Blackstone Group Inc - FORM 8-K - EX-99.2 - January 30, 2014

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Blackstone’s Full Year and Fourth Quarter
2013 Earnings
January 30, 2014
Exhibit 99.2

Blackstone
1
“Our
record
results
in
2013
illustrate
how
our
long-
term
fund
structures
benefit
our
investors,
and
how
our
patient
approach
toward
improving
assets
can
ultimately
drive
better
earnings
growth
and
fund
performance.”
Stephen A. Schwarzman
Chairman and Founder

Blackstone
2
Blackstone’s Record Full Year and Fourth Quarter 2013 Earnings
Blackstone’s
record
$3.5
billion
of
Economic
Net
Income
(“ENI”)
was
driven
by
its
best
year
of
overall
investment performance.
•
ENI
was
$1.5
billion
($1.35/unit)
for
the
quarter
and
$3.5
billion
($3.07/unit)
for
the
full
year.
Full
year
Distributable
Earnings
(“DE”)
continued
to
accelerate
to
$1.9
billion
($1.56/unit),
up
66%.
•
Distributable
Earnings
were
$0.68/unit
for
the
fourth
quarter,
driven
by
Realized
Performance
Fees
and
Realized
Investment
Income
totaling
$694
million.
•
Fund
activity
generated
$1.4
billion
of
Realized
Performance
Fees,
up
126%
for
the
year.
•
Fee
Related
Earnings
rose
to
$745
million
driven
by
18%
growth
in
Fee-Earning
Assets
Under
Management.
GAAP
Net
Income
was
$621
million
for
the
quarter
and
$1.2
billion
for
the
year,
net
of
certain
non-cash
IPO
and
transaction
related
expenses
and
non-controlling
interests,
mainly
inside
ownership.
Total
Assets
Under
Management
(“AUM”)
reached
$266
billion,
up
26%
year-over-year
with
double-digit
increases
across
all
investing
businesses,
through
a
combination
of
strong
inflows
and
appreciation.
•
Gross
asset
inflows
totaled
$17
billion
in
the
fourth
quarter
and
$60
billion
for
the
year.
•
Blackstone’s
funds
returned
$38
billion
(a)
of
capital
to
investors
during
2013.
(a)
See
Total
Assets
Under
Management
–
FY’13
Total
AUM
Rollforward,
notes
(b)
and
(c) (see page 13).

Blackstone
3
Blackstone’s Record Full Year and Fourth Quarter 2013 Earnings
(a)
ENI per Unit is based on the Weighted-Average ENI Adjusted Units.
(b)
DE per Common Unit equals DE Attributable to Common Unitholders divided by Total Common Units Outstanding.
% Change
% Change
(Dollars in Thousands, Except per Unit Data)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Fee Revenues
646,903
$        
648,246
$        
0%
2,186,765
$     
2,367,322
$     
8%
Performance Fees
470,173
          
1,688,219
       
259%
1,593,765
       
3,556,373
       
123%
Investment Income
111,670
          
356,743
          
219%
286,244
          
687,805
          
140%
Total Revenues
1,228,746
$    
2,693,208
$    
119%
4,066,774
$    
6,611,500
$    
63%
Total Expenses
542,733
          
1,109,921
       
105%
2,025,767
       
3,015,461
       
49%
Taxes
16,032
             
41,189
             
157%
45,708
             
82,164
             
80%
Economic Net Income (“ENI”)
669,981
$        
1,542,098
$    
130%
1,995,299
$    
3,513,875
$    
76%
ENI per Unit
(a)
0.59
$              
1.35
$              
129%
1.77
$              
3.07
$              
73%
GAAP Net Income
106,413
$        
621,255
$        
484%
218,598
$        
1,171,202
$     
436%
Fee Related Earnings (“FRE”)
272,604
$        
260,706
$        
(4)%
700,313
$        
745,469
$        
6%
Distributable Earnings (“DE”)
562,337
$        
820,629
$        
46%
1,123,965
$    
1,862,699
$    
66%
DE per Common Unit
(b)
0.45
$              
0.68
$              
51%
0.93
$              
1.56
$              
68%
Distribution per Common Unit
0.42
$              
0.58
$              
38%
0.72
$              
1.34
$              
86%
Total Assets Under Management
210,219,960
$
265,757,630
$
26%
210,219,960
$
265,757,630
$
26%
Fee-Earning Assets Under Management
167,880,440
$
197,981,739
$
18%
167,880,440
$
197,981,739
$
18%

4
Patience Drives Sustainable Outperformance: “Compounding Effect”
Total Revenues and Economic Income
(Dollars in Millions)
Distributable Earnings: “DE”
(Dollars in Millions)
49%
CAGR
53%
Margin
Total Revenues
Economic Income
13%
CAGR
91%
CAGR
Net Realization Activity
Fee Related Earnings
$1,863
Gross Performance Fees and Investment Income
(Dollars in Millions)
Net Performance Fee Receivable
(Dollars in Millions)
(a)
CAGR = Compound Annual Growth Rate.
$724
$1,581
$1,585
$2,041
$3,596
$1,792
$3,141
$3,284
$6,612
2009
2010
2011
2012
2013
$1,863
$1,124
$781
$771
$546
$461
$478
$546
$700
$745
$84
$293
$235
$424
$1,117
2009
2010
2012
2013
2011
$274
$1,475
$1,360
$1,880
$4,244
2009
2010
2011
2012
2013
$749
$1,468
$2,238
$3,400
2010
2011
2012
2013
Blackstone
4
$4,067

Blackstone
5
Walkdown of Financial Metrics
(Dollars in Thousands, Except per Unit Data)
4Q'13
FY'13
Results
Per Unit
(a)
Results
Per Unit
(a)
Base Management Fees
469,092
$         
1,740,807
$     
Advisory Fees
139,158
410,514
Transaction and Other Fees, Net
59,733
206,977
Management Fee Offsets
(43,752)
(72,220)
Interest Income and Other Revenue
28,334
61,670
Compensation
(262,688)
(1,115,640)
Other Operating Expenses
(129,171)
(486,639)
Fee Related Earnings
260,706
$         
0.23
$               
745,469
$         
0.66
$               
Net Realized Incentive Fees
202,707
273,418
Net Realized Carried Interest
252,361
686,757
Net Realized Investment Income
75,156
183,665
Taxes and Related Payables
(68,610)
(156,734)
Equity-Based Compensation
98,309
130,124
Distributable Earnings
820,629
$         
0.68
$               
1,862,699
$     
1.56
$               
Net Unrealized Incentive Fees
(102,736)
(8,277)
Net Unrealized Carried Interest
617,825
1,191,293
Net Unrealized Investment Income
277,268
523,714
Add Back: Related Payables
27,421
74,570
Less: Equity-Based Compensation
(98,309)
(130,124)
Economic Net Income
1,542,098
$     
1.35
$               
3,513,875
$     
3.07
$               
See Appendix – Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metric Components for the calculation of the amounts presented herein that 
are not the respective captions from the Total Segment information (see page 31).
(a)
Fee Related Earnings per Unit is based on DE Units Outstanding; DE per Unit equals DE per Common Unit; and ENI per Unit is based on Weighted-Average ENI Adjusted Units (See
Appendix – Unit Rollforward (see page 32)). FY’13 Fee Related Earnings per Unit and DE per Unit amounts equal the sum of the respective per unit quarterly amounts for 2013.

Blackstone
6
Summary Walkdown of GAAP to Non-GAAP Financial Metrics
GAAP
Economic Income
“EI”
Fee Related Earnings
“FRE”
Distributable Earnings
“DE”
Income Before Provision for Taxes
+
IPO and Acquisition-Related Charges
–
Impact of Consolidated Funds
–
Net Performance Fees
–
Fund Investment Income
+
Net Realized Performance Fees
+
Realized Investment Income
–
Taxes and Related Payables
+   Equity-Based Compensation
=
Distributable Earnings
(Dollars in Millions)
4Q’13
FY’13
$821
=
Economic Income
$1,583
$3,596
=
Fee Related Earnings
$261
$745
$1,863
$1,585
$3,149
See Appendix – Reconciliation of GAAP to Non-GAAP Measures for details (see pages 29-30).

Blackstone
7
Private Equity
28.5%
FY’13
increase
in
fund
carrying
value
(b)
$330 million
FY’13 Realized Performance Fees
(a)
Corporate
Private
Equity
portfolio
includes BCP,
BCOM
and
BEP. Excludes
Tactical
Opportunities,
Other
Funds
(including
fee-paying
co-investment
funds) and
Strategic
Partners.
(b)
Corporate Private Equity portfolio, Tactical Opportunities and Other Funds (including fee-paying co-investment funds). Excludes returns for Strategic Partners.
(c)
MOIC = Multiple of Invested Capital.
(d)
See Additional Disclosures (see page 18).
(e)
“IRR”
is the Internal Rate of Return and refers to Total Net IRR. On a gross basis, BCP IV’s IRR was 50%.
Blackstone
took
advantage
of
improving
equity
markets
to
harvest
gains
driving
Total
Revenues
to
$1.5
billion
and
Economic
Income
to
$715
million,
with
$3.5
billion
of
realizations
during
the
quarter
and
$9.6
billion
for
the year.
•
Completed
the
successful
IPOs
of
Merlin
and
Hilton
during
the
quarter,
creating
a
combined
$5.4
billion
of
public
market
capitalization
for
Blackstone’s
private
equity
investors,
bringing the total market capitalization
across all funds to $17.0
billion.
•
Announced
sales
of
Mivisa,
Apria
and
GeoSouthern
which
will
generate
$2.7
billion
of
proceeds
at
closing.
Strong
performance
by
the
Corporate
Private
Equity
(a)
funds
in 2013 drove Total Revenues up 76% on increased
Performance
Fees
and
Investment
Income.
•
Overall
carrying
value
of
portfolio
assets
(b)
appreciated
11.5%
during
the
quarter
and
28.5%
for
the
full
year.
•
BCP
V
appreciated
34.5%
during
2013
and
is
now
held
at
a
MOIC
(c)
of 1.5x with 46% of fund assets public
(d)
.
•
BCP
IV
appreciated
20.5%
during
2013
and
generated
a
37% net
IRR
(e)
and
a
MOIC
of
2.8x
since
inception.
Invested
and/or
committed
$3.4
billion
of
total
capital
for
the
quarter
and
$5.0
billion
for
the
year.
Fourth
quarter
commitments:
tactical
opportunities
$1.5
billion
($5.1
billion
total);
initial
close
on
latest
Strategic
Partners
secondary
fund
of
funds
with
$688
million
total; Total AUM for Private Equity increased to $65.7 billion.
$632 million
Net Accrued Performance Fees at 4Q’13
% Change
% Change
(Dollars in Thousands)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Fee Revenues
134,857
$         
123,044
$       
(9)%
458,721
$      
479,312
$      
4%
Performance Fees
118,968
           
486,641
         
309%
258,178
         
728,225
         
182%
Investment Income
64,856
             
116,112
         
79%
111,160
         
249,775
         
125%
Total Revenues
318,681
           
725,797
         
128%
828,059
         
1,457,312
     
76%
Compensation
53,963
             
56,370
           
4%
222,709
         
236,120
         
6%
Performance Fee Compensation
26,145
             
276,207
         
956%
62,234
           
381,686
         
513%
Other Operating Expenses
40,499
             
32,767
           
(19)%
130,845
         
124,137
         
(5)%
Total Expenses
120,607
           
365,344
         
203%
415,788
         
741,943
         
78%
Economic Income
198,074
$         
360,453
$      
82%
412,271
$      
715,369
$      
74%
Total AUM
51,002,973
$   
65,675,031
$ 
29%
51,002,973
$ 
65,675,031
$ 
29%
Fee-Earning AUM
37,050,167
$   
42,600,515
$ 
15%
37,050,167
$ 
42,600,515
$ 
15%

Blackstone
8
Real Estate
31.3%
FY’13
increase
in
fund
carrying
value
(a)
$533 million
FY’13 Realized Performance Fees
Revenues
were
up
96%
to
$3.2
billion
for
2013
generating
a
107%
increase
in
Economic
Income
to
$2.1
billion.
Overall
carrying
value
of
Real
Estate
Funds
(a)
appreciated
13.1%
for
the
quarter
and
31.3%
for
the
year.
•
Completed
the
successful
IPOs
of
Hilton,
Extended
Stay
and
Brixmor
during
the
fourth
quarter.
These
investments
represent
$18.7
billion
of
unrealized
equity
value
in
funds
and
fee-paying co-investments.
•
Attractive
pricing
resulted
in
opportunities
to
exit
assets
across
the
portfolio,
generating
record
Realized
Performance
Fees
of
$533
million,
driven
by
private sales
of
stabilized
office
buildings
in
the
U.S.
and
U.K.
Closed
on
a
record
$15.8
billion
of
new
capital
across
the Real
Estate
segment
during
the
year.
•
Fourth
quarter
commitments:
first
Asian
real
estate
fund
$1.5
billion
($3.2
billion
total);
fourth
European
fund
$3.9
billion
($5.6
billion
total)
as
both
approach
their
caps
of
$5.0
billion
and
$6.9
billion
(b)
, respectively.
•
BXMT,
the
commercial
mortgage
REIT,
has
continued
its
strong
growth
since
the
May
re-IPO,
completing
three
offerings
with
a
current
market
capitalization
of
over
$1
billion, up from $61 million at the end of 2012.
Invested
$10.2
billion
of
total
capital
with
an
additional
$1.4
billion
committed
at
year
end,
bringing
the
total
capital
invested
plus
committed
to
a record $11.6
billion
for
2013
as
the
investment
environment
remained
attractive
and
we
were
able
to
capitalize
on
our
unique
global
footprint.
$2.3 billion
Net Accrued Performance Fees at 4Q’13
% Change
% Change
(Dollars in Thousands)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Fee Revenues
167,924
$         
187,081
$      
11%
623,736
$      
646,983
$      
4%
Performance Fees
201,527
           
958,463
         
376%
874,415
         
2,155,582
     
147%
Investment Income
34,442
             
224,926
         
553%
136,177
         
402,560
         
196%
Total Revenues
403,893
           
1,370,470
     
239%
1,634,328
     
3,205,125
     
96%
Compensation
54,201
             
75,625
           
40%
271,122
         
294,222
         
9%
Performance Fee Compensation
66,727
             
333,047
         
399%
240,377
         
724,537
         
201%
Other Operating Expenses
36,946
             
29,698
           
(20)%
123,714
         
116,391
         
(6)%
Total Expenses
157,874
           
438,370
         
178%
635,213
         
1,135,150
     
79%
Economic Income
246,019
$         
932,100
$      
279%
999,115
$      
2,069,975
$   
107%
Total AUM
56,695,645
$   
79,410,788
$ 
40%
56,695,645
$ 
79,410,788
$ 
40%
Fee-Earning AUM
41,931,339
$   
50,792,803
$ 
21%
41,931,339
$ 
50,792,803
$ 
21%
$533 million
FY’13 Realized Performance Fees
$2.3 billion
Net Accrued Performance Fees at 4Q’13
(a)
Blackstone Real Estate Partners (“BREP”) portfolio (including fee-paying co-investment funds).
(b)
The fourth European fund has a commitment cap of €5 billion ($6.9 billion at December 31, 2013).

Blackstone
9
Hedge Fund Solutions
(a)
BAAM’s Principal Solutions Composite, formerly known as BAAM’s Core Funds Composite, does not include BAAM’s long-only equity, long-biased commodities, seed,
strategic opportunities (external investments) and advisory platforms. On a net of fees basis, the BAAM Principal Solutions Composite was up 3.4% for the quarter and 11.4% for the full
year, with a Sharpe ratio of 4.3. On a net of fees basis, the equity long/short strategies were up between 16% and 21%.
Compelling
risk-adjusted
performance
and
new
product
innovation
drove
continued
strong
growth
and
market
share
gains
for
the
world’s
largest
discretionary
allocator
to
hedge
funds.
Record
Total
Revenues
of
$649
million
resulted
in
a
46%
increase
in
Economic
Income
to
$377
million
as strong
investment performance contributed to record assets,
Management
and
Performance
Fees.
BAAM’s
Principal
Solutions
Composite
(a)
was
up
gross
3.8%
for
the
quarter
and
12.8%
for
the
full
year,
with
a
low
volatility
portfolio
leading
to
a
Sharpe
ratio
of
4.7.
The
equity
long/short
strategies
(a)
were
up
between
19%
and
23% gross.
Fee-Earning
AUM
grew
22%
year-over-year
to
$52.9
billion;
January
1
subscriptions
of
$698
million
are
not
included
in
year
end
Fee-Earning
AUM.
$27.8
billion,
or
97%,
of
Incentive
Fee-Earning
AUM,
were
above
their
high
water
mark
and/or
hurdle,
up
from
$18.6
billion
and
78%
a
year
ago,
generating
$215
million
of
Performance
Fees
for
the
full
year.
BAAM’s
Strategic
Opportunities
platform
invested
approximately
$3.4
billion
in
new
special
situation
exposures.
Fourth
quarter
commitments:
BAAM’s
permanent
capital
vehicle
acquiring
general
partner
interests
in
hedge
funds
held
its
initial
close
of
$1.1
billion.
% Change
% Change
(Dollars in Thousands)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Fee Revenues
96,801
$           
114,389
$      
18%
350,939
$      
414,850
$      
18%
Performance Fees
36,524
             
76,881
           
110%
92,475
           
215,453
         
133%
Investment Income
3,784
                 
6,087
             
61%
15,787
           
18,307
           
16%
Total Revenues
137,109
           
197,357
         
44%
459,201
         
648,610
         
41%
Compensation
28,113
             
28,147
           
0%
119,731
         
136,470
         
14%
Performance Fee Compensation
9,766
                 
18,878
           
93%
24,397
           
68,649
           
181%
Other Operating Expenses
16,491
             
15,697
           
(5)%
57,809
           
66,966
           
16%
Total Expenses
54,370
             
62,722
           
15%
201,937
         
272,085
         
35%
Economic Income
82,739
$           
134,635
$      
63%
257,264
$      
376,525
$      
46%
Total AUM
46,092,505
$   
55,657,463
$ 
21%
46,092,505
$ 
55,657,463
$ 
21%
Fee-Earning AUM
43,478,791
$   
52,865,837
$ 
22%
43,478,791
$ 
52,865,837
$ 
22%
12.8%
FY’13 Composite Return
$27.8 billion
Incentive Fee-Earning AUM at 4Q’13
(97% of Total Eligible Incentive Fees)
$5.1 billion
FY’13 Fee-Earning Net Inflows

Blackstone
10
Credit
Totals may not add due to rounding.
(a)
Represents
weighted-average
performance
of
the
assets
of
the
respective
flagship
funds
within
each
strategy.
Hedge
Fund
Strategies
net
returns
were
6.8%
for
4Q’13
and
18.2%
for
FY’13, Mezzanine Funds net returns were 2.8% for 4Q’13 and
17.9%
for
FY’13
and Rescue Lending Funds net returns were 9.8% for 4Q’13 and 24.3% for FY’13.
(b)
Includes business development companies (“BDCs”), closed-end funds, commingled funds, the exchange traded fund and separately managed accounts.
$65 billion
4Q’13 Total AUM
GSO’s
diversified
platform
drove
double-digit
annual
returns across its various
strategies against a challenging environment despite sustained low interest
rates and record level high yield issuance.
A
substantial
increase
in
Performance
Fees,
up
24%,
drove
Total
Revenues
to
$880
million
and
Economic
Income
to
a
record
$358
million
for
the
year.
Despite
realized
proceeds
in
carry
funds
of
$655
million
for
the
quarter
and
$3.2
billion
for
the
year,
Fee-Earning
AUM
grew
14%.
Total
AUM
grew
15%
year-over-year
to
$65.0
billion
due
to
robust
net inflows
throughout the year.
Closed
on
$1.8
billion
during
the
quarter
for
new
product
launches,
reflecting
the
continued
focus
on
growing
organically
by
leveraging
core credit
expertise.
Investment
Performance
(a)
Gross Returns
% Change
% Change
(Dollars in Thousands)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Fee Revenues
117,081
$         
80,873
$         
(31)%
389,304
$      
405,088
$      
4%
Performance Fees
113,154
           
166,234
         
47%
368,697
         
457,113
         
24%
Investment Income
8,043
                 
8,892
             
11%
20,380
           
18,049
           
(11)%
Total Revenues
238,278
           
255,999
         
7%
778,381
         
880,250
         
13%
Compensation
51,853
             
31,802
           
(39)%
182,077
         
186,514
         
2%
Performance Fee Compensation
61,106
             
89,930
           
47%
186,538
         
238,310
         
28%
Other Operating Expenses
18,116
             
29,566
           
63%
84,488
           
96,940
           
15%
Total Expenses
131,075
           
151,298
         
15%
453,103
         
521,764
         
15%
Economic Income
107,203
$         
104,701
$      
(2)%
325,278
$      
358,486
$      
10%
Total AUM
56,428,837
$   
65,014,348
$ 
15%
56,428,837
$ 
65,014,348
$ 
15%
Fee-Earning AUM
45,420,143
$   
51,722,584
$ 
14%
45,420,143
$ 
51,722,584
$ 
14%
4Q'13
FY'13
Hedge Fund
   Strategies
8.5%
24.1%
Mezzanine
   Funds
3.9%
25.6%
Rescue
   Lending Funds
11.8%
33.1%
CLOs
Customized Credit
Strategies
(b)
Mezzanine
Funds
Rescue
Lending
Funds
Hedge Fund
Strategies
$20.6
$8.0
$9.4
$6.4
$20.7

Blackstone
11
Financial Advisory
% Change
% Change
(Dollars in Thousands)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Fee Revenues
130,240
$         
142,859
$      
10%
364,065
$      
421,089
$      
16%
Investment Income (Loss)
545
                    
726
                  
33%
2,740
             
(886)
               
n/m
Total Revenues
130,785
           
143,585
         
10%
366,805
         
420,203
         
15%
Compensation
59,429
             
70,744
           
19%
235,137
         
262,314
         
12%
Other Operating Expenses
19,378
             
21,443
           
11%
84,589
           
82,205
           
(3)%
Total Expenses
78,807
             
92,187
           
17%
319,726
         
344,519
         
8%
Economic Income
51,978
$           
51,398
$         
(1)%
47,079
$         
75,684
$         
61%
Full
year
revenues
were
up
15%
in
2013,
the
second
best
year
for
that
segment,
primarily
from
increased
activity
in
Restructuring, the Park Hill fund placement business and the impact of the first full year of earnings from
Blackstone Capital Markets, which was an active participant in increased public market activity for both equity and debt
issuances.
Blackstone
Capital
Markets
had
a
successful
first
year
as
it
acted
as
an
underwriter
or
arranger
on
26
deals,
including
the
IPOs
for
Brixmor,
Extended
Stay
and
Pinnacle
Foods,
the
IPO
and
secondary
offering
for
SeaWorld, and the IPO
and debt refinancing for Hilton.
Restructuring
had
its
second
best
year
of
revenue
despite
the
improving
economy
and
historically
low
default
rates,
as
the
business
diversified
its
client
base
and
advisory
roles
through
a
number
of
high profile
assignments and continued focus
on non-bankruptcy related assignments.
Park
Hill’s
double-digit
growth
in
placement
fee
revenue
is
a
key
indicator
of
the
value
to
alternative
managers
to
raise
capital
but
is
also
a
reflection
of
continued
positive
trends
in
institutional
commitments
to
alternatives.
Blackstone Advisory Partners revenue was down year-over-year, consistent with the 2013 industry trend of the lowest
announced merger and acquisition dollar volume since 2009, although a meaningful backlog of assignments existed at
year end.

Blackstone
12
Private
Equity
Real
Estate
Hedge
Fund
Solutions
Credit
Totals may not add due to rounding.
(a)
Inflows: include contributions, capital raised, other increases in available capital, purchases and acquisitions.
(b)
Outflows: represent redemptions, client withdrawals and other decreases in available capital.
(c)
Realizations: represent realizations from the disposition of assets.
(d)
Market Activity: gains (losses) on portfolio investments and impact of foreign exchange rate fluctuations.
Fee-Earning AUM by Segment
(Dollars in Billions)
4Q’13 Fee-Earning AUM Rollforward
(Dollars in Millions)
FY’13 Fee-Earning AUM Rollforward
(Dollars in Millions)
Inflows: Strategic Partners (“SP”) acquisition $7.0B; Tactical 
Opportunities $2.7B.
Inflows: CLO launches raised $3.7B in long term funds; capital deployed 
in Mezzanine and Rescue Lending funds ($1.4B); capital raised in Hedge 
Fund Strategies ($1.6B), BDCs ($4.8B) and other vehicles ($3.9B).
Realizations: BCP V $2.6B (including Nielsen ($309M), SeaWorld ($196M),
Pinnacle ($157M)); BCP IV $744M including Vanguard ($286M), TDC
($135M) and TRW ($119M).
Inflows: first Asian fund $3.2B; fourth European fund $5.5B; 
co-investment across funds $1.6B, BXMT $715M and second debt 
strategies fund $1.3B.
Realizations: $6.9B returned to CLO investors; $1.9B returned 
across Mezzanine and Rescue Lending funds.
Net Inflows: $3.3B in customized funds; $1.1B in launch of 
1940 Act mutual fund; January 1, 2014 subscriptions of 
$698M.
Realizations: BREDS $2.1B; BREP VI $603M; BREP V $460M.
 
Fee-Earning Assets Under Management
Private
Real
Hedge Fund
Equity
Estate
Solutions
3Q'13
43,645
$    
44,716
$    
50,830
$    
49,459
$    
188,650
$  
Inflows
(a)
803
7,623
2,165
3,438
14,029
Outflows
(b)
(238)
(233)
(1,541)
(528)
(2,540)
Realizations
(c)
(1,695)
(1,445)
(185)
(1,425)
(4,750)
Net Inflows (Outflows)
(1,130)
5,945
440
1,485
6,739
Market Activity
(d)
86
132
1,596
778
2,592
4Q'13
42,601
$    
50,793
$    
52,866
$    
51,723
$    
197,982
$  
QoQ Increase (Decrease)
(2)%
14%
4%
5%
5%
Credit
Total
Private
Real
Hedge Fund
Equity
Estate
Solutions
4Q'12
37,050
$    
41,931
$    
43,479
$    
45,420
$    
167,880
$  
Inflows
(a)
9,884
13,836
9,098
15,382
48,200
Outflows
(b)
(393)
(1,330)
(3,627)
(2,085)
(7,434)
Realizations
(c)
(4,025)
(3,649)
(348)
(8,872)
(16,894)
Net Inflows
5,466
8,856
5,123
4,426
23,872
Market Activity
(d)
84
5
4,264
1,877
6,230
4Q'13
42,601
$    
50,793
$    
52,866
$    
51,723
$    
197,982
$  
YoY Increase
15%
21%
22%
14%
18%
Credit
Total

Blackstone
13
Private
Equity
Real
Estate
Hedge
Fund
Solutions
Credit
Totals may not add due to rounding.
(a)
Inflows: include contributions, capital raised, other increases in available capital, purchases and acquisitions.
(b)
Outflows: represent redemptions, client withdrawals and other decreases in available capital.
(c)
Realizations: represent realizations from the disposition of assets and the effect of changes in the definition of Total Assets Under Management.
(d)
Market Activity: gains (losses) on portfolio investments and impact of foreign exchange rate fluctuations.
Total AUM by Segment
(Dollars in Billions)
Total Assets Under Management
4Q’13 Total AUM Rollforward
(Dollars in Millions)
FY’13 Total AUM Rollforward
(Dollars in Millions)
Private
Real
Hedge Fund
Equity
Estate
Solutions
4Q'12
51,003
$     
56,696
$     
46,093
$     
56,429
$     
210,220
$   
Inflows
(a)
14,420
       
17,687
       
9,338
          
18,834
       
60,279
       
Outflows
(b)
(653)
            
(1,050)
        
(3,855)
        
(2,811)
        
(8,368)
        
Realizations
(c)
(9,584)
        
(8,298)
        
(448)
            
(11,196)
      
(29,526)
      
Net Inflows
4,183
          
8,339
          
5,035
          
4,828
          
22,384
       
Market Activity
(d)
10,489
       
14,376
       
4,530
          
3,758
          
33,153
       
4Q'13
65,675
$     
79,411
$     
55,657
$     
65,014
$     
265,758
$   
YoY Increase
29%
40%
21%
15%
26%
Credit
Total
Private
Real
Hedge Fund
Equity
Estate
Solutions
3Q'13
62,620
$     
68,964
$     
53,162
$     
63,318
$     
248,065
$   
Inflows
(a)
2,462
          
7,634
          
2,698
          
4,193
          
16,987
       
Outflows
(b)
(67)
              
(374)
            
(1,661)
        
(1,081)
        
(3,182)
        
Realizations
(c)
(3,490)
        
(3,376)
        
(237)
            
(2,843)
        
(9,946)
        
Net Inflows (Outflows)
(1,095)
        
3,884
          
801
             
269
             
3,859
          
Market Activity
(d)
4,150
          
6,562
          
1,695
          
1,427
          
13,834
       
4Q'13
65,675
$     
79,411
$     
55,657
$     
65,014
$     
265,758
$   
QoQ Increase
5%
15%
5%
3%
7%
Credit
Total
Market Activity: driven by successful IPOs of Hilton ($5.5B), Extended 
Stay ($697M) and Brixmor ($600M), as well as improving fundamentals of
Equity Office Properties ($1.0B) and Invitation Homes ($912M).
Market Activity: $4.1B of appreciation in customized and commingled 
funds; BAAM’s Principal Solutions Composite up 12.8% gross.
Market Activity: $1.5B of gains in Hedge Fund Strategies and business
development companies; $1.5B appreciation in carry funds.
Inflows: SP fund acquisition $9.4B, Tactical Opportunites $3.5B;
first close  of next SP fund $688M.
Market Activity: successful IPOs in BCP V of $3.7B (Hilton ($2.0B), 
Pinnacle ($1.1B), SeaWorld($536M)) and BCP IV of $1.0B (Merlin); in 
total, public portfolio appreciation of 49.5% created $6.6B of value.
Inflows in excess of Fee-Earning inflows: largely driven by commitments 
to Rescue Lending funds ($2.1B) and Mezzanine funds ($729M).
Inflows in excess of Fee-Earning inflows: $1.1B initial close of first
permanent capital vehicle acquiring general partner interests in hedge 
funds.

Blackstone
14
4Q’13 Available Capital Summary
Committed
undrawn
capital
(“dry
powder”)
reached
its
highest
level
of
$46.8
billion
at
year
end
on
strong
inflows that easily outpaced $15.3 billion of total capital deployed.
$20.8
billion
of
Total
AUM
was
not
yet
earning
Base
Management
Fees
at
year
end
due
largely
to
fund
structures
where
the
payment
of
Management
Fees
is
triggered
by
investment
of
capital
rather
than
commitment.
Performance
Fee
Eligible
AUM
(a)
was
$181.0
billion
at
year
end,
including
$112.1
billion
currently
earning
Performance Fees.
(a)
Represents invested and to be invested capital at fair value, including closed commitments for funds whose investment period has
not yet commenced, on which performance fees could be earned if
certain hurdles are met.
(b)
Represents (i) committed uninvested capital of the Private Equity and Real Estate drawdown funds, and (ii) committed uninvested capital for the Real Estate debt strategies drawdown funds, the Credit Mezzanine and Rescue Lending funds and
the Hedge Fund Solutions Strategic Alliance Fund and other separately managed accounts.
(c)
Represents illiquid drawdown funds only; excludes marketable vehicles; includes both Fee-Earning (third party) capital and general partner/employee commitments that do not earn fees. Amounts reduced by outstanding
commitments to invest, but for which capital has not been called.
$47 billion Dry Powder
(b)
Credit
Hedge
Fund
Solutions
Private
Equity
Real
Estate
$21 billion Not Yet Earning
Base Management Fees
(c)
$181 billion Performance
Fee Eligible AUM
(a)
Currently Earning
Performance Fees
Invested/Committed Not Yet
Earning Performance Fees
To Be Invested
Credit
Hedge Fund
Solutions
Real
Estate
Private
Equity
Totals may not add due to rounding.

Blackstone
15
On
December
11,
2013,
S&P
upgraded
Blackstone
to
A+,
matching
Fitch’s
rating,
making
Blackstone
the
highest
rated alternative asset manager and one of the highest rated global financial services firms.
At
December
31,
2013,
Blackstone
had
$2.1
billion
in
total
cash,
corporate
treasury
and
liquid
investments
and
$8.3 billion of total net value, or $7.29 per DE unit, up 23% from $5.95 a year ago.
Blackstone’s
Net
Performance
Fees
were
$3.4
billion
at
the
end
of
2013,
up
52%
from
2012,
and
over
two
times
the
amount
from
2011,
reflecting
the
consistent
high
returns
of
a
diverse
set
of
funds
generating
Performance
Fees.
Long-term debt of $1.6
billion from the 2009, 2010 and 2012 bond issuances.
There
are
currently
no
borrowings
outstanding
against
the
$1.1
billion
revolving
credit
facility
expiring
in
2017.
Balance Sheet Highlights
(a)
(a)
Preliminary, excludes the consolidated Blackstone funds. Totals may not add due to rounding.
(b)
Primarily Blackstone investments in Hedge Fund Solutions and non-drawdown Credit.
(c)
Illiquids include Blackstone investments in all drawdown funds in Private Equity, Real Estate and Credit.
(d)
Senior notes of $600 million issued August 2009 maturing on August 15, 2019 (6.625% coupon), $400 million issued September 2010 maturing on March 15, 2021 (5.875% coupon), $400 million issued August 2012 maturing on February 15,
2023 (4.750% coupon) and $250 million issued August 2012 maturing on August 15, 2042 (6.250% coupon), net of $15 million held by
Blackstone.
(Dollars in Millions)
3Q’13
4Q’13
Cash and Cash Equivalents
$
889
$
832
Treasury Cash Management
Strategies
1,137
1,187
Liquid Investments
(b)
151
114
Illiquid Investments
(c)
2,447
2,741
Net Performance Fees
2,769
3,400
Total Net Value
$
7,393
$
8,274
Outstanding Bonds (at par)
(d)
$
1,635
$
1,635
A+/A+
rated by S&P and Fitch
$1.1 billion
undrawn credit revolver with
July 2017 maturity
$2.1 billion
total cash, corporate treasury
and liquid investments
$7.29
Cash and Investments per DE unit
Net Performance
Fees
Total Cash and
Treasury Investments
Illiquids
$8.3 billion
Total Net Value

Blackstone
16
Unitholder Distribution
(a)
Generated $1.56 of Distributable Earnings per common unit during
2013, up 68% year-over-year.
Declared a quarterly distribution of $0.58
per common unit to record holders as of February 10, 2014; payable on
February 18, 2014, bringing the full fiscal year distribution to
$1.34 per common unit, up 86% from 2012.
(a)
A
detailed
description
of
Blackstone’s
distribution
policy
and
the
revised
definition
of
Distributable
Earnings
can
be
found
in
Appendix
–
Definitions
and
Distribution
Policy
(see
page
33).
(b)
DE
before
Certain
Payables
represents
Distributable
Earnings
before
the
deduction
for
the
Payable
Under
Tax
Receivable
Agreement
and
tax
expense
(benefit)
of
wholly-owned
subsidiaries.
(c)
Per
Unit
calculations
are
based
on
Total
Common
Units
Outstanding
(see
Appendix
–
Unit
Rollforward
(see
page
32));
actual
distributions
are
paid
to
applicable
unitholders
as
of
the
record
date.
(d)
Retained
capital
is
withheld
pro-rata
from
common
and
Blackstone
Holdings
Partnership
unitholders.
Common
unitholders’
share
was
$58.8
million
for
4Q’13
and
$125.7
million
for
FY’13.
% Change
(Dollars in Thousands, Except per Unit Data)
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
vs. FY'12
Distributable Earnings (“DE”)
390,912
$  
338,485
$  
312,673
$    
820,629
$    
1,123,965
$ 
1,862,699
$ 
66%
Add: Other Payables Attributable to
   Common Unitholders
2,204
        
28,498
      
17,694
         
58,103
         
91,633
         
106,499
       
16%
DE before Certain Payables
(b)
393,116
    
366,983
    
330,367
       
878,732
       
1,215,598
   
1,969,198
   
62%
Percent to Common Unitholders
51%
51%
52%
52%
49%
51%
DE before Certain Payables Attributable to
   Common Unitholders
199,812
    
187,652
    
170,216
       
455,291
       
595,204
       
1,012,971
   
70%
Less: Other Payables Attributable to
   Common Unitholders
(2,204)
       
(28,498)
     
(17,694)
        
(58,103)
        
(91,633)
        
(106,499)
     
(16)%
DE Attributable to Common Unitholders
197,608
    
159,154
    
152,522
       
397,188
       
503,571
       
906,472
       
80%
DE per Common Unit
(c)
0.34
$       
0.28
$       
0.26
$          
0.68
$          
0.93
$          
1.56
$          
68%
Less: Retained Capital per Unit
(d)
(0.04)
$      
(0.05)
$      
(0.03)
$         
(0.10)
$         
(0.21)
$         
(0.22)
$         
(5)%
Net Cash Available for Distribution per
   Common Unit
(c)
0.30
$       
0.23
$       
0.23
$          
0.58
$          
0.72
$          
1.34
$          
86%
Actual Distribution per Common Unit
(c)
0.30
$       
0.23
$       
0.23
$          
0.58
$          
0.72
$          
1.34
$          
86%
Record Date
Feb 10, 2014
Payable Date
Feb 18, 2014

Blackstone
17
GAAP Statement of Operations
% Change
% Change
(Dollars in Thousands, Except per Unit Data) (Unaudited)
4Q'12
4Q'13
vs. 4Q'12
FY'12
FY'13
vs. FY'12
Revenues
Management and Advisory Fees, Net
601,860
$         
602,034
$         
0%
2,030,693
$      
2,193,985
$      
8%
Performance Fees
Realized Carried Interest
174,168
           
283,846
           
63%
327,422
           
943,958
           
188%
Realized Incentive Fees
273,304
           
334,109
           
22%
301,801
           
464,838
           
54%
Unrealized Carried Interest
207,639
           
1,233,905
        
494%
994,190
           
2,158,010
        
117%
Unrealized Incentive Fees
(185,372)
          
(167,198)
          
10%
(30,361)
            
(22,749)
            
25%
Total Performance Fees
469,739
           
1,684,662
        
259%
1,593,052
        
3,544,057
        
122%
Investment Income
Realized
53,311
              
51,294
              
(4)%
93,963
              
188,644
           
101%
Unrealized
74,325
              
348,523
           
369%
256,231
           
611,664
           
139%
Total Investment Income
127,636
           
399,817
           
213%
350,194
           
800,308
           
129%
Interest and Dividend Revenue
13,173
              
18,248
              
39%
40,354
              
64,511
              
60%
Other
4,705
                 
4,619
                 
(2)%
5,148
                 
10,307
              
100%
Total Revenues
1,217,113
        
2,709,380
        
123%
4,019,441
        
6,613,168
        
65%
Expenses
Compensation and Benefits
Compensation
559,781
           
448,443
           
(20)%
2,091,698
        
1,844,485
        
(12)%
Performance Fee Compensation
Realized Carried Interest
58,573
              
31,485
              
(46)%
96,433
              
257,201
           
167%
Realized Incentive Fees
125,758
           
140,794
           
12%
140,042
           
200,915
           
43%
Unrealized Carried Interest
71,378
              
616,080
           
763%
321,599
           
966,717
           
201%
Unrealized Incentive Fees
(91,965)
            
(70,297)
            
24%
(44,528)
            
(11,651)
            
74%
Total Compensation and Benefits
723,525
           
1,166,505
        
61%
2,605,244
        
3,257,667
        
25%
General, Administrative and Other
131,063
           
128,336
           
(2)%
548,738
           
474,442
           
(14)%
Interest Expense
25,505
              
27,687
              
9%
72,870
              
107,973
           
48%
Fund Expenses
5,586
                 
7,944
                 
42%
33,829
              
26,658
              
(21)%
Total Expenses
885,679
           
1,330,472
        
50%
3,260,681
        
3,866,740
        
19%
Other Income (Loss)
Reversal of Tax Receivable Agreement Liability
-
                     
20,469
              
n/m
-
                     
20,469
              
n/m
Net Gains (Losses) from Fund Investment Activities
(144,267)
          
185,536
           
n/m
256,145
           
381,664
           
49%
Income Before Provision for Taxes
187,167
$         
1,584,913
$      
747%
1,014,905
$      
3,148,561
$      
210%
Provision for Taxes
65,696
              
91,090
              
39%
185,023
           
255,642
           
38%
Net Income
121,471
$         
1,493,823
$      
n/m
829,882
$         
2,892,919
$      
249%
Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
25,151
             
47,445
             
89%
103,598
           
183,315
           
77%
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities
(180,011)
          
149,834
           
n/m
99,959
             
198,557
           
99%
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
169,918
           
675,289
           
297%
407,727
           
1,339,845
        
229%
Net Income Attributable to The Blackstone Group L.P. ("BX")
106,413
$         
621,255
$         
484%
218,598
$         
1,171,202
$      
436%
Net Income per Common Unit, Basic
0.19
$                 
1.05
$                 
453%
0.41
$                 
2.00
$                 
388%
Net Income per Common Unit, Diluted
0.19
$                 
1.04
$                 
447%
0.41
$                 
1.98
$                 
383%

Blackstone
18
Additional Disclosures
How much gain does BCP V need in order to cross its carry threshold, considering it had significant appreciation in 2013?
•
During 2013, BCP V appreciated 34.5% and returned $4.1 billion of capital to investors, resulting in $13.5 billion of
remaining invested capital
(a)
.
•
BCP V is comprised of two fund classes based on the timing of fund closings, BCP V “main fund”
($12.3 billion remaining
invested capital; $18.0
billion fair value; 1.5x MOIC) and BCP V-AC ($1.3 billion remaining invested; $2.2 billion fair
value; 1.7x MOIC) (see page 26).
•
Within these fund classes, the General Partner (“GP”) is subject to equalization such that (a) the GP accrues Performance
Fees when the total Performance Fees for the combined fund classes are positive, and (b) the GP realizes Performance
Fees so long as clawback obligations, if any, for the combined fund classes are fully satisfied.
–
BCP V-AC has crossed its hurdle.  Since the Performance Fees for the combined fund classes are positive, Blackstone
accrued $26 million of net Performance Fees in 4Q’13 (see page 26).
–
On a combined basis, BCP V currently needs a 3% increase in Total Enterprise Value (“TEV”), or $1.3 billion, to begin
the “catch-up”
phase of the 80/20 accrual of carry in favor of Blackstone as the GP.  A year ago, BCP V needed a 12%
increase in TEV (or $5.6 billion) to begin the carry catch-up phase.
What is the breakdown of the Hilton investment across Blackstone’s funds?
Why are Credit’s Fee Revenues down 31% year-over-year in 4Q’13?
•
During the quarter, Credit recorded a Management Fee Offset of $30 million related to Placement Fees reimbursed to
investors in certain drawdown funds from 2Q’11 to 3Q’13 and is not recurring.
(Dollars and Shares in Millions)
Shares Held
Cost Basis
(b)
BREP VI
346
$3,003
BCP V
202
1,755
BREP Co-Investment
161
1,382
BREP International II
43
371
Total Blackstone
752
$6,511
(a)
Remaining invested capital of $13.5 billion excludes Blackstone side-by-side  investments. Total capital  including side-by-side is $14 billion.
(b)
Reflects original equity investment at cost. Includes  Blackstone side-by-side investments.

Appendix
*
*
*
*
*
*
*
*

Blackstone
20
Total Segments
(a)
Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners including, for Private Equity, broken deal expenses.
(b)
Primarily placement fees.
(Dollars in Thousands)
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Revenues
Management and Advisory Fees, Net
Base Management Fees
416,465
$          
408,747
$          
425,674
$           
437,294
$           
469,092
$           
1,591,403
$      
1,740,807
$      
Advisory Fees
128,248
            
67,020
              
120,734
              
83,602
                 
139,158
              
357,417
            
410,514
            
Transaction and Other Fees, Net
(a)
94,069
              
37,974
              
66,464
                 
42,806
                 
59,733
                 
227,119
            
206,977
            
Management Fee Offsets
(b)
(11,476)
             
(9,662)
               
(10,535)
              
(8,271)
                  
(43,752)
              
(40,953)
             
(72,220)
             
Total Management and Advisory Fees, Net
627,306
            
504,079
            
602,337
              
555,431
              
624,231
              
2,134,986
         
2,286,078
         
Performance Fees
Realized Carried Interest
174,168
            
294,170
            
183,288
              
182,654
              
283,846
              
327,422
            
943,958
            
Realized Incentive Fees
272,873
            
24,727
              
74,867
                 
31,238
                 
343,501
              
301,464
            
474,333
            
Unrealized Carried Interest
207,639
            
177,347
            
456,706
              
290,052
              
1,233,905
          
994,190
            
2,158,010
         
Unrealized Incentive Fees
(184,507)
           
107,755
            
4,358
                   
40,992
                 
(173,033)
            
(29,311)
             
(19,928)
             
Total Performance Fees
470,173
            
603,999
            
719,219
              
544,936
              
1,688,219
          
1,593,765
         
3,556,373
         
Investment Income
Realized
37,448
              
38,110
              
54,586
                 
11,492
                 
66,283
                 
95,398
              
170,471
            
Unrealized
74,222
              
96,661
              
42,533
                 
87,680
                 
290,460
              
190,846
            
517,334
            
Total Investment Income
111,670
            
134,771
            
97,119
                 
99,172
                 
356,743
              
286,244
            
687,805
            
Interest Income and Dividend Revenue
14,890
              
14,661
              
15,342
                 
21,539
                 
19,394
                 
46,630
              
70,936
              
Other
4,707
                 
2,143
                 
(1,164)
                  
4,708
                   
4,621
                   
5,149
                 
10,308
              
Total Revenues
1,228,746
        
1,259,653
        
1,432,853
          
1,225,786
          
2,693,208
          
4,066,774
        
6,611,500
        
Expenses
Compensation
247,559
            
266,977
            
306,477
              
279,498
              
262,688
              
1,030,776
         
1,115,640
         
Performance Fee Compensation
Realized Carried Interest
58,573
              
89,437
              
75,910
                 
60,369
                 
31,485
                 
96,433
              
257,201
            
Realized Incentive Fees
125,758
            
10,508
              
35,014
                 
14,599
                 
140,794
              
140,042
            
200,915
            
Unrealized Carried Interest
71,378
              
95,472
              
172,824
              
82,341
                 
616,080
              
321,599
            
966,717
            
Unrealized Incentive Fees
(91,965)
             
44,478
              
3,084
                   
11,084
                 
(70,297)
              
(44,528)
             
(11,651)
             
Total Compensation and Benefits
411,303
            
506,872
            
593,309
              
447,891
              
980,750
              
1,544,322
         
2,528,822
         
Other Operating Expenses
131,430
            
114,444
            
120,152
              
122,872
              
129,171
              
481,445
            
486,639
            
Total Expenses
542,733
            
621,316
            
713,461
             
570,763
             
1,109,921
          
2,025,767
        
3,015,461
        
Economic Income
686,013
$          
638,337
$          
719,392
$           
655,023
$           
1,583,287
$        
2,041,007
$      
3,596,039
$      
Economic Net Income
669,981
$          
628,306
$          
703,240
$           
640,231
$           
1,542,098
$        
1,995,299
$      
3,513,875
$      
Fee Related Earnings
272,604
$          
137,733
$          
168,434
$           
178,596
$           
260,706
$           
700,313
$          
745,469
$          
Distributable Earnings
562,337
$          
390,912
$          
338,485
$           
312,673
$           
820,629
$           
1,123,965
$      
1,862,699
$      
Total Assets Under Management
210,219,960
$  
218,210,672
$  
229,571,741
$    
248,064,888
$    
265,757,630
$    
210,219,960
$  
265,757,630
$  
Fee-Earning Assets Under Management
167,880,440
$  
170,949,347
$  
176,338,947
$    
188,649,817
$    
197,981,739
$    
167,880,440
$  
197,981,739
$  
Weighted Average Fee-Earning AUM
168,328,454
$  
169,551,186
$  
173,706,678
$    
185,628,676
$    
196,309,547
$    
160,130,294
$  
186,133,604
$  
LP Capital Invested
5,690,474
$      
1,784,463
$      
3,634,404
$        
3,378,067
$        
5,382,770
$        
13,898,971
$    
14,179,704
$    
Total Capital Invested
6,200,755
$      
1,840,474
$      
3,757,591
$        
3,536,365
$        
6,115,856
$        
15,614,849
$    
15,250,286
$    

Blackstone
21
Private Equity
(a)
Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners including broken deal expenses.
(b)
Primarily placement fees.
(Dollars in Thousands)
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Revenues
Management Fees, Net
Base Management Fees
89,194
$        
86,246
$        
86,621
$        
95,281
$        
99,998
$        
348,594
$        
368,146
$        
Transaction and Other Fees, Net
(a)
41,339
24,453
38,348
16,052
18,135
100,080
96,988
Management Fee Offsets
(b)
(705)
(480)
(1,950)
(2,080)
(1,173)
(5,926)
(5,683)
Total Management Fees, Net
129,828
110,219
123,019
109,253
116,960
442,748
459,451
Performance Fees
Realized Carried Interest
45,491
139,892
3,899
85,121
101,081
109,797
329,993
Unrealized Carried Interest
73,477
(83,954)
182,926
(86,300)
385,560
148,381
398,232
Total Performance Fees
118,968
55,938
186,825
(1,179)
486,641
258,178
728,225
Investment Income
Realized
10,918
24,162
21,586
11,495
30,783
25,823
88,026
Unrealized
53,938
31,711
21,088
23,621
85,329
85,337
161,749
Total Investment Income
64,856
55,873
42,674
35,116
116,112
111,160
249,775
Interest Income and Dividend Revenue
4,609
2,984
3,251
5,231
4,136
13,556
15,602
Other
420
424
366
1,521
1,948
2,417
4,259
Total Revenues
318,681
225,438
356,135
149,942
725,797
828,059
1,457,312
Expenses
Compensation
53,963
60,203
63,747
55,800
56,370
222,709
236,120
Performance Fee Compensation
Realized Carried Interest
1,507
16,246
877
19,824
2,006
3,679
38,953
Unrealized Carried Interest
24,638
16,619
88,111
(36,198)
274,201
58,555
342,733
Total Compensation and Benefits
80,108
93,068
152,735
39,426
332,577
284,943
617,806
Other Operating Expenses
40,499
29,168
32,178
30,024
32,767
130,845
124,137
Total Expenses
120,607
122,236
184,913
69,450
365,344
415,788
741,943
Economic Income
198,074
$      
103,202
$      
171,222
$      
80,492
$        
360,453
$      
412,271
$        
715,369
$        
Total Assets Under Management
51,002,973
$
52,491,811
$
53,287,294
$
62,619,813
$
65,675,031
$
51,002,973
$  
65,675,031
$  
Fee-Earning Assets Under Management
37,050,167
$
36,785,770
$
36,635,224
$
43,645,106
$
42,600,515
$
37,050,167
$  
42,600,515
$  
Weighted Average Fee-Earning AUM
38,507,697
$
36,907,936
$
36,675,636
$
43,886,763
$
43,290,792
$
38,126,640
$  
43,977,145
$  
LP Capital Invested
1,461,987
$   
276,987
$      
749,290
$      
524,320
$      
1,017,985
$   
3,223,535
$     
2,568,582
$     
Total Capital Invested
1,860,738
$   
291,011
$      
780,339
$      
548,173
$      
1,330,606
$   
4,077,621
$     
2,950,129
$     

Blackstone
22
Real Estate
(a)
Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners.
(b)
Primarily placement fees.
(Dollars in Thousands)
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Revenues
Management Fees, Net
Base Management Fees
140,044
$      
138,346
$      
137,000
$      
136,721
$      
153,115
$      
551,322
$      
565,182
$      
Transaction and Other Fees, Net
(a)
31,181
9,140
19,013
19,205
32,317
85,681
79,675
Management Fee Offsets
(b)
(8,591)
(7,286)
(6,312)
(2,385)
(6,838)
(28,609)
(22,821)
Total Management Fees, Net
162,634
140,200
149,701
153,541
178,594
608,394
622,036
Performance Fees
Realized Carried Interest
91,113
68,773
143,481
93,878
180,641
165,114
486,773
Realized Incentive Fees
13,012
3,092
31,102
3,737
7,931
25,656
45,862
Unrealized Carried Interest
110,059
280,076
259,972
340,406
771,246
683,764
1,651,700
Unrealized Incentive Fees
(12,657)
2,400
(32,279)
2,481
(1,355)
(119)
(28,753)
Total Performance Fees
201,527
354,341
402,276
440,502
958,463
874,415
2,155,582
Investment Income
Realized
18,099
9,534
18,577
928
23,320
45,302
52,359
Unrealized
16,343
60,303
30,636
57,656
201,606
90,875
350,201
Total Investment Income
34,442
69,837
49,213
58,584
224,926
136,177
402,560
Interest Income and Dividend Revenue
5,038
4,298
4,396
6,060
6,809
14,448
21,563
Other
252
(133)
(274)
2,113
1,678
894
3,384
Total Revenues
403,893
568,543
605,312
660,800
1,370,470
1,634,328
3,205,125
Expenses
Compensation
54,201
69,459
73,792
75,346
75,625
271,122
294,222
Performance Fee Compensation
Realized Carried Interest
35,118
25,863
55,005
38,942
29,027
62,418
148,837
Realized Incentive Fees
6,617
1,724
15,733
1,919
4,502
13,060
23,878
Unrealized Carried Interest
31,590
89,057
78,604
99,323
299,853
165,482
566,837
Unrealized Incentive Fees
(6,598)
1,034
(16,329)
615
(335)
(583)
(15,015)
Total Compensation and Benefits
120,928
187,137
206,805
216,145
408,672
511,499
1,018,759
Other Operating Expenses
36,946
28,462
27,617
30,614
29,698
123,714
116,391
Total Expenses
157,874
215,599
234,422
246,759
438,370
635,213
1,135,150
Economic Income
246,019
$      
352,944
$      
370,890
$      
414,041
$      
932,100
$      
999,115
$      
2,069,975
$  
Total Assets Under Management
56,695,645
$
59,475,215
$
63,919,906
$
68,964,455
$
79,410,788
$
56,695,645
$
79,410,788
$
Fee-Earning Assets Under Management
41,931,339
$
42,140,507
$
43,635,493
$
44,715,985
$
50,792,803
$
41,931,339
$
50,792,803
$
Weighted Average Fee-Earning AUM
40,164,238
$
41,682,661
$
42,523,604
$
44,163,396
$
50,568,609
$
37,730,563
$
45,326,937
$
LP Capital Invested
3,876,701
$   
1,175,775
$   
2,213,668
$   
2,365,224
$   
3,986,610
$   
8,218,175
$   
9,741,277
$   
Total Capital Invested
3,990,620
$   
1,202,736
$   
2,274,853
$   
2,438,725
$   
4,333,419
$   
8,515,483
$   
10,249,733
$

Blackstone
23
Hedge Fund Solutions
(a)
Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners.
(b)
Primarily placement fees.
(Dollars in Thousands)
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Revenues
Management Fees, Net
Base Management Fees
92,777
$        
92,791
$        
100,113
$      
103,392
$      
113,025
$      
346,210
$      
409,321
$      
Transaction and Other Fees, Net
(a)
27
4
61
295
263
188
623
Management Fee Offsets
(b)
(322)
(324)
(714)
(1,200)
(1,149)
(1,414)
(3,387)
Total Management Fees, Net
92,482
92,471
99,460
102,487
112,139
344,984
406,557
Performance Fees
Realized Incentive Fees
76,323
13,709
13,845
5,320
174,861
83,433
207,735
Unrealized Incentive Fees
(39,799)
55,501
20,989
29,208
(97,980)
9,042
7,718
Total Performance Fees
36,524
69,210
34,834
34,528
76,881
92,475
215,453
Investment Income (Loss)
Realized
5,201
852
13,668
(598)
13,691
7,270
27,613
Unrealized
(1,417)
3,913
(12,054)
6,439
(7,604)
8,517
(9,306)
Total Investment Income
3,784
4,765
1,614
5,841
6,087
15,787
18,307
Interest Income and Dividend Revenue
718
1,216
1,878
2,523
1,988
2,139
7,605
Other
3,601
85
(254)
595
262
3,816
688
Total Revenues
137,109
167,747
137,532
145,974
197,357
459,201
648,610
Expenses
Compensation
28,113
33,868
36,844
37,611
28,147
119,731
136,470
Performance Fee Compensation
Realized Incentive Fees
20,985
5,022
5,116
1,954
53,701
23,080
65,793
Unrealized Incentive Fees
(11,219)
19,836
7,666
10,177
(34,823)
1,317
2,856
Total Compensation and Benefits
37,879
58,726
49,626
49,742
47,025
144,128
205,119
Other Operating Expenses
16,491
15,159
16,535
19,575
15,697
57,809
66,966
Total Expenses
54,370
73,885
66,161
69,317
62,722
201,937
272,085
Economic Income
82,739
$        
93,862
$        
71,371
$        
76,657
$        
134,635
$      
257,264
$      
376,525
$      
Total Assets Under Management
46,092,505
$
48,187,865
$
50,128,028
$
53,162,174
$
55,657,463
$
46,092,505
$
55,657,463
$
Fee-Earning Assets Under Management
43,478,791
$
45,585,454
$
47,572,465
$
50,829,734
$
52,865,837
$
43,478,791
$
52,865,837
$
Weighted Average Fee-Earning AUM
43,709,019
$
44,999,899
$
46,783,727
$
48,933,335
$
51,794,518
$
41,698,402
$
48,431,911
$
LP Capital Invested
-
$               
55,849
$        
118,323
$      
248,422
$      
8,681
$          
200,841
$      
431,275
$      
Total Capital Invested
-
$               
59,000
$        
125,000
$      
262,309
$      
8,681
$          
212,752
$      
454,990
$      

Blackstone
24
Credit
(a)
Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners.
(b)
Primarily placement fees.
(Dollars in Thousands)
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Revenues
Management Fees, Net
Base Management Fees
94,450
$        
91,364
$        
101,940
$      
101,900
$      
102,954
$      
345,277
$      
398,158
$      
Transaction and Other Fees, Net
(a)
21,480
4,374
9,002
7,058
8,152
40,875
28,586
Management Fee Offsets
(b)
(1,858)
(1,572)
(1,559)
(2,606)
(34,592)
(5,004)
(40,329)
Total Management Fees, Net
114,072
94,166
109,383
106,352
76,514
381,148
386,415
Performance Fees
Realized Carried Interest
37,564
85,505
35,908
3,655
2,124
52,511
127,192
Realized Incentive Fees
183,538
7,926
29,920
22,181
160,709
192,375
220,736
Unrealized Carried Interest
24,103
(18,775)
13,808
35,946
77,099
162,045
108,078
Unrealized Incentive Fees
(132,051)
49,854
15,648
9,303
(73,698)
(38,234)
1,107
Total Performance Fees
113,154
124,510
95,284
71,085
166,234
368,697
457,113
Investment Income (Loss)
Realized
2,593
3,328
901
496
(627)
15,611
4,098
Unrealized
5,450
1,093
4,381
(1,042)
9,519
4,769
13,951
Total Investment Income (Loss)
8,043
4,421
5,282
(546)
8,892
20,380
18,049
Interest Income and Dividend Revenue
2,480
4,547
4,071
5,288
4,240
9,330
18,146
Other
529
1,828
(1,063)
(357)
119
(1,174)
527
Total Revenues
238,278
229,472
212,957
181,822
255,999
778,381
880,250
Expenses
Compensation
51,853
45,521
55,941
53,250
31,802
182,077
186,514
Performance Fee Compensation
Realized Carried Interest
21,948
47,328
20,028
1,603
452
30,336
69,411
Realized Incentive Fees
98,156
3,762
14,165
10,726
82,591
103,902
111,244
Unrealized Carried Interest
15,150
(10,204)
6,109
19,216
42,026
97,562
57,147
Unrealized Incentive Fees
(74,148)
23,608
11,747
292
(35,139)
(45,262)
508
Total Compensation and Benefits
112,959
110,015
107,990
85,087
121,732
368,615
424,824
Other Operating Expenses
18,116
20,962
22,961
23,451
29,566
84,488
96,940
Total Expenses
131,075
130,977
130,951
108,538
151,298
453,103
521,764
Economic Income
107,203
$      
98,495
$        
82,006
$        
73,284
$        
104,701
$      
325,278
$      
358,486
$      
Total Assets Under Management
56,428,837
$
58,055,781
$
62,236,513
$
63,318,446
$
65,014,348
$
56,428,837
$
65,014,348
$
Fee-Earning Assets Under Management
45,420,143
$
46,437,616
$
48,495,765
$
49,458,992
$
51,722,584
$
45,420,143
$
51,722,584
$
Weighted Average Fee-Earning AUM
45,947,499
$
45,960,690
$
47,723,711
$
48,645,182
$
50,655,628
$
42,574,690
$
48,397,611
$
LP Capital Invested
351,786
$      
275,852
$      
553,123
$      
240,101
$      
369,494
$      
2,256,420
$   
1,438,570
$   
Total Capital Invested
349,397
$      
287,727
$      
577,399
$      
287,158
$      
443,150
$      
2,808,993
$   
1,595,434
$   

Blackstone
25
Financial Advisory
(Dollars in Thousands)
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Revenues
Advisory Fees
128,248
$     
67,020
$       
120,734
$       
83,602
$         
139,158
$       
357,417
$     
410,514
$     
Transaction and Other Fees, Net
42
                  
3
                    
40
                    
196
                  
866
                  
295
               
1,105
            
Total Advisory and Transaction Fees
128,290
       
67,023
         
120,774
         
83,798
           
140,024
         
357,712
       
411,619
       
Investment Income (Loss)
Realized
637
               
234
               
(146)
                 
(829)
                 
(884)
                 
1,392
            
(1,625)
          
Unrealized
(92)
                 
(359)
              
(1,518)
            
1,006
              
1,610
              
1,348
            
739
               
Total Investment Income (Loss)
545
               
(125)
              
(1,664)
            
177
                  
726
                  
2,740
            
(886)
              
Interest Income and Dividend Revenue
2,045
            
1,616
            
1,746
              
2,437
              
2,221
              
7,157
            
8,020
            
Other
(95)
                 
(61)
                 
61
                    
836
                  
614
                  
(804)
              
1,450
            
Total Revenues
130,785
       
68,453
         
120,917
         
87,248
           
143,585
         
366,805
       
420,203
       
Expenses
Compensation
59,429
         
57,926
         
76,153
           
57,491
           
70,744
           
235,137
       
262,314
       
Total Compensation and Benefits
59,429
         
57,926
         
76,153
           
57,491
           
70,744
           
235,137
       
262,314
       
Other Operating Expenses
19,378
         
20,693
         
20,861
           
19,208
           
21,443
           
84,589
         
82,205
         
Total Expenses
78,807
         
78,619
         
97,014
           
76,699
           
92,187
           
319,726
       
344,519
       
Economic Income (Loss)
51,978
$       
(10,166)
$      
23,903
$         
10,549
$         
51,398
$         
47,079
$       
75,684
$       

Blackstone
26
Net
Accrued
Performance
Fees
and
Carried
Interest
Status
(a)
(a)
Preliminary. Totals may not add due to rounding.
(b)
Net Accrued Performance Fees are presented net of performance fee compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized Performance Fees are included in Distributable
Earnings. When these
fees are received, the receivable is reduced without further impacting Distributable Earnings.
(c)
Per Unit calculations are based on quarter end Distributable Earnings Units Outstanding (see Appendix –
Unit Rollforward (see page 32)).
(d)
Represents the required increase in equity at the fund level (excluding side-by-side investments) for funds with expired investment periods that
are currently not generating performance fees.
Blackstone
had
$3.4
billion
of
accrued
performance
fees,
net
of
performance
fee
compensation
and
distributed
Realized Performance Fees, at the end of 2013.
$3.4 billion
Net Accrued Performance Fees at 4Q’13
$3.00 per unit
(c)
Net Accrued Performance Fees at 4Q’13
52% increase
in Net Accrued Performance Fees since 4Q’12
Carried Interest Status (excl. SBS)
(d)
Net Accrued Performance Fees
(b)
Remaining Capital
Gain to Cross Carry Threshold
Change vs.
% Change in
% Change in
(Dollars in Millions, Except per Unit Data)
3Q'13
4Q'13
Per Unit
(c)
3Q'13
(Dollars / Euros In Millions)
Fair
Value
Cost
Amount
TEV
Equity Value
Private Equity
Private Equity
BCP IV Carried Interest
506
$               
424
$               
0.37
$              
(82)
$                 
BCP V
17,968
$      
12,277
$      
1,596
$        
4%
9%
BCP V Carried Interest
-
26
0.02
26
BCP V-AC
2,203
1,264
(344)
(9)%
(16)%
BCP VI Carried Interest
15
108
0.10
93
BEP Carried Interest
62
65
0.06
3
Real Estate
Tactical Opportunities Carried Interest
5
8
0.01
3
BREP Int'l II
1,347
€
1,127
€
880
€
20%
65%
SP V Carried Interest
1
1
0.00
-
Total Private Equity
589
632
0.56
43
Real Estate
BREP V Carried Interest
616
603
0.53
(13)
BREP VI Carried Interest
857
1,264
1.11
407
BREP VII Carried Interest
248
293
0.26
45
BREP Int'l I Carried Interest
2
2
0.00
-
BREP Europe III Carried Interest
128
155
0.14
27
BREP Asia Carried Interest
-
4
0.00
4
BREDS Carried Interest
21
12
0.01
(9)
BREDS Incentive Fees
2
4
0.00
2
Asia Platform Incentive Fees
16
10
0.01
(6)
Total Real Estate
1,890
2,347
2.07
457
Hedge Fund Solutions
Incentive Fees
75
144
0.13
69
Total Hedge Fund Solutions
75
144
0.13
69
Credit
Carried Interest
143
173
0.15
30
Incentive Fees
72
104
0.09
32
Total Credit
215
277
0.24
62
Total Blackstone
Carried Interest
2,604
3,138
2.76
534
Incentive Fees
165
262
0.23
97
Net Accrued Performance Fees
2,769
$            
3,400
$            
3.00
$              
631
$               
Memo: Net Realized Performance Fees
64
$                 
261
$              
0.23
$             
197
$              

Blackstone
27
Investment Records as of December 31, 2013
(a)
Notes on next page.
Committed
Available
Unrealized Investments
Realized Investments
Total Investments
Net IRRs (d)
(Dollars in Thousands, Except Where Noted)
Capital
Capital (b)
Value
MOIC (c)
% Public
Value
MOIC (c)
Value
MOIC (c)
Realized
Total
Private Equity
BCP I (Oct 1987 / Oct 1993)
859,081
$              
-
$               
-
$               
n/a
-
1,741,738
$   
2.6x
1,741,738
$   
2.6x
19%
19%
BCP II (Oct 1993 / Aug 1997)
1,361,100
-
-
n/a
-
3,256,819
2.5x
3,256,819
2.5x
32%
32%
BCP III (Aug 1997 / Nov 2002)
3,967,422
-
-
n/a
-
9,184,688
2.3x
9,184,688
2.3x
14%
14%
BCOM (Jun 2000 / Jun 2006)
2,137,330
199,298
225,356
1.1x
-
2,619,040
1.4x
2,844,396
1.3x
7%
5%
BCP IV (Nov 2002 / Dec 2005)
6,773,138
234,535
4,122,422
2.1x
66%
17,167,004
3.1x
21,289,426
2.8x
46%
37%
BCP V (Dec 2005 / Jan 2011)
21,024,025
1,459,100
21,730,495
1.6x
46%
7,982,798
1.3x
29,713,293
1.5x
5%
7%
BCP VI (Jan 2011 / Jan 2017)
15,176,699
10,440,379
5,149,585
1.3x
25%
467,034
1.5x
5,616,619
1.4x
26%
11%
BEP (Aug 2011 / Aug 2017)
2,423,572
1,462,591
1,324,309
2.0x
59%
218,847
1.4x
1,543,156
1.9x
20%
55%
Total Corporate Private Equity
53,722,367
$         
13,795,903
$
32,552,167
$
1.6x
45%
42,637,968
$
2.1x
75,190,135
$
1.8x
20%
16%
Tactical Opportunities
4,906,599
3,623,819
1,419,729
1.1x
8%
112,200
1.1x
1,531,929
1.1x
18%
14%
Strategic Partners
13,078,843
3,328,622
5,964,811
1.6x
n/a
9,280,114
1.3x
15,244,925
1.4x
n/a
14%
Other Funds and Co-Invest (e)
1,210,951
150,858
518,118
0.6x
50%
20,890
1.0x
539,008
0.6x
n/m
n/m
Total Private Equity
72,918,760
$         
20,899,202
$
40,454,825
$
1.5x
42%
52,051,172
$
1.9x
92,505,997
$
1.7x
20%
15%
Real Estate
Dollar
Pre-BREP
140,714
$              
-
$               
-
$               
n/a
-
345,190
$      
2.5x
345,190
$      
2.5x
33%
33%
BREP I (Sep 1994 / Oct 1996)
380,708
-
-
n/a
-
1,327,708
2.8x
1,327,708
2.8x
40%
40%
BREP II (Oct 1996 / Mar 1999)
1,198,339
-
-
n/a
-
2,531,613
2.1x
2,531,613
2.1x
19%
19%
BREP III (Apr 1999 / Apr 2003)
1,522,708
-
2,161
0.1x
-
3,325,133
2.4x
3,327,294
2.4x
22%
21%
BREP IV (Apr 2003 / Dec 2005)
2,198,694
-
1,394,262
1.0x
-
3,091,303
2.4x
4,485,565
1.6x
66%
14%
BREP V (Dec 2005 / Feb 2007)
5,538,579
243,946
7,144,648
1.8x
-
3,496,273
2.0x
10,640,921
1.8x
29%
10%
BREP VI (Feb 2007 / Aug 2011)
11,057,280
656,849
18,726,900
2.1x
62%
3,562,643
2.1x
22,289,543
2.1x
24%
14%
BREP VII (Aug 2011 / Feb 2017)
14,512,884
5,771,958
10,775,482
1.4x
3%
1,467,953
1.6x
12,243,435
1.4x
43%
30%
Total Global Real Estate Funds
36,549,906
$         
6,672,753
$   
38,043,453
$
1.7x
31%
19,147,816
$
2.1x
57,191,269
$
1.8x
27%
17%
Euro
BREP Int'l (Jan 2001 / Sep 2005)
824,172
€
-
€
104,405
€
1.2x
-
1,235,480
€
2.2x
1,339,885
€
2.0x
25%
23%
BREP Int'l II (Sep 2005 / Jun 2008)
1,627,954
80,188
1,464,376
1.2x
45%
198,004
1.2x
1,662,380
1.2x
3%
2%
BREP Europe III (Jun 2008 / Dec 2013)
3,203,848
633,457
3,590,801
1.5x
-
491,882
1.8x
4,082,683
1.5x
26%
17%
BREP Europe IV (Sep 2013 / Mar 2019)
4,138,214
3,699,039
482,005
1.0x
-
-
n/a
482,005
1.0x
n/a
4%
Total Euro Real Estate Funds
9,794,188
€
4,412,684
€
5,641,587
€
1.3x
12%
1,925,366
€
1.9x
7,566,953
€
1.4x
24%
10%
BREP Co-Investment (f)
5,160,385
$           
-
$               
8,424,422
$   
1.8x
69%
700,979
$      
1.5x
9,125,401
$   
1.8x
18%
17%
BREP Asia (Jun 2013 / Dec 2017)
3,247,727
2,695,256
669,067
1.1x
-
-
n/a
669,067
1.1x
n/a
56%
Total Real Estate
57,682,409
$         
15,432,082
$
54,719,266
$
1.6x
34%
22,319,606
$
2.1x
77,038,872
$
1.8x
26%
16%
BREDS I
2,840,704
$           
452,965
$      
1,759,288
$   
1.2x
-
2,346,502
$   
1.3x
4,105,790
$   
1.2x
15%
12%
BREDS II
3,334,676
2,247,733
1,132,398
1.0x
-
-
n/a
1,132,398
1.0x
n/a
11%
Total BREDS (g)
6,175,380
$           
2,700,698
$   
2,891,686
$   
1.1x
-
2,346,502
$   
1.3x
5,238,188
$   
1.2x
15%
12%
Credit (h)
Mezzanine
6,120,000
$           
3,047,070
$   
3,061,806
$   
1.3x
-
3,959,095
$   
1.6x
7,020,901
$   
1.5x
n/a
19%
Rescue Lending
8,378,143
5,313,337
4,249,064
1.5x
-
1,687,866
1.2x
5,936,930
1.4x
n/a
18%
Total Credit
14,498,143
$         
8,360,407
$   
7,310,870
$   
1.4x
-
5,646,961
$   
1.4x
12,957,831
$
1.4x

Blackstone
28
Investment
Records
as
of
December
31,
2013
–
Notes
The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P.
n/m
Not meaningful.
n/a
Not applicable.
(a)
Preliminary.
(b)
Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and
expired or recallable capital, less invested capital. This amount is not reduced by outstanding commitments to investments.
(c)
Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Carried Interest,
divided by invested capital.
(d)
Net Internal Rate of Return (“IRR”) represents the annualized inception to December 31, 2013 IRR on total invested capital
based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest. Net
IRRs for BREP Europe IV, BREP Asia and BREDS II are calculated from commencement of their respective investment periods
which, being less than one year, are not annualized.
(e)
Returns for Other Funds and Co-Invest are not meaningful as these funds have no or little realizations.
(f)
BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated
by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses
and Carried Interest.
(g)
Excludes Capital Trust drawdown funds.
(h)
The Total Investments MOIC for Mezzanine and Rescue Lending Funds, excluding recycled capital during the investment
period, was 1.9x and 1.5x, respectively.

Blackstone
29
Reconciliation of GAAP to Non-GAAP Measures
Notes on next page.
(Dollars in Thousands)
Net Income Attributable to The Blackstone Group L.P.
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities
Net Income Attributable to Redeemable Non-Controlling
Interests in Consolidated Entities
Net Income
Provision for Taxes
Income Before Provision for Taxes
IPO
and
Acquisition-Related
Charges
(a)
Amortization
of
Intangibles
(b)
(Income)
Loss
Associated
with
Non-Controlling
Interests
in
(Income)
Loss
of
Economic Income
Taxes
(d)
Economic Net Income
Taxes
(d)
Performance
Fee
Adjustment
(e)
Investment
Income
(Loss)
Adjustment
(f)
Performance
Fee
Compensation
and
Benefits
Adjustment
(h)
Fee Related Earnings
Realized
Performance
Fees
(i)
Realized
Investment
Income
(j)
Adjustment
Related
to
Realized
Investment
Income
(Loss) -
Blackstone's
Treasury
Cash
Management
Strategies
(k)
Taxes
and
Related
Payables
Including
Payable
Under
Tax
Receivable
Agreement
(l)
Equity-Based
Compensation
(m)
Distributable Earnings
Interest Expense
Taxes
and
Related
Payables
Including
Payable
Under
Tax
Receivable
Agreement
(l)
Depreciation and Amortization
Adjusted EBITDA
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
106,413
$  
167,635
$    
211,148
$    
171,164
$    
621,255
$    
218,598
$    
1,171,202
$
169,918
207,090
249,134
208,332
675,289
407,727
1,339,845
(180,011)
(9,452)
27,944
30,231
149,834
99,959
198,557
25,151
62,316
22,366
51,188
47,445
103,598
183,315
121,471
$  
427,589
$    
510,592
$    
460,915
$    
1,493,823
$
829,882
$    
2,892,919
$
65,696
50,993
56,082
57,477
91,090
185,023
255,642
187,167
$  
478,582
$    
566,674
$    
518,392
$    
1,584,913
$
1,014,905
$
3,148,561
$
317,499
186,962
178,706
190,525
166,514
1,079,511
722,707
26,487
25,657
24,322
27,525
29,139
150,148
106,643
154,860
(52,864)
(50,310)
(81,419)
(197,279)
(203,557)
(381,872)
686,013
$  
638,337
$    
719,392
$    
655,023
$    
1,583,287
$
2,041,007
$
3,596,039
$
(16,032)
(10,031)
(16,152)
(14,792)
(41,189)
(45,708)
(82,164)
669,981
$  
628,306
$    
703,240
$    
640,231
$    
1,542,098
$
1,995,299
$
3,513,875
$
16,032
10,031
16,152
14,792
41,189
45,708
82,164
(470,173)
(603,999)
(719,219)
(544,936)
(1,688,219)
(1,593,765)
(3,556,373)
(111,670)
(134,771)
(97,119)
(99,172)
(356,743)
(286,244)
(687,805)
4,690
(1,729)
(21,452)
(712)
4,319
25,769
(19,574)
163,744
239,895
286,832
168,393
718,062
513,546
1,413,182
272,604
$  
137,733
$    
168,434
$    
178,596
$    
260,706
$    
700,313
$    
745,469
$    
262,710
218,952
147,231
138,924
455,068
392,411
960,175
37,448
38,110
54,586
11,492
66,283
95,398
170,471
(6,444)
(3,820)
1,469
6,672
8,873
(21,872)
13,194
(72,553)
(12,148)
(44,220)
(31,756)
(68,610)
(132,325)
(156,734)
68,572
12,085
10,985
8,745
98,309
90,040
130,124
562,337
$  
390,912
$    
338,485
$    
312,673
$    
820,629
$    
1,123,965
$
1,862,699
$
24,585
26,069
25,960
25,268
26,607
69,152
103,904
72,553
12,148
44,220
31,756
68,610
132,325
156,734
12,681
8,643
9,116
8,956
8,726
42,235
35,441
672,156
$  
437,772
$    
417,781
$    
378,653
$    
924,572
$    
1,367,677
$
2,158,778
$
Consolidated
Entities
(c)
Investment
Income
(Loss)
-
Blackstone’s
Treasury
Cash
Management
Strategies
(g)

Blackstone
30
Reconciliation
of
GAAP
to
Non-GAAP
Measures
–
Notes
Note:
See Appendix –
Definitions and Distribution Policy (see page 33).
(a)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which
include principally equity-based compensation charges associated with Blackstone’s initial public offering and long-term retention
programs outside of annual deferred compensation and other corporate actions.
(b)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which
are associated with Blackstone’s initial public offering and other corporate actions.
(c)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes the amount of (Income) Loss Associated with Non-
Controlling Interests in (Income) Loss of Consolidated Entities and includes the amount of Management Fee Revenues associated
with Consolidated CLO Entities.
(d)
Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes.
(e)
This adjustment removes from EI the total segment amount of Performance Fees.
(f)
This adjustment removes from EI the total segment amount of Investment Income (Loss).
(g)
This adjustment represents the realized and unrealized gain on Blackstone’s Treasury Cash Management Strategies which are a
component of Investment Income (Loss) but included in Fee Related Earnings.
(h)
This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related
to Performance Fees.
(i)
Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstone’s profit
sharing plans related thereto.
(j)
Represents the adjustment for Blackstone’s Investment Income (Loss) -
Realized.
(k)
Represents the elimination of Realized Investment Income attributable to Blackstone’s Treasury Cash Management Strategies
which is a component of both Fee Related Earnings and Realized Investment Income (Loss).
(l)
Taxes and Related Payables Including Payable Under Tax Receivable Agreement represent the current tax provision (benefit)
calculated on Income (Loss) Before Provision (Benefit) for Taxes
and the Payable Under Tax Receivable Agreement.
(m)
Represents equity-based award expense included in EI.

Blackstone
31
Walkdown of Financial Metrics –
Calculation of Certain Non-GAAP Financial Metric Components
Unless otherwise noted, all amounts are the respective captions from the Total Segment information.
(a)
See Appendix -
Reconciliation of GAAP to Non-GAAP Measures for this adjustment (see pages 29-30).
(b)
Represents equity-based award expense included in Economic Income.
(c)
Represents tax-related payables including the Payable Under Tax Receivable Agreement.
(Dollars in Thousands)
4Q'13
FY'13
Interest Income and Dividend Revenue
19,394
$       
70,936
$       
Other Revenue
4,621
10,308
Investment
Income
(Loss)
-
Blackstone's
Treasury
Cash
Management
Strategies
(a)
4,319
(19,574)
Interest Income and Other Revenue
28,334
$       
61,670
$       
Realized Incentive Fees
343,501
474,333
Less: Realized Incentive Fee Compensation
(140,794)
(200,915)
Net Realized Incentive Fees
202,707
$    
273,418
$    
Realized Carried Interest
283,846
943,958
Less: Realized Carried Interest Compensation
(31,485)
(257,201)
Net Realized Carried Interest
252,361
$    
686,757
$    
Realized Investment Income
66,283
170,471
Adjustment
Related
to
Realized
Investment
Income
(Loss)
-
Blackstone's
Treasury
Cash
Management
Strategies
(a)
8,873
13,194
Net Realized Investment Income
75,156
$       
183,665
$    
Equity-Based Compensation
(b)
98,309
$       
130,124
$    
Unrealized Incentive Fees
(173,033)
(19,928)
Less: Unrealized Incentive Fee Compensation
70,297
11,651
Net Unrealized Incentive Fees
(102,736)
$   
(8,277)
$        
Unrealized Carried Interest
1,233,905
2,158,010
Less: Unrealized Carried Interest Compensation
(616,080)
(966,717)
Net Unrealized Carried Interest
617,825
$    
1,191,293
$ 
Unrealized Investment Income
290,460
517,334
Less:
Investment
Income
(Loss)
-
Blackstone's
Treasury
Cash
Management
Strategies
(a)
(4,319)
19,574
Less:
Adjustment
Related
to
Realized
Investment
Income
(Loss)
-
Blackstone's
Treasury
Cash
Management
Strategies
(a)
(8,873)
(13,194)
Net Unrealized Investment Income
277,268
$    
523,714
$    
Related Payables
(c)
27,421
$       
74,570
$       

Blackstone
32
Unit Rollforward
(a)
Common
Unitholders
receive
Tax
Benefits
from
deductions
taken
by
Blackstone’s
corporate
tax
paying
subsidiaries
and
bear
responsibility
for
the
deduction
from
Distributable
Earnings
of
thePayable
Under
Tax
Receivable
Agreement
and
certain
other
tax-related
payables.
(b)
Excludes units which are not entitled to distributions.
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
FY'12
FY'13
Total GAAP Weighted-Average Common Units Outstanding -
Basic
553,989,577
582,322,183
583,843,094
589,643,844
592,129,570
533,703,606
587,018,828
Adjustments:
Weighted-Average Unvested Deferred Restricted Common Units
2,430,014
3,377,716
2,919,959
3,276,951
4,536,624
4,965,464
3,527,812
Total GAAP Weighted-Average Common Units Outstanding -
Diluted
556,419,591
585,699,899
586,763,053
592,920,795
596,666,194
538,669,070
590,546,640
Adjustments:
Weighted-Average Blackstone Holdings Partnership Units
581,202,276
557,463,170
555,224,714
551,916,623
549,773,866
590,446,577
553,579,525
Weighted-Average Economic Net Income Adjusted Units
1,137,621,867
1,143,163,069
1,141,987,767
1,144,837,418
1,146,440,060
1,129,115,647
1,144,126,165
Economic Net Income Adjusted Units, End of Period
1,143,019,281
1,143,893,134
1,142,576,555
1,145,675,305
1,150,867,868
1,143,019,281
1,150,867,868
Total Common Units Outstanding
(a)
568,600,922
573,275,746
576,466,264
584,860,157
588,165,949
568,600,922
588,165,949
Adjustments:
Blackstone Holdings Partnership Units
553,614,040
554,603,708
550,902,208
550,274,903
547,021,277
553,614,040
547,021,277
Distributable Earnings Units Outstanding
(b)
1,122,214,962
1,127,879,454
1,127,368,472
1,135,135,060
1,135,187,226
1,122,214,962
1,135,187,226

Blackstone
33
Definitions and Distribution Policy
Blackstone
discloses
the
following
financial
measures
that
are
calculated
and
presented
on
the
basis
of
methodologies
other
than
in
accordance
with
generally
accepted accounting principles in the United States of America (“non-GAAP”) in this presentation:
•
Blackstone uses Economic Income, or “EI”, as a key measure of value creation, a benchmark of its performance and in making resource deployment and
compensation decisions across its five segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges
arise from Blackstone’s initial public offering (“IPO”) and long-term retention programs outside of annual deferred compensation and other corporate actions,
including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration
associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages.
•
Economic Net Income, or “ENI”, represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on Income
(Loss) Before Provision for Taxes.
•
Blackstone uses Fee Related Earnings, or “FRE”, as a key measure to highlight earnings from operations excluding:  (a) the income related to performance fees and
related carry plan costs, (b) income earned from Blackstone’s investments in the Blackstone Funds, and (c) realized and unrealized gains (losses) from other
investments except for such gains (losses) from Blackstone’s Treasury cash management strategies. Blackstone uses FRE as a measure to assess whether recurring
revenue from its businesses is sufficient to adequately cover all of its operating expenses and generate profits. FRE equals contractual fee revenues, investment
income from Blackstone’s Treasury cash management strategies and interest income, less (a) compensation expenses (which includes amortization of non-IPO and
non-acquisition-related equity-based awards, but excludes amortization of IPO and acquisition-related equity-based awards, carried interest and incentive fee
compensation), and (b) other operating expenses.
•
Distributable Earnings, or “DE”, which is derived from Blackstone’s segment reported results, is a supplemental measure to assess performance and amounts
available
for
distributions
to
Blackstone
unitholders,
including
Blackstone
personnel
and
others
who
are
limited
partners
of
the
Blackstone
Holdings
partnerships.
DE
is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a component of ENI, is the
sum across all segments of:  (a) Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c)
Other Revenue, (d) Realized Performance Fees, and
(e)
Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized Performance Fee Compensation, (c) Other
Operating
Expenses,
and
(d)
Taxes
and
Related
Payables
Including
the
Payable
Under
Tax
Receivable
Agreement.
DE
is
reconciled
to
Blackstone’s
Consolidated
Statement of Operations.
•
Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, as a measure of segment performance and an
indicator of its ability to cover recurring operating expenses. Adjusted EBITDA equals DE before segment interest expense, segment depreciation and amortization,
and the taxes and related payables including the Payable Under Tax Receivable Agreement.
•
Net Cash Available for Distribution to Common Unitholders is The
Blackstone Group L.P.’s share of Distributable Earnings, less realized investment gains and returns
of capital from investments and acquisitions, in excess of amounts determined by Blackstone’s general partner to be necessary or appropriate to provide for the
conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements,
or to provide for future cash requirements such as tax-related payments, clawback obligations and distributions to unitholders for any ensuing quarter.
Distribution Policy. Blackstone’s intention is to distribute to common unitholders each quarter substantially all of its Net Cash Available for Distribution to Common
Unitholders, subject to a minimum base quarterly distribution of
$0.12 per unit. In circumstances in which the Net Cash Available for Distribution to Common
Unitholders for a quarter falls short of the amount necessary to
support such per unit distribution, Blackstone intends to correspondingly reduce subsequent quarterly
distributions below the amounts supported by the Net Cash Available for Distribution to Common Unitholders by the amount of the shortfall, but not below $0.12 per
unit.
All
of
the
foregoing
is
subject
to
the
qualification
that
the
declaration
and
payment
of
any
distributions
are
at
the
sole
discretion
of
Blackstone’s
general
partner
and
may
change
at
any
time,
including,
without
limitation,
to
reduce
the
quarterly
distribution
payable
to
common
unitholders
to
less
than
$0.12
per
unit
or
even
to
eliminate such distributions entirely.

Blackstone
34
Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 which reflect
Blackstone’s current views with respect to, among other things,
Blackstone’s operations and financial performance. You can identify these forward-looking statements by the use of words such as
“outlook,”
“believes,”
“expects,”
“potential,”
“continues,”
“may,”
“will,”
“should,”
“seeks,”
“approximately,”
“predicts,”
“intends,”
“plans,”
“estimates,”
“anticipates”
or the negative version of these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual
outcomes or results to differ materially from those indicated in
these statements. Blackstone believes these factors include but
are
not limited to those described under the section entitled “Risk Factors”
in its Annual Report on Form 10-K for the fiscal year ended
December 31, 2012, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange
Commission, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings.
Blackstone undertakes no obligation to publicly update or review
any forward-looking statement, whether as a result of new
information, future developments or otherwise.
This presentation does not constitute an offer of any Blackstone
Fund.

Blackstone Group Inc Reports