10-QPeriod: Q1 FY2015

Blackstone Inc. Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 8, 2015For Securities:BX

Summary

Blackstone Inc. (BX) reported strong financial performance for the quarter ended March 31, 2015, with total revenues reaching $2.5 billion, a significant 63% increase year-over-year. This growth was largely driven by a substantial surge in Performance Fees, up 116% to $1.7 billion, primarily fueled by strong appreciation in its Private Equity and Real Estate segments. The company's net income also saw a substantial increase, more than doubling to $1.48 billion, with net income attributable to The Blackstone Group L.P. rising by 137% to $629 million. Despite increased compensation expenses, up 33% to $963 million, reflecting the performance-driven nature of its compensation structure and business growth, Blackstone demonstrated robust profitability and effective expense management. Key operational metrics also showed positive trends, with Fee-Earning Assets Under Management increasing to $223.5 billion and Total Assets Under Management reaching $310.5 billion, indicating continued growth in assets managed across its various segments. The company maintained a strong liquidity position with $1.1 billion in cash and cash equivalents and significant investments in liquid assets. Distributions to common unitholders were also strong, reflecting the company's commitment to returning capital to shareholders.

Financial Highlights

33 data points
Beta

Revenue

$2.51B

Net Income

$629.45M

25.1% Net Margin

EPS (Diluted)

$1.00

Total Assets

$32.41B

Cash & Equivalents

$1.14B

Free Cash Flow

$476.01M

Financial Statements
Beta
Revenue$2.51B
Operating Expenses$1.14B
Interest Expense$31.37M
Net Income$629.45M
EPS (Basic)$1.01
EPS (Diluted)$1.00
Shares Outstanding (Basic)625.28M
Shares Outstanding (Diluted)631.23M

Key Highlights

  • 1Total Revenues surged by 63% to $2.5 billion, driven by a significant increase in Performance Fees.
  • 2Performance Fees grew by 116% to $1.7 billion, primarily due to strong appreciation in Private Equity and Real Estate investments.
  • 3Net Income increased by 127% to $1.48 billion, reflecting the strong revenue growth.
  • 4Net Income Attributable to The Blackstone Group L.P. rose by 137% to $629 million.
  • 5Fee-Earning Assets Under Management increased by 3% to $223.5 billion.
  • 6Total Assets Under Management grew by 7% to $310.5 billion.
  • 7Distributions to common unitholders for Q1 2015 were $0.89 per common unit.

Frequently Asked Questions

The primary driver of Blackstone's revenue growth in the first quarter of 2015 was a significant increase in Performance Fees, which rose by 116% to $1.7 billion. This surge was primarily attributed to strong investment appreciation in the Private Equity and Real Estate segments.

Blackstone's total compensation and benefits expenses increased by 33% to $963 million in the first quarter of 2015 compared to the same period in 2014. This increase reflects the growth of the business, higher headcount, and a significant portion of compensation being performance-based, aligning with the strong revenue growth experienced.

Blackstone maintained a strong liquidity position as of March 31, 2015, with $1.1 billion in cash and cash equivalents, supplemented by significant investments in its Treasury Cash Management Strategies and liquid Blackstone Funds, totaling approximately $2.9 billion in liquid assets. The company also has access to a $1.1 billion revolving credit facility.

Blackstone experienced growth in its managed assets. Fee-Earning Assets Under Management increased by 3% to $223.5 billion, and Total Assets Under Management grew by 7% to $310.5 billion as of March 31, 2015, compared to year-end 2014. This growth reflects successful fundraising efforts and market appreciation across its segments.