10-QPeriod: Q3 FY2021

Blackstone Inc. Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 4, 2021For Securities:BX

Summary

Blackstone Inc.'s (BX) third quarter 2021 filing demonstrates robust performance, driven by significant increases in investment income and a substantial growth in assets under management across its key segments. Total revenues surged by 105% year-over-year to $6.2 billion, largely due to a 123% increase in investment income, reflecting strong realized and unrealized gains in both private equity and real estate. This strong revenue growth was accompanied by a significant increase in expenses, primarily in compensation and benefits, directly linked to higher performance allocations and incentive fees earned. Despite increased expenses, net income attributable to Blackstone Inc. more than doubled year-over-year to $1.4 billion, showcasing effective operational leverage. The company also highlighted substantial growth in fee-earning assets under management, reaching $528.4 billion, an increase of 6% from the previous quarter and 13% year-over-year, underscoring the continued expansion of its asset management franchise.

Financial Highlights

39 data points
Beta

Revenue

$6.22B

Net Income

$1.40B

22.5% Net Margin

EPS (Diluted)

$1.94

Total Assets

$39.04B

Cash & Equivalents

$5.01B

Free Cash Flow

$1.59B

Financial Statements
Beta
Revenue$6.22B
Operating Expenses$2.65B
Interest Expense$52.41M
Net Income$1.40B
EPS (Basic)$1.94
EPS (Diluted)$1.94
Shares Outstanding (Basic)722.23M
Shares Outstanding (Diluted)722.43M

Key Highlights

  • 1Total revenues grew by 105% year-over-year to $6.2 billion for the third quarter of 2021.
  • 2Investment income surged by 123% year-over-year to $4.8 billion, driven by strong realized and unrealized gains across segments, particularly in Real Estate and Private Equity.
  • 3Net income attributable to Blackstone Inc. more than doubled year-over-year to $1.4 billion for the third quarter.
  • 4Fee-earning assets under management increased by 6% quarter-over-quarter to $528.4 billion, demonstrating continued franchise growth.
  • 5The company maintained a strong liquidity position, with $5.0 billion in cash and cash equivalents as of September 30, 2021.
  • 6Blackstone repurchased approximately 2.9 million shares of common stock for $355.9 million during the third quarter, reflecting capital return to shareholders.

Frequently Asked Questions

Blackstone's revenue saw a substantial increase of 105% year-over-year, reaching $6.2 billion. This growth was primarily fueled by a 123% surge in investment income, driven by strong realized and unrealized gains in its Private Equity and Real Estate segments. Favorable market conditions and successful investment strategies contributed to these gains.

Total expenses increased by 99% year-over-year to $2.7 billion, largely due to a significant rise in compensation and benefits, which increased by $1.3 billion. This increase was mainly driven by performance allocations compensation, directly reflecting the higher investment income earned. Despite the rise in expenses, Blackstone's net income attributable to Blackstone Inc. more than doubled to $1.4 billion, demonstrating strong operational performance.

Blackstone continued to experience growth in its Assets Under Management. Fee-earning assets under management grew by 6% sequentially to $528.4 billion and by 13% year-over-year. Total assets under management also increased significantly, reaching $730.7 billion as of September 30, 2021, up from $684.0 billion at the end of the previous quarter. This growth reflects successful fundraising and positive market activity.

Blackstone maintained a strong liquidity position, with $5.0 billion in cash and cash equivalents as of September 30, 2021. The company had $7.6 billion in borrowings from its senior notes issuance and no outstanding borrowings under its revolving credit facility. This robust liquidity, combined with healthy operating cash flows, supports its capital needs for business growth, investments, and shareholder returns.