Blackstone Inc. Quarterly Report for Q3 Ended Sep 30, 2016

Summary

Blackstone Inc. (BX) reported its quarterly results for the period ending September 29, 2016. Total Revenues increased significantly year-over-year, primarily driven by a substantial recovery in Performance Fees, which swung from a net loss in the prior year's period to a significant gain, largely due to improved performance in Private Equity and Real Estate segments. Investment Income also saw a notable increase, contributing to the overall revenue growth. However, Management and Advisory Fees, Net, experienced a decline, partly due to the spin-off of the Financial Advisory segment. Expenses increased year-over-year, primarily driven by higher Performance Fee Compensation related to the surge in Performance Fees. Despite the increase in expenses, Net Income Attributable to The Blackstone Group L.P. showed a substantial positive swing, reflecting the strong revenue recovery. Total Assets grew to $24.41 billion from $22.53 billion at the end of the previous year, with a notable increase in Investments. Total Liabilities also increased, largely due to higher Loans Payable, reflecting expanded borrowing or fund-level financing. The company's Fee-Earning Assets Under Management and Total Assets Under Management showed positive growth across segments, indicating continued asset gathering. The company also refinanced and increased its credit facility, demonstrating ongoing financial flexibility.

Key Highlights

• 1Total Revenues surged to $1.43 billion for the three months ended September 30, 2016, a significant increase from $11.6 million in the prior year's period, driven by strong Performance Fees and Investment Income.
• 2Performance Fees turned positive, reaching $671 million, a substantial swing from a $(638.1) million loss in the prior year's period, reflecting improved investment performance.
• 3Net Income Attributable to The Blackstone Group L.P. was $312.9 million, a significant turnaround from a net loss of $(254.7) million in the prior year's period.
• 4Total Assets increased to $24.41 billion as of September 30, 2016, up from $22.53 billion as of December 31, 2015.
• 5Fee-Earning Assets Under Management grew to $267.8 billion as of September 30, 2016, up from $240.9 billion at the end of 2015.
• 6Blackstone amended and extended its revolving credit facility, increasing its capacity to $1.5 billion.
• 7On October 5, 2016, post-quarter, Blackstone issued €600 million in senior notes maturing in 2026.

Frequently Asked Questions