Americas

EMEA

Asia-Pacific

Total Revenue

3f0ffcac7bfd5c6bfe3cf3939abfcba02006746ebfa6a03b266a6fb5e7554b4c

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

9e3739695b1eb2bbe1866c1fe8dc1dff0ba0f2704a21b51168b660a4127656bc

| Metric [Unit: $ million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Real Estate Segment**  | N/A     | **715.5**  **[0001193125-23-137073_d480850d10q.htm:89]**  | N/A     | **847.5**  **[0001193125-23-258911_d515078dex991.htm:5]**  | N/A     | N/A     | **819**  **[0001193125-24-180721_d25511dex991.htm:5]**  | **852.4**  **[0001193125-24-238418_d844809dex991.htm:5]**  |
| **Private Equity Segment** | N/A   | **465.1**  **[0001193125-23-137073_d480850d10q.htm:92]**  | N/A     | **476.8**  **[0001193125-23-270358_d547912d10q.htm:109]**  | N/A     | N/A     | N/A     | **552.8**  **[0001193125-24-249809_d896208d10q.htm:112]**  |
| **Credit & Insurance Segment** | N/A | **334.1**  **[0001193125-23-137073_d480850d10q.htm:54]**  | N/A     | **343.3**  **[0001193125-23-270358_d547912d10q.htm:114]**  | N/A     | N/A     | N/A     | **418.0**  **[0001193125-24-249809_d896208d10q.htm:117]**  |
| **Hedge Fund Solutions Segment** | N/A | **137.7**  **[0001193125-23-137073_d480850d10q.htm:100]**  | N/A     | **133.1**  **[0001193125-23-270358_d547912d10q.htm:118]**  | N/A     | N/A     | N/A     | N/A     |
| **Multi-Asset Investing Segment** | N/A | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | **120.3**  **[0001193125-24-249809_d896208d10q.htm:121]**  |
| **Total Segment Revenues** | **2,342.4**  **[0001193125-23-015663_d453228dex991.htm:3]**  | **2,485.8**  **[0001193125-23-137073_d480850d10q.htm:56]**  | N/A     | N/A     | **2,535.2**  **[0001193125-24-014831_d701698dex991.htm:3]**  | **2,549.4**  **[0001193125-24-099867_d781420dex991.htm:2]**  | **2,796**  **[0001193125-24-180721_d25511dex991.htm:22]**  | **2,433.9**  **[0001193125-24-238418_d844809dex991.htm:9]**  |

8785f94dc9f73092ae257be4690e1f0031a6ad84c53cb2ee0ec464d9a715f2b5

- **Strong recovery prospects in the real estate market**, driven by a **healthy U.S. economy** and a significant decline in new supply starts from over **3% in 2022 to about 1%**, a **two-thirds decline**, which is expected to improve cash flows and asset values. Additionally, **borrowing costs have decreased from 9% to 6%**, and capital availability has improved, with **CMBS issuance up threefold**, indicating a favorable environment for real estate investments.  **[BX_3413745_9]**
- **Improving conditions for private equity exits**, with the **IPO pipeline doubling from a year ago** and the **S&P 500 index up 60%**, suggesting a strong equity market. The **debt markets have improved**, with investment-grade and high-yield spreads at record tights, and a better regulatory climate for M&A is leading to increased activity. This sets the stage for a **very positive M&A cycle**, which could enhance Blackstone’s realizations and earnings.  **[BX_3413745_10]**
- **Significant growth potential in the private wealth channel**, as Blackstone has made **enormous early investments** in this area, building a dedicated team of **more than 300 people**. With an estimated **$90 trillion in wealth** held by individuals with over **$1 million in savings**, and currently only **1% allocated to private assets** (versus **30% for institutional partners**), there is substantial opportunity for growth. Blackstone’s strong brand, differentiated products, and track record position it to capitalize on this untapped market.  **[BX_3413745_25]**

5733b72f846f678db6fe20abcae1703032fc88ba46834882cfec3aaaaaf35077

- The firm's exceptional fourth-quarter results were significantly driven by **one-time crystallization events**, particularly in the infrastructure business (**BIP**), which may **not recur in future periods**, potentially leading to declines in fee-related earnings.  **[BX_3413745_6]**
- The real estate portfolio experienced declines due to an **80 basis point increase in the 10-year treasury yield** and the **stronger U.S. dollar**, with the recovery taking longer than expected. This may continue to impact the firm's performance and **delay realizations** in this segment.  **[BX_3413745_5]** ,  **[BX_3413745_10]** ,  **[BX_3413745_9]**
- **Uncertainty in the interest rate outlook**, with potential for **higher rates**, could negatively impact **private equity activity** and **real estate performance** in 2025.  **[BX_3413745_24]**

c678643e678da868b9efa9eb24fd1d48926dd9469c46149c66bfee3ec4d95f9a

1. **Real Estate Recovery Outlook**  
   **Q:** How do you see real estate recovery ramping in 2025?  
   **A:** Jonathan Gray explained that the conditions for real estate recovery are improving due to strong demand from a healthy U.S. economy, leading to demand for logistics, apartments, and hotels.  **[BX_3413745_9]**  Supply has declined significantly, with new supply starts dropping from over **3%** in 2022 to **1%**, a **two-thirds decline**, which is very helpful.  **[BX_3413745_9]**  Borrowing costs have improved, with overall costs dropping from **9%** to **6%**, and spreads have tightened.  **[BX_3413745_9]**  He believes that cash flows will be strong and that the combination of favorable cash flows and a more stable rate environment puts real estate firmly on a recovery path.  **[BX_3413745_9]** 

2. **Private Equity and Real Estate Cycles**  
   **Q:** When will you become a net seller in corporate private equity?  
   **A:** Jonathan Gray noted that the environment is improving with a strong economy, the S&P being up **60%**, a doubling of the IPO pipeline, and improved debt markets.  **[BX_3413745_10]**  He expects a very positive M&A cycle, with private equity seeing realizations earlier than real estate.  **[BX_3413745_10]**  He anticipates they will start monetizing private equity assets sooner, while the real estate cycle lags and will see more activity in the back half of the year.  **[BX_3413745_10]** 

3. **AI and Data Center Investments**  
   **Q:** How attractive is data center infrastructure given new AI developments?  
   **A:** Jonathan Gray acknowledged recent developments like Deep Seek that suggest AI models may become less capital and energy intensive.  **[BX_3413745_11]**  However, he emphasized that they have long-term leased data centers with major companies and do not build speculatively.  **[BX_3413745_11]**  He believes that as the cost of compute comes down, usage and adoption will increase, leading to continued strong demand for data centers.  **[BX_3413745_11]**  Comments from Meta and Microsoft highlight the importance of physical infrastructure.  **[BX_3413745_11]**  They expect data centers and power to remain vital, with any changes in usage being carefully managed based on demand signals from tenants.  **[BX_3413745_11]** 

4. **BREIT Flows and Performance**  
   **Q:** What catalysts could increase retail allocations into BREIT?  
   **A:** Jonathan Gray stated that BREIT's future growth is tied to performance.  **[BX_3413745_20]**  They've navigated a challenging period, providing liquidity to customers for the past **11 months** and seeing a **97% decline** in net redemptions.  **[BX_3413745_20]**  Customers are waiting to see a few months of positive NAV growth before increasing allocations.  **[BX_3413745_20]**  As rates settle and cash flows grow, he believes BREIT will again become a growth vehicle, given the strong customer experience and confidence in Blackstone Real Estate.  **[BX_3413745_20]** 

5. **Interest Rate Outlook**  
   **Q:** How might rates and inflation impact PE and real estate in 2025?  
   **A:** Jonathan Gray noted that predicting interest rates is challenging, but their confidence comes from portfolio data showing disinflation.  **[BX_3413745_24]**  As major owners of rental housing, they see shelter inflation closer to **1%** versus the Fed's **4.6%**, suggesting that official data is catching up.  **[BX_3413745_24]**  The labor market appears balanced, with the easiest hiring conditions since the post-COVID period and hourly wage growth at **3.7%**, the lowest level.  **[BX_3413745_24]**  He believes the Fed has the luxury of being patient and that continued disinflation will generally be supportive, albeit at a slower pace.  **[BX_3413745_24]** 

6. **Insurance Partnerships Growth**  
   **Q:** What is the outlook for growth with insurance partnerships?  
   **A:** Jonathan Gray highlighted that insurers are increasingly moving assets into private investment-grade credit, viewing it as a necessity rather than a novelty.  **[BX_3413745_14]**  Blackstone's insurance AUM is up nearly **20%**, reaching **$230 billion**.  **[BX_3413745_14]**  They see accelerating conversations and partnerships, benefiting from an open architecture model where they serve as a trusted third-party manager.  **[BX_3413745_14]**  With **23** SMA clients, up **3%** from last quarter, and strategic clients showing strong appreciation, they expect significant growth ahead, including opportunities in Asia with partners like Nippon Life.  **[BX_3413745_14]** 

7. **Credit Deployment Expectations**  
   **Q:** How much capital is not yet earning fees in credit, and what's the deployment outlook?  
   **A:** Jonathan Gray expects investment pace in credit to grow with incoming capital, especially as they expand into asset-based areas and partner with banks looking to optimize their balance sheets.  **[BX_3413745_15]**  They foresee more corporate solutions transactions, like the **$3.5 billion** EQT deal.  **[BX_3413745_15]**  Michael Chae added that out of **$375 billion** in total AUM, **$265 billion** is fee-earning, with about **$40 billion** not yet earning management fees but eligible, plus another **$9 billion** in the real estate BREDS business.  **[BX_3413745_15]** 

8. **Big 4 Insurance Relationships**  
   **Q:** How will Nippon Life's acquisition impact your insurance flows?  
   **A:** Michael Chae reported that they had **$156 billion** of AUM from the Big 4 insurance relationships at the end of '24.  **[BX_3413745_19]**  Jonathan Gray stated that they've been allocated more capital than contractually required, with strong relationships with CoreBridge, Resolution, Fidelity Guaranty, and Everlake.  **[BX_3413745_19]**  The acquisition of Resolution by Nippon Life is seen positively, bringing additional capital and expertise.  **[BX_3413745_19]**  They will continue as dedicated asset managers for these partners and expect accelerating growth.  **[BX_3413745_19]** 

9. **Perpetual Products Growth**  
   **Q:** How might your distribution evolve for perpetual products over five years?  
   **A:** Jonathan Gray expressed significant optimism for substantial growth in perpetual products.  **[BX_3413745_25]**  They've invested heavily in this area for almost **15 years**, with over **300** people dedicated to private wealth.  **[BX_3413745_25]**  He believes there's immense opportunity to distribute these products more broadly, leveraging Blackstone's strong brand.  **[BX_3413745_25]**  With approximately **$90 trillion** of wealth held by individuals with over **$1 million** in savings, and only **1%** allocated to private assets versus **30%** for institutional partners, there's significant room for growth.  **[BX_3413745_25]** 

10. **BXPE Fundraising Capacity**  
    **Q:** Can you ramp BXPE inflows beyond $1-2 billion quarterly?  
    **A:** Jonathan Gray stated that they've been steadily building out distribution partnerships for BXPE, expanding within the U.S. and globally, including success in Canada.  **[BX_3413745_12]**  The key driver is investment performance, and after delivering strong results in the first year, they have confidence in deploying more at scale.  **[BX_3413745_12]**  As they continue to deliver performance, they expect investors to become more comfortable, which could allow inflows to ramp beyond the current **$1-2 billion** quarterly pace.  **[BX_3413745_12]** 

11. **Retirement Products Outlook**  
    **Q:** How do you see opportunities in retirement space evolving?  
    **A:** Jonathan Gray observed that the retirement business has evolved into a 'have-not' environment, where most private sector workers lack access to private assets in their 401(k) plans.  **[BX_3413745_13]**  He believes it's logical that private assets will eventually be included in target-date funds, allowing all individuals to benefit.  **[BX_3413745_13]**  If regulations change, Blackstone is uniquely positioned due to their brand, performance, and breadth of products.  **[BX_3413745_13]**  He expects this to happen; it's a question of when, not if.  **[BX_3413745_13]** 

12. **FRE Margin Expectations**  
    **Q:** What's the outlook for FRE margins in '25 excluding FRPR?  
    **A:** Michael Chae indicated they feel good about their margin position, with management fees expected to grow due to the full-year benefit of flagship vehicles activated in 2024.  **[BX_3413745_16]**  Base management fees in Q4 were up **10%** year-over-year, and they consider that growth rate a reasonable starting point for 2025.  **[BX_3413745_16]**  Operating expenses grew **11%** in Q4, which is also considered a good starting point.  **[BX_3413745_16]**  They manage compensation holistically across the firm and are investing in new initiatives but overall expect robust margin stability.  **[BX_3413745_16]** 

13. **New Multi-Asset Credit Fund**  
    **Q:** How will the new multi-asset credit fund compare to BCRED?  
    **A:** Jonathan Gray noted that the new fund will encompass the breadth of their credit capabilities beyond just direct lending, including asset-backed finance and real estate finance globally.  **[BX_3413745_17]**  It will be structured differently to be more accessible to investors.  **[BX_3413745_17]**  He did not provide further details due to legal constraints but suggested that the fund would not cannibalize BCRED and could reach a wider array of distributors.  **[BX_3413745_17]** 

14. **Impact of Spread Tightening**  
    **Q:** How does spread tightening affect FRPR in credit?  
    **A:** Michael Chae explained that a **50 basis point** decline in base rates impacts fee-related performance revenues by about **4%** across the BCRED platform.  **[BX_3413745_18]**  They have absorbed such impacts over the past 12 months, with BCRED growing at **18%**.  **[BX_3413745_18]**  Jonathan Gray added that spread tightening hasn't significantly impacted them because their portfolios are mostly floating rate, and credit quality is more important than spread tightening.  **[BX_3413745_18]** 

15. **BIP FRPR and Margins**  
    **Q:** What's the trajectory for BIP FRPR and related margins?  
    **A:** Jonathan Gray emphasized the extraordinary momentum in their infrastructure business, delivering **17% net** returns in an open-ended format.  **[BX_3413745_21]**  Michael Chae noted that they expect to realize a modest but material amount of incentive fees in Q2.  **[BX_3413745_21]**  In 2025, infrastructure incentive fees and FRPRs will be recognized in the second and third quarters, not the first and fourth.  **[BX_3413745_21]**  The FRPR margins for infrastructure are slightly lower than the overall firm due to being in development mode.  **[BX_3413745_21]** 

16. **Tariffs and Trade War Impact**  
    **Q:** How could tariffs or trade war affect your portfolio?  
    **A:** Jonathan Gray stated that they don't have many businesses exporting physical goods at scale to the U.S., which is the most at-risk area.  **[BX_3413745_22]**  While tariffs may rise, it's uncertain which countries or industries will be affected, and negotiations can change rapidly.  **[BX_3413745_22]**  Overall, they don't see significant impact on their business in Europe and Asia.  **[BX_3413745_22]**  Michael Chae added that about **75%** of their portfolio is in the U.S., **15%** in Europe, and a modest single-digit percentage in Asia, providing manageable exposure to non-U.S. markets.  **[BX_3413745_22]** 

09e1ff028c3d3dd71b11b81a411cfc4e75940f55bbc728c391d5a33341fc5284

BX Q4: Real estate supply starts fell two-thirds (3%→1%), borrowing costs from 9% to 6%. Expect stronger cash flows, rising asset values, plus surging IPOs (S&P +60%), fueling M&A. One-time infra gains may not recur, but outlook stays robust.

3fb77a89afab60d8474ef9c9a7d2a6e17a3f21fd7bd4df4283c6fd5e839e13b9

**Annual guidance for FY 2025:**  
- **Fee-Related Earnings (FRE) Margin**: Margin stability expected  **[BX_3413745_16]**  (no change from prior guidance  **[BX_3402960_9]** )  
- **Management fees**: Anticipated to grow at a double-digit rate  **[BX_3413745_16]**  (no prior guidance)  
- **Operating expenses**: Expected to grow at a low double-digit rate  **[BX_3413745_16]**  (no prior guidance)  
- **Fee-Related Performance Revenues (FRPR)**: From Core+ and BREIT strategies expected to carry higher incremental margins  **[BX_3413745_21]** **[BX_3413745_16]**  (no prior guidance)  
- **Realizations**: Overall activity meaningfully higher in the second half of 2025  **[BX_3413745_8]**  (no prior guidance)  
- **Real Estate Recovery**: Confidence in a sustained commercial real estate recovery  **[BX_3413745_5]**  (no prior guidance)  
- **Credit and Insurance Business**: Expected to deliver strong financial performance in 2025  **[BX_3413745_7]** **[BX_3413745_3]**  (no prior guidance)  
- **Infrastructure Strategy**: Eligible for fee-related performance revenues in Q4 2025  **[BX_3413745_7]**  (no prior guidance)  
- **Private Wealth Business**: Further acceleration in 2025  **[BX_3413745_1]**  (no prior guidance)  

b9cef54b59f68e1e2a27d3dc80f65786d18dd70f8078ea4686236e5d4d411c00

Blackstone Inc. is the world's largest alternative asset manager, managing over $1 trillion in total assets as of December 31, 2023. The company operates through four main business segments: Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions, generating revenue primarily through management fees, performance allocations, and incentive fees, which vary with market conditions and business cycles **[0001193125-24-044485_d734131d10k.htm:9]** **[0001193125-24-264461_d888166dex991.htm:22]** **[0001193125-24-249809_d896208d10q.htm:17]**. Blackstone offers a diverse range of investment products, including traditional drawdown funds, perpetual capital vehicles, and customized fund solutions, and has been expanding its private wealth strategy to cater to high-net-worth and mass affluent individual investors **[0001193125-24-044485_d734131d10k.htm:14]**.

1. **Real Estate** - Leads globally in real estate investing, focusing on high-quality assets with growth potential, such as logistics, data centers, rental housing, and hospitality **[0001193125-24-130670_d806510d10q.htm:65]** **[0001193125-24-192846_d844230d10q.htm:69]**.
2. **Private Equity** - Targets a broad range of investments, including corporate private equity, energy transition, and growth equity **[BX_3370829_7]** **[0001193125-24-044485_d734131d10k.htm:14]**.
3. **Credit & Insurance** - Includes strategies like direct lending and opportunistic credit **[BX_3370829_7]**.
4. **Hedge Fund Solutions** - Manages a variety of hedge fund strategies and includes the GP Stakes business; will be renamed Multi-Asset Investing in 2024 **[0001193125-24-044485_d734131d10k.htm:14]**.

329501edd4742b86a2172f83a5191cc6ca81c8fca06bc3aac8d6f975bd0b6326

48d07ddf2dd3f324f59ee1dd528b6f95bad34d991df8270fd60ad4e47641f617

ae364d60ffa70c7418c1f846c3845ee865fa663b22e475eff838902454125a9b

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Perpetual Capital Total AUM ($B)** | 371.1  **[0001193125-23-048733_d459795d10k.htm:153]**  | 380.5  **[0001193125-23-137073_d480850d10q.htm:79]**  | 384.3  **[0001193125-23-203835_d868231d10q.htm:93]**  | 388.3  **[0001193125-23-270358_d547912d10q.htm:95]**  | 396.3  **[0001193125-24-044485_d734131d10k.htm:148]**  | 408.1  **[0001193125-24-130670_d806510d10q.htm:83]**  | 418.6  **[0001193125-24-192846_d844230d10q.htm:93]**  | 434.7  **[0001193125-24-249809_d896208d10q.htm:98]**  |
| **Net Accrued Performance Revenues ($B)** | 6.8  **[0001193125-23-015663_d453228dex991.htm:13]**  | 6.372  **[0001193125-23-137073_d480850d10q.htm:79]**  | 6.5  **[0001193125-23-190073_d536731dex991.htm:10]**  | 6.4  **[0001193125-23-258911_d515078dex991.htm:3]**  | 5.8  **[0001193125-24-014831_d701698dex991.htm:3]**  | 6.1  **[0001193125-24-099867_d781420dex991.htm:2]**  | 6.2  **[0001193125-24-180721_d25511dex991.htm:4]**  | 7.0  **[0001193125-24-238418_d844809dex991.htm:4]**  |
| **Realizations from BREDS ($B)** | 0.538  **[0001193125-23-015663_d453228dex991.htm:5]**  | 0.671  **[0001193125-23-137073_d480850d10q.htm:77]**  | 0.879  **[0001193125-23-203835_d868231d10q.htm:89]**  | 0.917  **[0001193125-23-258911_d515078dex991.htm:5]**  | 0.934  **[0001193125-24-014831_d701698dex991.htm:5]**  | 1.2  **[0001193125-24-130670_d806510d10q.htm:81]**  | 2.4  **[0001193125-24-192846_d844230d10q.htm:90]**  | 2.4  **[0001193125-24-249809_d896208d10q.htm:95]**  |
| **Realizations from BREIT ($B)** | 7.7  **[0001193125-23-048733_d459795d10k.htm:152]**  | 2.4  **[0001193125-23-137073_d480850d10q.htm:77]**  | 4.9  **[0001193125-23-203835_d868231d10q.htm:88]**  | 2.5  **[0001193125-23-270358_d547912d10q.htm:90]**  | 9.9  **[0001193125-24-044485_d734131d10k.htm:146]**  | 1.5  **[0001193125-24-130670_d806510d10q.htm:80]**  | 1.4  **[0001193125-24-192846_d844230d10q.htm:90]**  | 2.0  **[0001193125-24-249809_d896208d10q.htm:95]**  |
| **Inflows from BREDS ($B)** | 7.825  **[0001193125-23-015663_d453228dex991.htm:4]**  | 5.3  **[0001193125-23-137073_d480850d10q.htm:76]**  | 3.1  **[0001193125-23-203835_d868231d10q.htm:87]**  | 2.3  **[0001193125-23-270358_d547912d10q.htm:91]**  | 14.967  **[0001193125-24-014831_d701698dex991.htm:4]**  | 3.6  **[0001193125-24-130670_d806510d10q.htm:80]**  | 2.6  **[0001193125-24-192846_d844230d10q.htm:90]**  | 2.0  **[0001193125-24-249809_d896208d10q.htm:93]**  |
| **Inflows from Corporate PE ($B)** | 1.7  **[0001193125-23-015663_d453228dex991.htm:4]**  | 1.4  **[0001193125-23-137073_d480850d10q.htm:78]**  | 5.7  **[0001193125-23-203835_d868231d10q.htm:89]**  | 0.846  **[0001193125-23-258911_d515078dex991.htm:4]**  | 1.8  **[0001193125-24-014831_d701698dex991.htm:6]**  | 3.3  **[0001193125-24-130670_d806510d10q.htm:81]**  | 23.3  **[0001193125-24-192846_d844230d10q.htm:88]**  | 4.7  **[0001193125-24-238418_d844809dex991.htm:4]**  |
| **Realizations from Corporate PE ($B)** | 3.7  **[0001193125-23-015663_d453228dex991.htm:4]**  | 4.6  **[0001193125-23-137073_d480850d10q.htm:78]**  | 1.6  **[0001193125-23-203835_d868231d10q.htm:88]**  | 2.9  **[0001193125-23-270358_d547912d10q.htm:93]**  | 3.1  **[0001193125-24-044485_d734131d10k.htm:146]**  | 2.5  **[0001193125-24-130670_d806510d10q.htm:82]**  | 4.2  **[0001193125-24-192846_d844230d10q.htm:90]**  | 2.2  **[0001193125-24-238418_d844809dex991.htm:6]**  |
| **Inflows from Direct Lending ($B)** | 3.5  **[0001193125-23-015663_d453228dex991.htm:7]**  | 6.3  **[0001193125-23-137073_d480850d10q.htm:78]**  | 3.2  **[0001193125-23-203835_d868231d10q.htm:87]**  | 5.0  **[0001193125-23-270358_d547912d10q.htm:93]**  | 7.6  **[0001193125-24-014831_d701698dex991.htm:7]**  | 7.3  **[0001193125-24-099867_d781420dex991.htm:6]**  | 8.3  **[0001193125-24-180721_d25511dex991.htm:7]**  | 8.9  **[0001193125-24-238418_d844809dex991.htm:7]**  |
| **Realized Performance Revenues ($M)** | 472.7  **[0001193125-23-015663_d453228dex991.htm:3]**  | 641.5  **[0001193125-23-137073_d480850d10q.htm:56]**  | 388.4  **[0001193125-23-190073_d536731dex991.htm:3]**  | 337.9  **[0001193125-23-258911_d515078dex991.htm:3]**  | 693.213  **[0001193125-24-014831_d701698dex991.htm:3]**  | 536.393  **[0001193125-24-099867_d781420dex991.htm:2]**  | 542.9  **[0001193125-24-180721_d25511dex991.htm:3]**  | 342.7  **[0001193125-24-238418_d844809dex991.htm:3]**  |
| **Net Realizations ($M)** | 366.9  **[0001193125-23-015663_d453228dex991.htm:3]**  | 10.2  **[0001193125-23-137073_d480850d10q.htm:89]**  | 202.6  **[0001193125-23-190073_d536731dex991.htm:3]**  | 259.4  **[0001193125-23-258911_d515078dex991.htm:3]**  | 424.8  **[0001193125-24-014831_d701698dex991.htm:3]**  | 293.3  **[0001193125-24-099867_d781420dex991.htm:2]**  | 308.4  **[0001193125-24-180721_d25511dex991.htm:3]**  | 225.5  **[0001193125-24-238418_d844809dex991.htm:3]**  |
| **Realized Performance Compensation ($M)** | 161.8  **[0001193125-23-015663_d453228dex991.htm:3]**  | 296.0  **[0001193125-23-137073_d480850d10q.htm:58]**  | 178.4  **[0001193125-23-190073_d536731dex991.htm:3]**  | 133.995  **[0001193125-23-258911_d515078dex991.htm:41]**  | 287.6  **[0001193125-24-014831_d701698dex991.htm:3]**  | 253.024  **[0001193125-24-099867_d781420dex991.htm:34]**  | 251.1  **[0001193125-24-180721_d25511dex991.htm:36]**  | 157.6  **[0001193125-24-238418_d844809dex991.htm:38]**  |
| **Fee Related Performance Revenues ($M)** | 172.7  **[0001193125-23-015663_d453228dex991.htm:3]**  | 148.2  **[0001193125-23-137073_d480850d10q.htm:89]**  | 266.7  **[0001193125-23-190073_d536731dex991.htm:3]**  | 274.6  **[0001193125-23-258911_d515078dex991.htm:3]**  | 168.994  **[0001193125-24-014831_d701698dex991.htm:3]**  | 295.501  **[0001193125-24-099867_d781420dex991.htm:2]**  | 177.1  **[0001193125-24-180721_d25511dex991.htm:3]**  | 264.1  **[0001193125-24-238418_d844809dex991.htm:3]**  |
| **Invested Performance Eligible AUM ($B)** | 501.0  **[0001193125-23-015663_d453228dex991.htm:4]**  | 136.8  **[0001193125-23-137073_d480850d10q.htm:98]**  | 503.8  **[0001193125-23-190073_d536731dex991.htm:4]**  | 504.9  **[0001193125-23-258911_d515078dex991.htm:4]**  | 504.7  **[0001193125-24-014831_d701698dex991.htm:4]**  | 515.4  **[0001193125-24-099867_d781420dex991.htm:3]**  | 531.3  **[0001193125-24-180721_d25511dex991.htm:4]**  | 155.7  **[0001193125-24-249809_d896208d10q.htm:124]**  |
| **Unrealized Investments Value ($M)** | 69,213.23  **[0001193125-23-015663_d453228dex991.htm:15]**  | 17,860.139  **[0001193125-23-137073_d480850d10q.htm:85]**  | 70,825.555  **[0001193125-23-190073_d536731dex991.htm:12]**  | 70,819.791  **[0001193125-23-270358_d547912d10q.htm:97]**  | 68,646.642  **[0001193125-24-014831_d701698dex991.htm:14]**  | 69,149.508  **[0001193125-24-130670_d806510d10q.htm:86]**  | 17,178.381  **[0001193125-24-192846_d844230d10q.htm:98]**  | 17,545.006  **[0001193125-24-249809_d896208d10q.htm:104]**  |
| **Realized Investments Value ($M)** | 542.4  **[0001193125-23-015663_d453228dex991.htm:2]**  | 17,155  **[0001193125-23-137073_d480850d10q.htm:29]**  | N/A | N/A | 32,228.993  **[0001193125-24-014831_d701698dex991.htm:17]**  | 206,858.751  **[0001193125-24-099867_d781420dex991.htm:15]**  | 23,500  **[0001193125-24-180721_d25511dex991.htm:3]**  | 45,657.216  **[0001193125-24-249809_d896208d10q.htm:101]**  |
| **Total Investments Value ($M)** | 238,560.284  **[0001193125-23-015663_d453228dex991.htm:15]**  | 26,985.951  **[0001193125-23-137073_d480850d10q.htm:29]**  | 242,300.665  **[0001193125-23-190073_d536731dex991.htm:12]**  | 9,770.931  **[0001193125-23-270358_d547912d10q.htm:37]**  | 241,336.414  **[0001193125-24-014831_d701698dex991.htm:14]**  | 242,314.136  **[0001193125-24-099867_d781420dex991.htm:12]**  | 249,160.955  **[0001193125-24-180721_d25511dex991.htm:13]**  | 251,608.869  **[0001193125-24-238418_d844809dex991.htm:14]**  |

eee0028cad9cfa4acf9d34ab02723fc44343330f318b77b265797ead50da1e08

1. Given the substantial capital required for your data center investments and the rapid growth in this area, how confident are you that your fundraising efforts can keep pace with deployment opportunities, and what strategies are you implementing to ensure sufficient capital availability in light of potential fundraising challenges?  **[BX_3402960_14]** **[BX_3402960_4]** **[BX_3402960_2]** 

2. Operating expenses increased this quarter due to placement fees, third-party servicer fees, and consulting spend  **[BX_3402960_9]** ; how do you anticipate these expenses impacting margins and FRE growth in the near term, and what measures are you taking to manage operating leverage next year?

3. With the back book headwinds impacting FRE growth and metrics falling short of expectations, particularly with a 10% run rate of back book pressures  **[BX_3402960_17]** , how do you plan to overcome these challenges to ensure sustainable organic net flow rates and FRE growth moving forward?

4. Given the renewed interest in commercial real estate and the positive trends in BREIT flows  **[BX_3402960_2]** , how sustainable do you believe this recovery is, and what risks do you foresee that could potentially reverse these positive net flow trends?

5. As the asset-based lending market represents a $25 trillion opportunity, and private players currently hold only 1–2%  **[BX_3402960_10]** , do you believe you have done enough to secure your fair share in this space, and what further steps are you taking to enhance your position, particularly regarding bank partnerships and origination capabilities?

684c1fe30761b1b27303310240f0670e6a45c2ca1c743a5b3aab71d3644d34f5

af754586355e2fa380b96c737119293613c177d3f932427c8f5793ef038dbc3d

4b3ff13886b57a55b67cdacba221408ba4826ef5504e6534f6e7da8a21f5e043

**Net Accrued Performance Revenues ($B)**

**Realizations from BREDS ($B)**

**Realizations from BREIT ($B)**

**Inflows from BREDS ($B)**

**Inflows from Corporate PE ($B)**

**Realizations from Corporate PE ($B)**

**Inflows from Direct Lending ($B)**

**Realized Performance Revenues ($M)**

**Net Realizations ($M)**

**Realized Performance Compensation ($M)**

**Fee Related Performance Revenues ($M)**

**Invested Performance Eligible AUM ($B)**

**Unrealized Investments Value ($M)**

**Realized Investments Value ($M)**

a41c2b8b66233c05f535e20eb8373fef2aa8151196f2a2555a72e6870ba7a1e9

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024 and FY 2025
- **Guidance:**
  1. **Fee-Related Earnings (FRE):** Anticipates a material step-up in Q4 2024 due to full management fees for multiple funds exiting fee holidays.
  2. **Management Fees:** Continued growth expected due to flagship vehicles and expansion of perpetual strategies.
  3. **Fee-Related Performance Revenues:** Expansion expected, particularly from direct lending BDCs and BREIT.
  4. **Operating Expenses:** Lower growth rate expected in Q4 2024 compared to Q3 2024.
  5. **Fundraising Environment:** Better environment expected in 2025.
  6. **Real Estate Activity:** Increased activity anticipated in logistics, rental housing, and data centers.
  7. **Private Wealth Channel:** Growth expected as base rates decline and investor enthusiasm increases  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Q4 2024 and FY 2025
- **Guidance:**
  1. **Net Realizations:** Anticipates acceleration over time as markets heal.
  2. **Fee-Related Earnings (FRE):** Material step-up expected in Q4 2024.
  3. **2025 Outlook:** Full-year benefit of flagship vehicles and expansion of perpetual strategies.
  4. **Real Estate and Infrastructure:** Optimism about increasing values and AI infrastructure investments.
  5. **Private Wealth Channel:** Launch of new products and expansion in Asia  **[BX_3393425_8]** **[BX_3393425_3]** **[BX_3393425_2]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Fee-Related Earnings (FRE) and Margins:** Stability expected with potential for improvement.
  2. **Investment Performance and Realizations:** Muted net realizations with strong underlying FRE.
  3. **Fundraising and Deployment:** Robust pipeline with $25 billion invested in Q1.
  4. **Private Wealth Channel:** Continued growth expected.
  5. **Infrastructure and Credit Business:** Growth expected with inflows from insurance clients.
  6. **Market Environment and Economic Outlook:** Positioned to take advantage of opportunities despite uncertainties  **[BX_3380004_6]** **[BX_3380004_4]** **[BX_3380004_1]** **[BX_3380004_5]** **[BX_3380004_7]** **[BX_3380004_18]** **[BX_3380004_10]** **[BX_3380004_2]** **[BX_3380004_8]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Management Fees and Fee-Earning AUM:** Increase expected as drawdown funds activate.
  2. **Fund Activation:** Several flagship funds to start earning fees.
  3. **Private Credit Strategy:** Targeting $10 billion for the fifth strategy.
  4. **Perpetual Capital Platform:** Expansion with significant growth in fee-earning AUM.
  5. **Insurance Channel:** Substantial inflows expected.
  6. **Real Estate:** Recovery expected with $65 billion of dry powder.
  7. **Investment Activity:** Focus on digital infrastructure, enterprise software, and energy transition.
  8. **Fee-Related Earnings (FRE) Margin:** Aim to maintain stability.
  9. **Realizations:** Anticipates acceleration in the future.
  10. **Insurance Inflows:** Baseline inflows expected from major clients  **[BX_3370829_7]** **[BX_3370829_8]** **[BX_3370829_5]** **[BX_3370829_4]** **[BX_3370829_19]** **[BX_3370829_14]** **[BX_3370829_0]** .

dc85a5de4435b50f5af893bc9c7a658509608acfec887342a32441cecbf8f91f

Real Estate

- Management Fees

- Fee Related Revenues

- Realized Performance Revenues

- Realized Investment Income

Private Equity

Credit & Insurance

Hedge Fund Solutions

Multi-Asset Investing

Financial Advisory

cd8b060678915b880fd1fa257850bbb41ec99adf01f4016ce92842e4e39c6ceb

b1c09aabf2e30529e4081af5a17a51884d2354e45b5a0358c2792559db2914bc

- **Private funds, specialized investment funds, funds structured for individual investors, hedge funds, funds of hedge funds, and other sponsors managing pools of capital** - Compete with Blackstone in the asset management business  **[0001193125-24-044485_d734131d10k.htm:46]** .
- **Corporate buyers, traditional asset managers, commercial banks, investment banks, and other financial institutions (including sovereign wealth funds)** - Compete with Blackstone for investment opportunities and capital  **[0001193125-24-044485_d734131d10k.htm:46]** .
- **Traditional asset managers** - Some have developed their own private equity and retail platforms, offering alternative strategies to hedge fund investments  **[0001193125-24-044485_d734131d10k.htm:46]** .
- **Institutional investors** - Some prefer to in-source their own investment professionals and make direct investments without private equity advisers like Blackstone  **[0001193125-24-044485_d734131d10k.htm:24]** .
- **Sponsors managing other funds, investment vehicles, and other pools of capital, other financial institutions and institutional investors (including sovereign wealth and pension funds), corporate buyers** - Compete with Blackstone for attractive investment opportunities  **[0001193125-24-044485_d734131d10k.htm:24]** .

d202a808d11c3caf9918c844eb71f14a45bfe45a1d73a2c2b0d2a57a1543fe85

| Name               | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                     |
|--------------------|--------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stephen A. Schwarzman | Co-Founder, Chairman, and Chief Executive Officer                        | 1985             | Stephen A. Schwarzman is the **Co-Founder, Chairman, and Chief Executive Officer** of Blackstone Inc. He has been involved in all phases of the firm's development since its founding in **1985**. He is also an active philanthropist  **[0001193125-24-044485_d734131d10k.htm:275]** **[0001193125-23-048733_d459795d10k.htm:281]** **[0001193125-24-044485_d734131d10k.htm:276]** . |
| Jonathan D. Gray   | President, Chief Operating Officer, and Director                          | 1992             | Jonathan D. Gray is the **President and Chief Operating Officer** of Blackstone Inc. and a member of the board of directors. He joined Blackstone in **1992** and has served as President and COO since **March 2018**  **[0001193125-24-044485_d734131d10k.htm:276]** **[0001193125-23-048733_d459795d10k.htm:282]** .                   |
| Michael S. Chae    | Chief Financial Officer                                                  | August 2015      | Michael S. Chae is the **Chief Financial Officer** of Blackstone Inc. and a member of the firm's Management Committee. He has served as CFO since **August 2015** and joined Blackstone in **1997**  **[0001193125-24-044485_d734131d10k.htm:276]** .                                                          |
| John G. Finley     | Chief Legal Officer                                                      | September 2010   | John G. Finley is the **Chief Legal Officer** of Blackstone Inc. and a member of the firm's Management Committee. He joined Blackstone in **September 2010**  **[0001193125-23-048733_d459795d10k.htm:283]** **[0001193125-24-044485_d734131d10k.htm:276]** .                                                                                               |
| Vikrant Sawhney    | Chief Administrative Officer and Global Head of Institutional Client Solutions | September 2019   | Vikrant Sawhney is Blackstone's **Chief Administrative Officer and Global Head of Institutional Client Solutions**. He has served in this role since **September 2019** and joined Blackstone in **2007**  **[0001193125-24-044485_d734131d10k.htm:277]** .                                                    |

fb1557a38abb756abedb99b1dad1364ddac461bfc590db7374e2bb9627bcfe45

**Quarterly guidance for Q4 2024:**
- **Fee-Related Earnings (FRE)**: Anticipates a material step-up in Q4 2024 due to full management fees for multiple funds exiting fee holidays  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no change from “Material step-up expected in Q4 2024”  **[BX_3393425_8]** **[BX_3393425_3]** **[BX_3393425_2]** )  
- **Private Wealth Channel**: Growth expected as base rates decline and investor enthusiasm increases  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no change from “Launch of new products and expansion in Asia”  **[BX_3393425_8]** **[BX_3393425_3]** **[BX_3393425_2]** )  
- **Management Fees**: Continued growth expected due to flagship vehicles and expansion of perpetual strategies  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no prior guidance)  
- **Fee-Related Performance Revenues**: Expansion expected, particularly from direct lending BDCs and BREIT  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no prior guidance)  
- **Operating Expenses**: Lower growth rate expected in Q4 2024 compared to Q3 2024  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no prior guidance)  
- **Real Estate Activity**: Increased activity anticipated in logistics, rental housing, and data centers  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Fundraising Environment**: Better environment expected in 2025  **[BX_3402960_7]** **[BX_3402960_17]** **[BX_3402960_9]** **[BX_3402960_19]** **[BX_3402960_13]** **[BX_3402960_12]**  (no prior guidance)

42f8667b67911b4a309403a8de79db64d003f352f34ca3edfec7eac420732690

Total Revenue [USD, Thousands]

Cost of Goods Sold (COGS) [USD, Thousands]

SG&A [USD, Thousands]

R&D [USD, Thousands]

D&A [USD, Thousands]

Interest Expense [USD, Thousands]

Operating Income (EBIT) [USD, Thousands]

Net Income [USD, Thousands]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

6f755b30e155202f552ee4769bd0490b8984ed4bc1ed946f0301c98d45fa4638

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **July 16, 2024**  **[0001193125-24-249809_d896208d10q.htm:54]** **[0001193125-24-249809_d896208d10q.htm:137]** **[0001193125-24-249809_d896208d10q.htm:151]**  |
| End Date/Duration        | No specified expiration date  **[0001193125-24-249809_d896208d10q.htm:54]** **[0001193125-24-249809_d896208d10q.htm:137]** **[0001193125-24-249809_d896208d10q.htm:151]**  |
| Total additional amount  | **$2.0 billion**  **[0001193125-24-249809_d896208d10q.htm:54]** **[0001193125-24-249809_d896208d10q.htm:137]** **[0001193125-24-249809_d896208d10q.htm:151]**  |
| Remaining authorization amount | **$1.9 billion** (as of September 30, 2024)  **[0001193125-24-249809_d896208d10q.htm:54]** **[0001193125-24-249809_d896208d10q.htm:137]** **[0001193125-24-249809_d896208d10q.htm:151]**  |
| Details                  | The program may be changed, suspended, or discontinued at any time  **[0001193125-24-249809_d896208d10q.htm:54]** **[0001193125-24-249809_d896208d10q.htm:137]** **[0001193125-24-249809_d896208d10q.htm:151]**  |

6e74e9b1372a7d39404c634614b12943f63c47cea63d7d26706da46330684b07

| Name                   | Start Date | End Date | Reason for Change |
|------------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2006  **[0001193125-24-044485_d734131d10k.htm:196]**    | Present  | Current auditor   |

f0c4fd351d40d1ba114d84e58e968cc72c6e34ca7f500036d917ee784bd688d3

- Total Revenue: $3,663 million (+**40%** YoY)  **[0001193125-24-249809_d896208d10q.htm:9]** **[0001193125-23-270358_d547912d10q.htm:7]**   
- SG&A: $341 million (+35% YoY)  **[0001193125-24-249809_d896208d10q.htm:9]** **[0001193125-23-270358_d547912d10q.htm:7]**   
- Interest Expense: $111 million (+**2,450%** YoY)  **[0001193125-24-249809_d896208d10q.htm:9]** **[0001193125-23-270358_d547912d10q.htm:7]**   
- Net Income: $1,565 million (+**88%** YoY)  **[0001193125-24-249809_d896208d10q.htm:9]** **[0001193125-23-270358_d547912d10q.htm:7]**   
- EPS (Diluted): $1.02 (+44% YoY)  **[0001193125-24-249809_d896208d10q.htm:9]** **[0001193125-23-270358_d547912d10q.htm:7]**   

4f72428f6f9b3d7eab83a488a3f5e5bdd0de7e77dc1b6b2fe36888cb402c95c5

5f0567c95e2de5d3206c5c1a3c7b89aa591e359459de13c0ec818e9101171fb8

b9fa6717faa767d68870c05f9b5c1486a7b60dfa03894a73eba43f427874d428

Fee-Earning Assets Under Management (USD billions)

Total Assets Under Management for Real Estate (USD thousands)

Total Assets Under Management for Private Equity (USD thousands)

Total Assets Under Management for Credit & Insurance (USD thousands)

Total Assets Under Management for Multi-Asset Investing (USD thousands)

Total Assets Under Management (All Segments) (USD thousands)

Net IRR for BREP VII (percentage)

Net IRR for BREP VIII (percentage)

7e01a271781450695dea56be891ea81d83c92d0cbcaf0a72e909f437703e6b8c

| Year | Amount Due (Millions) | Debt Type | Interest Rate (%) | % of Total Debt |
|------|-----------------------|-----------|-------------------|-----------------|
| 2025 | €300 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 2.000 **[0001193125-24-249809_d896208d10q.htm:134]** | 2.8% = (0.3B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2026 | €600 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 1.000 **[0001193125-24-249809_d896208d10q.htm:134]** | 5.5% = (0.6B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2027 | $300 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 3.150 **[0001193125-24-249809_d896208d10q.htm:134]** | 2.8% = (0.3B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2027 | $600 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 5.900 **[0001193125-24-249809_d896208d10q.htm:134]** | 5.5% = (0.6B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2028 | $650 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 1.625 **[0001193125-24-249809_d896208d10q.htm:134]** | 6.0% = (0.65B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2029 | €600 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 1.500 **[0001193125-24-249809_d896208d10q.htm:134]** | 5.5% = (0.6B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2030 | $500 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 2.500 **[0001193125-24-249809_d896208d10q.htm:134]** | 4.6% = (0.5B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2031 | $500 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 1.600 **[0001193125-24-249809_d896208d10q.htm:134]** | 4.6% = (0.5B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2032 | $800 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 2.000 **[0001193125-24-249809_d896208d10q.htm:134]** | 7.4% = (0.8B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2032 | $500 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 2.550 **[0001193125-24-249809_d896208d10q.htm:134]** | 4.6% = (0.5B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2033 | $900 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 6.200 **[0001193125-24-249809_d896208d10q.htm:134]** | 8.3% = (0.9B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2034 | €500 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 3.500 **[0001193125-24-249809_d896208d10q.htm:134]** | 4.6% = (0.5B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2042 | $250 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 6.250 **[0001193125-24-249809_d896208d10q.htm:134]** | 2.3% = (0.25B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2044 | $500 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 5.000 **[0001193125-24-249809_d896208d10q.htm:134]** | 4.6% = (0.5B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2045 | $350 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 4.450 **[0001193125-24-249809_d896208d10q.htm:134]** | 3.2% = (0.35B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2047 | $300 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 4.000 **[0001193125-24-249809_d896208d10q.htm:134]** | 2.8% = (0.3B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2049 | $400 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 3.500 **[0001193125-24-249809_d896208d10q.htm:134]** | 3.7% = (0.4B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2050 | $400 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 2.800 **[0001193125-24-249809_d896208d10q.htm:134]** | 3.7% = (0.4B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2051 | $550 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 2.850 **[0001193125-24-249809_d896208d10q.htm:134]** | 5.1% = (0.55B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |
| 2052 | $1,000 **[0001193125-24-249809_d896208d10q.htm:134]** | Senior Notes **[0001193125-24-249809_d896208d10q.htm:134]** | 3.200 **[0001193125-24-249809_d896208d10q.htm:134]** | 9.2% = (1.0B / 10.885B) * 100 **[0001193125-24-249809_d896208d10q.htm:8]** **[0001193125-24-249809_d896208d10q.htm:53]** |

fa6b320c83b4a69c5a0b5512f8826618aad5be3b834ce88aaf189676db2cfa35

1. **Outlook for Deployments in 2024**  
   **Q:** What's the outlook for deployments in 2024 versus last year's $74 billion?  
   **A:** Management expects deal activity to pick up in 2024 due to favorable market conditions, including the Fed moving from tightening to lowering rates, tighter spreads, and increased M&A volume. While putting precise numbers is difficult, they are optimistic about increased deployments compared to the previous year.  **[BX_3370829_9]** 

2. **Real Estate Carry and Realizations Timing**  
   **Q:** When will real estate carry return to normalized levels?  
   **A:** Management anticipates that real estate realizations may remain subdued in the first half of 2024 but expects them to pick up over time. This year is viewed as transitional, with better prospects as they look ahead, particularly into 2025. They advise keeping expectations lower for the immediate term but express confidence in the ultimate outcome.  **[BX_3370829_16]** 

3. **Private Equity Realizations Outlook**  
   **Q:** What's the outlook for private equity realizations amid market recovery concerns?  
   **A:** Management feels positive about private equity realizations, highlighting that they were up year-on-year in 2023. Strong performance in sectors like digital migration, energy transition, and life sciences contributes to their optimism. They believe their portfolio positioning supports continued strength in realizations.  **[BX_3370829_17]** 

4. **Direct Lending Opportunities**  
   **Q:** How is the outlook for direct lending given market competition?  
   **A:** While acknowledging increased competition as banks re-enter the market, management sees continued opportunity in direct lending. Their scale allows them to write large checks, providing certainty to borrowers. Credit quality remains strong, with average loan-to-value at **40%** and defaults nearly nonexistent. They anticipate more deal flow to match the growing capital supply.  **[BX_3370829_22]** 

5. **Fee-Related Revenue Growth and Margins**  
   **Q:** Can you sustain double-digit fee-related revenue growth and margin expansion in 2024?  
   **A:** Management feels confident about the embedded ramp in management fees, expecting growth to accelerate later in the year and into 2025 due to fund activations. On margins, they anticipate stability, emphasizing disciplined cost management and structural operating leverage in their model.  **[BX_3370829_14]** 

6. **Insurance Inflows and Growth Outlook**  
   **Q:** Do recent strong insurance inflows alter the 2024 outlook?  
   **A:** The strong inflows in the quarter are not seen as a pull-forward from 2025. Management expects baseline inflows from their four major insurance clients to meet or exceed prior ranges. They also see significant opportunities with other insurance clients, bolstering momentum in their insurance and credit business.  **[BX_3370829_19]** 

7. **Core Real Estate Investor Appetite**  
   **Q:** What's the outlook for institutional and retail appetite for core real estate?  
   **A:** Management believes it will take time for investor confidence to return to core real estate, requiring multiple quarters of strong performance. They anticipate cautious investor behavior due to recent modest losses and expect a gradual recovery as values stabilize and begin to grow.  **[BX_3370829_13]** 

8. **Commercial Real Estate Lending Platform**  
   **Q:** How are you broadening your commercial real estate lending platform?  
   **A:** Management sees opportunity in commercial mortgage real estate lending due to poor market sentiment and reduced capital from banks. With approximately **$70 billion** in the space, they are leveraging various capital sources to grow. They find attractive returns relative to risk and plan to lean into this area as spreads remain wide and loan-to-values have fallen.  **[BX_3370829_11]** 

9. **Management Fees and Fee Holidays**  
   **Q:** Are there more headwinds from fee holidays affecting management fees?  
   **A:** Management anticipates some marginal pressure due to 3- to 4-month fee holidays on new funds activating throughout the year. However, they expect an embedded upward ramp in management fees, with growth accelerating later in the year despite these temporary headwinds.  **[BX_3370829_12]** 

10. **Impact of U.S. Election on Activity**  
    **Q:** Will the upcoming U.S. election create an activity air pocket?  
    **A:** Management does not expect the election to deter transaction activity significantly. They believe deal flow will be more influenced by the Federal Reserve's actions on interest rates and inflation rather than electoral outcomes. They plan to maintain a long-term investment approach irrespective of the election.  **[BX_3370829_21]** 

11. **BXP and Retail Distribution**  
    **Q:** What's the addressable market and scaling potential for BXP?  
    **A:** Management sees significant growth potential for BXP, targeting individual investors who currently allocate only **1%** of their **$80 trillion** in wealth to alternatives, compared to **29-30%** for institutional clients. They aim to deliver strong performance to attract more investors and believe the product can grow to scale as confidence builds.  **[BX_3370829_18]** 

12. **FRE Margin Stability Mechanics**  
    **Q:** How can FRE margins remain stable when revenues decline?  
    **A:** Management attributes margin stability to disciplined cost management and an ability to adjust compensation in line with business performance. They highlight structural operating leverage and control over their cost structure, which enables them to maintain margins even amid revenue fluctuations.  **[BX_3370829_15]** 

13. **Fee Rates in Real Estate and Credit**  
    **Q:** Are current fee rates in real estate and credit businesses sustainable?  
    **A:** Management notes that average management fee rates across the firm have remained remarkably stable over multiple years. They acknowledge minor fluctuations due to factors like insurance inflows and specific transactions but view current rates as a solid baseline going forward.  **[BX_3370829_20]** 

14. **Performance Fees at BREIT and BPP**  
    **Q:** What's the outlook for performance fees at BREIT and BPP in 2024?  
    **A:** Management expects a better year compared to 2023, seeing a bottoming in property values but not a rapid V-shaped recovery. They believe it's a good time for deployment, with falling interest rates and reduced new supply aiding the sector, but precise value movements are hard to predict.  **[BX_3370829_23]** 

15. **Apartment Sector Outlook**  
    **Q:** What are your views on the apartment sector as we head into 2024?  
    **A:** Management sees single-family rentals as stronger in the near term due to housing shortages. In the multifamily space, they note a surge in new supply leading to flat or modestly negative rent growth, which may take **12 months or longer** to work through. They may invest into weakness in multifamily, given their long-term constructive view despite near-term headwinds.  **[BX_3370829_10]** 

570125d87073729b83471ff62103e850c4c39a03d3acf4e6deff50be9b31e165

1. **Real Estate Outlook**  
   **Q:** Where are we in the real estate investing cycle?  
   **A:** Jonathan Gray noted that real estate has faced two big headwinds: the office sector's challenges and rising interest rates. He believes these issues peaked in **October** and have now worked through the market.  **[BX_3380004_8]**  Gray sees this period as a time for "seed planting," comparing it to the post-global financial crisis period when Blackstone deployed capital into dislocated markets.  **[BX_3380004_8]**  With significant dry powder, including a **$30 billion global fund**, he expressed confidence in deploying capital and anticipates a more active year ahead.  **[BX_3380004_8]** 

2. **Impact of Interest Rates**  
   **Q:** How do higher-for-longer interest rates affect investment activity?  
   **A:** Gray stated that prolonged higher rates extend the investment window for Blackstone's **$191 billion of dry powder**.  **[BX_3380004_12]**  While rate hikes can slow realizations, they allow Blackstone to acquire assets at more favorable pricing.  **[BX_3380004_12]**  He emphasized that market conditions feel healthier than six months ago and that the firm remains forward-leaning in capital deployment.  **[BX_3380004_12]** 

3. **BXPE Growth Potential**  
   **Q:** What's the vision for BXPE's size and inflows?  
   **A:** Gray highlighted that BXPE's broad platform enables significant scaling potential.  **[BX_3380004_9]**  The platform spans various asset classes, including private equity, tactical opportunities, life sciences, and infrastructure.  **[BX_3380004_9]**  He believes BXPE can grow much larger than its current **$2.7 billion** in inflows, potentially matching or exceeding the scale of products like BREIT and BCRED.  **[BX_3380004_9]** 

4. **Private Credit Standards**  
   **Q:** Are credit underwriting standards becoming lax amid competition?  
   **A:** Gray assured that Blackstone is not seeing signs of excess in private credit.  **[BX_3380004_16]**  He noted that the average loan-to-value ratio in their direct lending portfolio was **44%** in the first quarter, reflecting disciplined underwriting.  **[BX_3380004_16]**  Despite tightening spreads, the risk-return profile remains compelling, with unleveraged yields around **11.5%**.  **[BX_3380004_16]** 

5. **BPP Returns and Fees**  
   **Q:** How can BPP returns recover and performance fees rebuild?  
   **A:** Gray acknowledged that returns in some BPP funds have dipped below hurdle rates.  **[BX_3380004_14]**  He attributed this to market sentiments and asset quality but expressed confidence that commercial real estate will recover over time.  **[BX_3380004_14]**  The firm anticipates that as the market improves, unrealized performance fees will resume, highlighting the long-term potential embedded in Blackstone's assets.  **[BX_3380004_14]** 

6. **Bank Partnerships and SRTs**  
   **Q:** Are synthetic risk transfers (SRTs) increasing risk like in 2008?  
   **A:** Gray explained that Blackstone is active in SRTs, mainly partnering with banks for capital relief transactions.  **[BX_3380004_11]**  They focus on areas like subscription lines, which have had negligible defaults historically.  **[BX_3380004_11]**  Gray emphasized that Blackstone conducts thorough due diligence on underlying credits and views these partnerships as beneficial for both banks and investors.  **[BX_3380004_11]** 

7. **Infrastructure Business Growth**  
   **Q:** How can infrastructure growth be accelerated?  
   **A:** Gray highlighted that Blackstone's infrastructure business, less than six years old, has reached **$44 billion AUM** with **15% net returns** since inception.  **[BX_3380004_7]**  The firm focuses on transportation infrastructure, energy transition, and digital infrastructure.  **[BX_3380004_7]**  Gray sees opportunities for geographic expansion into Europe and Asia and expects the business to grow into a "triple-digit AUM" area.  **[BX_3380004_7]** 

8. **Margin Outlook**  
   **Q:** What is the outlook for operating margins this year?  
   **A:** Michael Chae reiterated expectations of margin stability for the year.  **[BX_3380004_10]**  He noted that first-quarter margins were consistent with the previous year and that the firm actively manages its cost structure.  **[BX_3380004_10]**  Over the long term, Blackstone anticipates operating leverage and potential margin expansion.  **[BX_3380004_10]** 

9. **Deployment in Credit and Real Estate**  
   **Q:** Will deployment levels in credit and real estate rebound to prior highs?  
   **A:** Gray indicated that while it's hard to predict exact figures, there is directional momentum in both sectors.  **[BX_3380004_13]**  In real estate, he sees more opportunities, especially in Europe, due to negative sentiment despite solid fundamentals.  **[BX_3380004_13]**  In private credit, pipelines have accelerated, particularly in investment-grade and asset-backed areas.  **[BX_3380004_13]** 

10. **Global Wealth Management Expansion**  
    **Q:** How is the global wealth management business developing amid competition?  
    **A:** Gray stated that demand is broad-based, with strong relationships in the U.S. and growing interest internationally, including in Japan, Europe, and Canada.  **[BX_3380004_18]**  He emphasized Blackstone's long-standing presence, strong performance, and powerful brand as differentiators in the competitive landscape.  **[BX_3380004_18]** 

11. **AI Initiatives**  
    **Q:** How is Blackstone leveraging AI across its portfolios?  
    **A:** Gray emphasized that AI is hugely important and that Blackstone established its data science team in **2015**, now with over **50 people**.  **[BX_3380004_19]**  The firm has focused on predictive AI and is exploring generative AI applications.  **[BX_3380004_19]**  Additionally, Blackstone invests heavily in AI infrastructure, owning and building data centers worth **$50 billion** with another **$50 billion** in the pipeline.  **[BX_3380004_19]** 

12. **BREIT Rate Hedge Impact**  
    **Q:** What was the impact of the rate hedge on BREIT's performance?  
    **A:** Michael Chae reported that the rate hedge contributed approximately **1 point** of the **1.8%** net performance for BREIT in the first quarter.  **[BX_3380004_17]** 

13. **Compensation Ratios**  
    **Q:** Why was the fee-related performance comp ratio lower this quarter?  
    **A:** Chae explained that compensation is managed holistically and that variability can occur over time.  **[BX_3380004_15]**  He noted that equity-based compensation grew by **19%** year-over-year, reflecting stable grant levels and a trend toward lower growth rates in this expense category.  **[BX_3380004_15]** 

14. **Regulatory Focus on Illiquid ABS**  
    **Q:** Are regulatory concerns on illiquid ABS affecting insurance partnerships?  
    **A:** Gray acknowledged discussions around regulatory focus but stated that Blackstone primarily engages in direct, investment-grade private assets with risk profiles similar to traditional insurance investments.  **[BX_3380004_20]**  He believes these activities are beneficial for policyholders and expects constructive dialogue with regulators.  **[BX_3380004_20]** 

466011f646dcf92293f6aa94ce899ab9e5dc7a8ccb7f7c39a46bfd4b05c60903

- **Blackstone expects increased investment activity due to favorable market conditions**, including the Fed shifting from tightening to lowering rates, tighter debt market spreads, and rising M&A volume.  **[BX_3370829_9]**
- **Strong performance in private equity with over 7% revenue growth in Q4**, driven by sectors like digital migration, energy transition, and life sciences; leading to optimism about private equity realizations.  **[BX_3370829_17]**
- **Significant growth potential in private wealth**, highlighted by the successful **$1.3 billion** first close of **BXPE**, aiming to tap into an **$80 trillion** individual investor market with only **1% allocation to alternatives**.  **[BX_3370829_18]**

db5a52d672a1fe3d7b6cf96787299dcea9dabaf2481efea458e104947456a0fe

- **Underperformance in Secondary Investments**: Blackstone's secondary investment returns have trailed other asset classes in recent years, with gains of **2.5% in 2023** and **3% to date in 2024**, which could impact their ability to raise funds for future vintages.  **[BX_3393425_14]**
- **Regulatory Challenges in European Wealth Channel**: Blackstone faces difficulties expanding its wealth management products in Europe due to complex and varying regulations across countries. This has resulted in European semi-liquid products lagging behind U.S. counterparts, potentially slowing growth in the region's wealth channel.  **[BX_3393425_20]**
- **Muted Near-Term Inflows into Open-Ended Funds**: The firm anticipates that inflows into its open-ended funds, particularly in real estate, will remain **"a little bit muted over the near term"** as investors await more confident market fundamentals, which may impact asset growth in the short term.  **[BX_3393425_16]**

f34b42e722ec82d297c80bac2089d3d56056d04132a99f46d541dd4ce54d15ac

- **Blackstone's infrastructure platform has reached $44 billion AUM in less than 6 years**, delivering **15% net returns since inception**, and is expected to grow into a **triple-digit AUM business**. This exceptional growth and performance position Blackstone well for future expansion in this sector.  **[BX_3380004_7]**
- **Strong momentum in BXPE (Blackstone Private Equity)**, which raised **$2.7 billion** in its debut quarter. Leveraging Blackstone's **scale and broad platform**, BXPE has the potential to grow significantly as it meets investor demand for private equity exposure.  **[BX_3380004_9]**
- **Significant dry powder and increased opportunities for deployment in real estate and private credit**, with an **accelerated pipeline** and expectations of a **more active deployment year than last year**. This positions Blackstone to capitalize on market opportunities and drive growth.  **[BX_3380004_13]**

284bd5e394c571c26fefe71bac687ee98a7d246701c9955de51a6afbace64b76

- **Growth in certain key metrics fell short of expectations**, with back book pressures running at about 10% of fee-paying assets under management (FPAM), potentially impacting future fee-related earnings (FRE) growth outlook.  **[BX_3402960_17]**
- **Uncertainties in forming new strategic partnerships in the insurance sector**, as strategic relationships "take time" and it's "hard to predict when and how those will happen," which may slow down growth in this area.  **[BX_3402960_8]**
- **Concerns about Blackstone's competitive positioning in asset-based lending**, with questions about whether the firm has done enough to get its fair share in terms of bank partnerships and third-party origination, potentially limiting its ability to capture opportunities in the asset-backed world.  **[BX_3402960_10]**

98ded9fda7a56a037fcf31aeaf665f3160629b2bbd0a64e8914d33d2d21f5ac1

1. **Real Estate Market Outlook**  
   **Q:** What are the fundamentals driving your confidence in real estate deployment?  
   **A:** Jonathan Gray highlighted positive signs in real estate, particularly in apartments and logistics, where vacancy rates are low at **5%-6%**.  **[BX_3393425_15]**  He noted that supply has decreased significantly, with **multifamily starts down 50%** and **warehouse starts down 75%** from their peaks.  **[BX_3393425_15]**  Improved capital costs and increased bidder activity are creating favorable conditions for deployment.  **[BX_3393425_15]** 

2. **Asset-Backed Finance Opportunity**  
   **Q:** How do you view the opportunity in asset-backed finance and bank partnerships?  
   **A:** Gray described asset-backed finance as a significant opportunity in a **$5 trillion** market with low penetration.  **[BX_3393425_11]**  He mentioned strong client interest in higher returns from investment-grade private credit and noted that Blackstone is expanding platforms and partnerships in areas like fund finance, transportation, digital assets, and green energy.  **[BX_3393425_11]** 

3. **Fee-Related Earnings Margin Outlook**  
   **Q:** Should we expect an increase in FRE margins in 2025?  
   **A:** Michael Chae stated that margins are expected to remain stable in the near term, with operating leverage anticipated over the long term.  **[BX_3393425_13]**  He mentioned that factors like fee holidays and sensitivity to fee-related performance revenues affect margins but affirmed confidence in margin improvement over time.  **[BX_3393425_13]** 

4. **Wealth Management Competition**  
   **Q:** How do you see competition evolving in the wealth management channel?  
   **A:** Gray acknowledged increasing competition but emphasized Blackstone's first-mover advantage and strong brand.  **[BX_3393425_18]**  He highlighted their focus on financial advisors, innovation, and a **300-plus person global team** serving individual investors, which positions them well despite new entrants.  **[BX_3393425_18]** 

5. **Secondary Business Returns**  
   **Q:** Can you discuss the returns and fundraising prospects in the secondary business?  
   **A:** Gray expressed confidence in raising a larger flagship fund, citing long-term returns of **14%** across the business and recent funds delivering **21%-24% net**.  **[BX_3393425_14]**  He emphasized the growing need for liquidity in the alternatives market and Blackstone's advantage as the largest player.  **[BX_3393425_14]** 

6. **Investment Activity in Equity Businesses**  
   **Q:** Do you expect further progress in equity deployments and commitments?  
   **A:** Gray noted very positive signs with **$19 billion** committed at the quarter's end, indicating strong forward activity.  **[BX_3393425_9]**  He mentioned increased deal volume across equity strategies, including private equity and real estate, and expects positive trends in investing.  **[BX_3393425_9]** 

7. **Impact of U.S. Elections**  
   **Q:** How might the upcoming U.S. election affect Blackstone's activities?  
   **A:** Gray stated that investors are more focused on economic factors like inflation.  **[BX_3393425_12]**  He mentioned that post-election policies could impact areas such as antitrust, energy, and tariffs, but emphasized that Blackstone has successfully operated in varying political environments by focusing on long-term trends.  **[BX_3393425_12]** 

8. **Redemption Queues in Core Plus Real Estate**  
   **Q:** What's the update on redemption queues in BPP, and expectations for inflows?  
   **A:** Gray reported that redemptions remain single-digit across the BP product line.  **[BX_3393425_16]**  He anticipates that inflows may be muted in the near term due to investor caution but expects sentiments to improve as real estate performance picks up, potentially reversing redemption trends.  **[BX_3393425_16]** 

9. **BREIT Redemption Limits Impact**  
   **Q:** How did tightening redemption limits at SREIT affect the wealth market?  
   **A:** Gray observed a short-term impact in May, with investor nervousness affecting BREIT.  **[BX_3393425_17]**  However, after assuring investors about liquidity management, BREIT redemptions dropped **50%** from May to June and continued to decrease.  **[BX_3393425_17]**  The focus remains on delivering strong performance to maintain confidence.  **[BX_3393425_17]** 

10. **Gross to Net Flow Gap in AUM**  
    **Q:** How should we interpret the gross to net flow gap in AUM this quarter?  
    **A:** Chae explained that the gap results from assets moving between strategies and funds, particularly within open-ended funds.  **[BX_3393425_19]**  He noted that while this dynamic has increased over time, it is not expected to cause dramatic changes going forward.  **[BX_3393425_19]** 

11. **European Semi-Liquid Products**  
    **Q:** Why do European semi-liquid products lag U.S. products?  
    **A:** Gray attributed the lag to regulatory challenges and differing rules across European countries.  **[BX_3393425_20]**  He expressed commitment to working with regulators to make the environment more user-friendly and sees long-term opportunities despite current hurdles.  **[BX_3393425_20]** 

a8b00f968b9056c6b191ec14d1632bf07a1ce12dea7b26250ba0fef3b34e2a8c

1. **M&A and IPO Outlook**  
   **Q:** Will M&A and IPO activity increase, or will companies stay private longer?  
   **A:** Jonathan Gray believes the environment is improving for both **M&A and IPO activity** as debt costs come down and equity markets strengthen. He expects a much better IPO market in **2025**, which would be positive for **realizations and DPI**. Gray notes that private companies are being drawn into the market as public valuations rise. **[BX_3402960_20]**

2. **Impact of Lower Rates on Credit Business**  
   **Q:** How will lower base rates and tighter spreads affect the credit business?  
   **A:** Jonathan Gray states that even as base rates and spreads decline, Blackstone can still produce a **durable premium** over liquid fixed income. Products like **BCRED** have delivered **700 basis points** over base rates since inception. Relative returns remain attractive, supporting continued migration towards private credit. **[BX_3402960_15]**

3. **Fee-Related Earnings (FRE) Growth Outlook**  
   **Q:** What is the outlook for FRE growth amid back book headwinds?  
   **A:** Michael Chae expresses optimism for **2025 FRE growth**, citing multiple building blocks such as base management fees, activation of flagship vehicles, expansion of perpetual strategies, and momentum in credit and insurance. He acknowledges challenges but emphasizes a strong path forward without relying on quarter-to-quarter net flow algorithms. **[BX_3402960_17]**

4. **Secondaries Performance Lag**  
   **Q:** Why does secondaries performance continue to lag below hurdle rates?  
   **A:** Jonathan Gray maintains confidence in the secondaries business, highlighting that since inception, flagship private equity secondaries funds have achieved **high-teens net returns**. Recent underperformance is attributed to lower immediate gains from buying new deals at discounts and the lagging performance of mature underlying funds. Michael Chae adds that investment performance has been outstanding overall. **[BX_3402960_18]**

5. **Investing Pipeline and Sector Favorability**  
   **Q:** Is the November election delaying investments, and which sectors are favorable?  
   **A:** Jonathan Gray hasn't observed a slowdown due to the election and notes that both **real estate and private equity** are expected to see increased activity. Real estate may experience a larger percentage pickup due to rebounding from a low base, with conditions like falling interest rates and improving investor sentiment contributing to the positive outlook. **[BX_3402960_11]**

6. **Real Estate Investment Outlook**  
   **Q:** Will Blackstone be a net buyer or seller in real estate, and which assets are favored?  
   **A:** Stephen Schwarzman indicates that Blackstone has been a **net buyer** and expects to continue investing, especially as debt becomes more available at lower costs. The firm favors sectors like **logistics, rental housing, data centers**, and sees opportunities in select **office and retail** spaces. Sentiment is improving, and they anticipate increased realizations in **2025**. **[BX_3402960_12]**

7. **Asset-Backed Opportunity and Bank Partnerships**  
   **Q:** How big is the asset-backed opportunity, and has Blackstone secured enough partnerships?  
   **A:** Jonathan Gray explains that the asset-backed market is approximately **$25 trillion**, much larger than the **$5 trillion** leveraged finance market, with private players holding only **1-2%** penetration. He is optimistic about significant growth potential. While Blackstone prefers a **do-it-yourself** approach, they are open to partnerships in specific areas and continue to build origination capabilities. **[BX_3402960_10]**

8. **AI and Data Center Investments**  
   **Q:** How will deployment opportunities in AI and data centers affect fundraising?  
   **A:** Jonathan Gray states that having large-scale pools of capital is a competitive advantage in investing in **data centers**, which have been a lead driver in their **infrastructure business**, delivering **16% net returns** since inception. While it's too early to say if deployment will accelerate fundraising, he feels they have momentum in the U.S., Europe, and Asia, and expects faster deployment and higher returns. **[BX_3402960_14]**

9. **Operating Expenses and Margin Outlook**  
   **Q:** What drove the increase in operating expenses, and how will margins look next year?  
   **A:** Michael Chae attributes the operating expense growth to third-party servicer fees from the **Signature Debt Portfolio** acquisition, placement fees primarily related to **BXPE**, and consulting spend. Adjusting for these items, underlying growth is in the low double digits. He expects a lower rate of growth in **Q4** and feels good about margin stability and potential expansion in **2025**. **[BX_3402960_9]**

10. **Funds Coming Off Fee Holiday and Fundraising Impact**  
    **Q:** How much AUM came off fee holiday, and what does this mean for future fundraising?  
    **A:** Michael Chae notes that new private equity and infrastructure funds came off fee holiday in **Q3**, with foregone fees around **$40 million**. Jonathan Gray mentions that institutional investors are feeling better, and as **DPI** picks up, they expect a better fundraising environment in **2025**, with funds like private equity Asia, Life Sciences, and opportunistic credit in the pipeline. **[BX_3402960_13]**

11. **Wealth Management and Competition**  
    **Q:** How is rising competition impacting Blackstone's wealth management platform?  
    **A:** Stephen Schwarzman emphasizes their **first-mover advantage** with **$250 billion** in AUM and strong relationships with financial advisors. He believes the firm's scale and performance create goodwill, and as base rates come down, the attractiveness of their products increases. Jonathan Gray adds that fewer groups can compete in this space due to shelf space limitations, and their brand and reach are significant advantages. **[BX_3402960_19]**

12. **Insurance Platform Growth**  
    **Q:** Can you comment on growth opportunities in the insurance platform?  
    **A:** Jonathan Gray reports that Blackstone's overall insurance business grew to **$221 billion**, up **24%** year-over-year. Dialogues with insurance companies are exceptionally strong, both in strategic partnerships and **separately managed accounts (SMAs)**. He expresses high optimism for continued growth in this area, emphasizing the value of **185 basis points** of excess return for **A-rated paper** to insurance clients. **[BX_3402960_8]**

3a8b569dd5f28c3c53262b97ede1cd3b608ba6e4332c6d2e32684f5edaa2d7e6

- **Depressed real estate performance fees** were observed in 2023, and management expects a "transitional year" with low realizations in real estate, possibly delaying recovery until **2025 or beyond**.  **[BX_3370829_16]**
- **Industry observers and competitors are cautious** about private equity valuations, suggesting they may require a negative reset, potentially impacting Blackstone's private equity realizations.  **[BX_3370829_17]**
- **Fee rates in the real estate and credit businesses declined** in the fourth quarter due to pressure from lower-fee insurance AUM, which could affect revenue growth.  **[BX_3370829_20]**

f13e286ac4e63db314d4f3495e32b7b739031d4a9b83ca84fd8bfdd799baf546

- **Blackstone anticipates a significant increase in IPO activity in 2025**, which is expected to boost their business through higher realizations and capital market activity.  **[BX_3402960_20]**
- **There's a substantial growth opportunity in the $25 trillion asset-based lending market**, where private players currently hold only 1-2% penetration; Blackstone expects their numbers in this market to grow considerably.  **[BX_3402960_10]**
- **Blackstone's insurance business has expanded to $221 billion, up 24% year-over-year**, with strong momentum in strategic partnerships and separate accounts, indicating continued expansion.  **[BX_3402960_8]**

593056575eafa5cb5b271cf3d1d29cadbd83b038801cfe7f00095e841af840f4

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