01—Abstract
Summary
Summary of the 8-K filed September 24, 2024. Cited figures are marked; the original filing is the authoritative source.
On September 24, 2024, Blackstone Inc. (BX) furnished an 8-K under Item 7.01 (Regulation FD) attaching a press release that provides a preliminary, intra-quarter estimate of realization-related revenue.
Blackstone expects to record total Realized Performance Revenues and total Realized Principal Investment Income in excess of $300 milliona for the period July 1, 2024 through September 24, 2024. Per the release, roughly 85% of that amount is Realized Performance Revenues and roughly 15% is Realized Principal Investment Income. The estimate reflects investment realizations closed to date in the third quarter, certain non-fee-related incentive fees, and other investment income expected to be realized at quarter end.
For investors, the key takeaway is that the disclosure is a partial, backward-looking snapshot rather than a forecast. Blackstone explicitly states the figure does not predict total Realized Performance Revenues, total Realized Principal Investment Income, or total Segment Revenues for the quarter ending September 30, 2024, and that full-quarter results may differ materially. It also excludes fee income and expenses, and it is not indicative of results for the year ending December 31, 2024.
Investors should therefore read the $300 millionb figure as a signal of realization momentum in the third quarter, not as a complete measure of quarterly earnings. The filing is largely a pre-announcement of realization activity that Blackstone chose to disclose ahead of its scheduled earnings release, which is consistent with its practice of providing intra-quarter updates on performance-related revenue. The 8-K itself notes the information is furnished rather than filed for purposes of Section 18 of the Exchange Act, and the forward-looking statements caveat points investors to the risk factors in Blackstone's 2023 Form 10-K and to significant market developments occurring after September 24, 2024.
02—Key points
Key Highlights
- Blackstone preliminarily expects Realized Performance Revenues and Realized Principal Investment Income of more than $300 million for July 1 to September 24, 2024.
- The estimate is composed of approximately 85% Realized Performance Revenues and approximately 15% Realized Principal Investment Income.
- The figure covers realizations closed to date in Q3 2024, certain non-fee-related incentive fees, and other investment income expected to be realized at quarter end.
- The estimate is explicitly not a prediction of full Q3 2024 Realized Performance Revenues, Realized Principal Investment Income, or Segment Revenues, and full-quarter results may differ materially.
- The estimate excludes fee income and expenses, so it does not represent total segment or net income for the period.
- The announcement is not indicative of results for the year ending December 31, 2024.
- The information was furnished under Item 7.01 (Regulation FD) and is not deemed filed under Section 18 of the Exchange Act.
03—Questions
Frequently Asked Questions
What exactly did Blackstone disclose in this 8-K?
Blackstone furnished a press release (Exhibit 99.1) providing a preliminary estimate that it expects to record more than $300 million in total Realized Performance Revenues and total Realized Principal Investment Income for the period from July 1, 2024 to September 24, 2024. The estimate is roughly 85% performance revenues and 15% principal investment income.
Does the $300 million figure represent Blackstone's full Q3 2024 results?
No. Blackstone states the estimate does not predict total realized performance revenues, total realized principal investment income, or total segment revenues for the quarter ending September 30, 2024. It covers only realizations through September 24 plus certain items expected at quarter end, and full-quarter results may differ materially.
What is excluded from this preliminary estimate?
The estimate does not include fee income or expenses, nor any other sources of income. Blackstone also notes it may realize further gains or losses on realized performance revenues and realized principal investment income before quarter end.
Can investors use this estimate to project Blackstone's 2024 annual results?
No. Blackstone explicitly states the preliminary estimate is not indicative of results that may be expected for any other period, including the year ending December 31, 2024. Investors should rely on subsequent periodic filings and the company's quarterly earnings release for complete results.
What risks should investors consider in relation to this disclosure?
The forward-looking statements caveat points to risk factors described in Blackstone's 2023 Form 10-K, as updated in later filings, and to significant market developments occurring after September 24, 2024. Realization activity depends on market conditions for exits and sales of portfolio investments, which can change quickly and affect the final quarter-end figures.
04—Continue