How did Blackstone's core earnings metric (Fee Related Earnings) perform this quarter?

Fee Related Earnings were $1.1 billion ($0.91 per share) in Q2 2024, down 3% from the prior-year quarter, though up 4% year-to-date. Management and advisory fees grew 5% for the quarter, but higher other operating expenses (up 14%) offset that growth. Investors should watch whether expense growth moderates in coming quarters.

Why did GAAP net income fall even though fundraising and AUM grew?

GAAP net income attributable to Blackstone Inc. dropped 27% to $444 million, largely because of swings in unrealized performance allocations and principal investment results, which are volatile and non-cash in nature. Distributable Earnings, which exclude unrealized activity, rose 3% to $1.3 billion, so the GAAP decline mainly reflects mark-to-market timing rather than weaker realized cash earnings.

Is the dividend safe, and how much was returned to shareholders?

The board declared a $0.82 quarterly dividend, up from $0.79 a year earlier, and it represents about 85% of Blackstone Inc.'s share of Distributable Earnings under its stated policy. Blackstone returned about $1.3 billion to shareholders with respect to Q2 and $4.9 billion over the LTM through dividends and buybacks. Dividend payments remain at the board's discretion and could be changed under the company's policy.

What drove the increase in Net Accrued Performance Revenues?

Net Accrued Performance Revenues rose quarter-over-quarter by about $519 million (2% growth) to $6.2 billion, reflecting appreciation across strategies. Private Equity contributed the largest increase, and Credit & Insurance and Multi-Asset Investing also grew. Because these revenues are unrealized, they can reverse if fund values decline, so they represent future potential rather than cash already received.

Are these results audited, and does the filing change guidance?

The figures are preliminary and unaudited, and the presentation is furnished under Item 2.02 rather than filed, so it is not incorporated into SEC filings for liability purposes. The filing does not include formal guidance changes. Investors should review the forward-looking statements and risk factors in Blackstone's 2023 Form 10-K for the factors that could cause actual results to differ.

BX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 18, 2024. Cited figures are marked; the original filing is the authoritative source.

Blackstone (BX) reported second quarter 2024 results on July 18, 2024, with GAAP net income of $948 million^a for the quarter ($444 million attributable to Blackstone Inc.) and $2.5 billion year-to-date.

The headline operating story was strong capital activity: $39.4 billion^b of inflows in the quarter (about $151.5 billion over the LTM), $33.7 billion deployed (the highest investment activity in two years, per management), and total AUM of $1,076.4 billion, up 7% year-over-year. Fee-Earning AUM rose 11% to $808.7 billion, and Perpetual Capital AUM reached $418.6 billion, up 9%. Management's fee-related economics were softer, however: Fee Related Earnings were $1.1 billion ($0.91/share), down 3% year-over-year, while Distributable Earnings rose 3% to $1.3 billion ($0.96/share), supported by higher realized performance revenues.

The balance sheet and shareholder return picture is solid. Net Accrued Performance Revenues climbed to $6.2 billion^c ($5.08/share), driven by appreciation across strategies, with the Infrastructure, Private Credit, and Corporate Private Equity funds posting the strongest returns. Blackstone ended the quarter with $8.7 billion in cash and corporate treasury investments and $17.7 billion of cash and net investments ($14.44/share), against $10.7 billion of debt at par.

The board declared a $0.82^d quarterly dividend (payable August 5, 2024, record date July 29), up from $0.79 a year earlier, and raised the share repurchase authorization to $2.0 billion. Investors should note that GAAP net income attributable to Blackstone fell 27% year-over-year to $444 million, mainly because of lower principal investment gains and a shift in performance allocations. These figures are preliminary and unaudited.

The 8-K furnishes the press release and investor presentation under Item 2.02 and does not represent a formal change in guidance or a material corporate event. Investors should weigh the strong fundraising and deployment momentum, and the growth in performance-driven earnings, against the modest decline in FRE and the volatility inherent in GAAP results tied to unrealized performance revenues.

02—Key points

Key Highlights

Total AUM reached $1,076.4 billion (up 7% YoY), with Fee-Earning AUM of $808.7 billion (up 11% YoY) and Perpetual Capital AUM of $418.6 billion (up 9% YoY).
Inflows of $39.4 billion in the quarter and $151.5 billion over the LTM; capital deployed of $33.7 billion in the quarter, described as the highest investment activity in two years.
Fee Related Earnings of $1.1 billion ($0.91/share) for the quarter, down 3% YoY; Distributable Earnings of $1.3 billion ($0.96/share), up 3% YoY.
GAAP net income attributable to Blackstone Inc. was $444 million for the quarter (down 27% YoY), or $1.3 billion year-to-date.
Net Accrued Performance Revenues rose to $6.2 billion ($5.08/share), supported by strong appreciation in Infrastructure (6.3% in the quarter), Private Credit (4.2% gross), and Corporate Private Equity (2.0%).
Quarterly dividend of $0.82 per share (payable August 5, 2024), up from $0.79 a year earlier; share repurchase authorization increased to $2.0 billion.
Liquidity of $8.7 billion in cash and corporate treasury investments, $17.7 billion in cash and net investments ($14.44/share), and a $4.3 billion revolver with A+/A+ ratings.

03—Questions

Frequently Asked Questions

How did Blackstone's core earnings metric (Fee Related Earnings) perform this quarter?
Fee Related Earnings were $1.1 billion ($0.91 per share) in Q2 2024, down 3% from the prior-year quarter, though up 4% year-to-date. Management and advisory fees grew 5% for the quarter, but higher other operating expenses (up 14%) offset that growth. Investors should watch whether expense growth moderates in coming quarters.
Why did GAAP net income fall even though fundraising and AUM grew?
GAAP net income attributable to Blackstone Inc. dropped 27% to $444 million, largely because of swings in unrealized performance allocations and principal investment results, which are volatile and non-cash in nature. Distributable Earnings, which exclude unrealized activity, rose 3% to $1.3 billion, so the GAAP decline mainly reflects mark-to-market timing rather than weaker realized cash earnings.
Is the dividend safe, and how much was returned to shareholders?
The board declared a $0.82 quarterly dividend, up from $0.79 a year earlier, and it represents about 85% of Blackstone Inc.'s share of Distributable Earnings under its stated policy. Blackstone returned about $1.3 billion to shareholders with respect to Q2 and $4.9 billion over the LTM through dividends and buybacks. Dividend payments remain at the board's discretion and could be changed under the company's policy.
What drove the increase in Net Accrued Performance Revenues?
Net Accrued Performance Revenues rose quarter-over-quarter by about $519 million (2% growth) to $6.2 billion, reflecting appreciation across strategies. Private Equity contributed the largest increase, and Credit & Insurance and Multi-Asset Investing also grew. Because these revenues are unrealized, they can reverse if fund values decline, so they represent future potential rather than cash already received.
Are these results audited, and does the filing change guidance?
The figures are preliminary and unaudited, and the presentation is furnished under Item 2.02 rather than filed, so it is not incorporated into SEC filings for liability purposes. The filing does not include formal guidance changes. Investors should review the forward-looking statements and risk factors in Blackstone's 2023 Form 10-K for the factors that could cause actual results to differ.

04—Continue

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