net Income$250.50M
EPS (Basic)$0.41
EPS (Diluted)$0.41
Shares Outstanding (Basic)611.68M
Shares Outstanding (Diluted)614.98M

Key Highlights

  • 1Total revenues increased by 40% to $5.5 billion for the nine months ended September 30, 2014, compared to the same period in 2013.
  • 2Performance Fees saw a significant 64% increase to $3.1 billion, driven by strong returns in Private Equity and Real Estate segments.
  • 3Management and Advisory Fees, Net, grew by 15% to $1.8 billion, reflecting broad-based growth across business segments.
  • 4Total assets increased to $30.5 billion, while total liabilities decreased to $14.1 billion, improving the company's balance sheet.
  • 5Fee-Earning Assets Under Management grew to $214.8 billion, indicating strong investor demand and effective capital deployment.
  • 6Net Income Attributable to The Blackstone Group L.P. more than doubled to $1.03 billion for the nine months ended September 30, 2014.
  • 7Distributions declared per common unit increased significantly to $1.48 for the nine months ended September 30, 2014, up from $0.95 in the prior year.

Frequently Asked Questions