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Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2023
Financial Data of Segments
The following tables present the financial data for Blackstone’s four segments as of March 31, 2023 and for the three months ended March 31, 2023 and 2022.
 
                                                                                                                              
    
March 31, 2023 and the Three Months Then Ended
    
Real
  
Private
  
Credit &
  
Hedge Fund
  
Total
    
Estate
  
Equity
  
Insurance
  
Solutions
  
Segments
Management and Advisory Fees, Net
                                         
Base Management Fees
   
  $
705,387
 
  
  $
451,610
 
  
  $
326,779
 
  
  $
135,771
 
  
  $
1,619,547
 
Transaction, Advisory and Other Fees, Net
   
 
20,561
 
  
 
14,784
 
  
 
8,451
 
  
 
1,914
 
  
 
45,710
 
Management Fee Offsets
   
 
(10,457
) 
  
 
(1,310
) 
  
 
(1,101
) 
  
 
(2
) 
  
 
(12,870
) 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Management and Advisory Fees, Net
   
 
715,491
 
  
 
465,084
 
  
 
334,129
 
  
 
137,683
 
  
 
1,652,387
 
Fee Related Performance Revenues
   
 
20,748
 
  
 
—
 
  
 
127,496
 
  
 
—
 
  
 
148,244
 
Fee Related Compensation
   
 
(137,610
) 
  
 
(161,626
) 
  
 
(163,999
) 
  
 
(45,736
) 
  
 
(508,971
) 
Other Operating Expenses
   
 
(74,181
) 
  
 
(76,763
) 
  
 
(74,238
) 
  
 
(26,466
) 
  
 
(251,648
) 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fee Related Earnings
   
 
524,448
 
  
 
226,695
 
  
 
223,388
 
  
 
65,481
 
  
 
1,040,012
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Realized Performance Revenues
   
 
11,096
 
  
 
499,322
 
  
 
125,181
 
  
 
5,927
 
  
 
641,526
 
Realized Performance Compensation
   
 
(3,165
) 
  
 
(232,934
) 
  
 
(56,772
) 
  
 
(3,153
) 
  
 
(296,024
) 
Realized Principal Investment Income
   
 
2,224
 
  
 
32,889
 
  
 
6,009
 
  
 
2,569
 
  
 
43,691
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Net Realizations
   
 
10,155
 
  
 
299,277
 
  
 
74,418
 
  
 
5,343
 
  
 
389,193
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Segment Distributable Earnings
   
  $
534,603
 
  
  $
525,972
 
  
  $
297,806
 
  
  $
70,824
 
  
  $
1,429,205
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Segment Assets
   
  $
13,328,803
 
  
  $
13,414,726
 
  
  $
6,811,414
 
  
  $
2,615,977
 
  
  $
36,170,920
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
                                                                                                                              
    
Three Months Ended March 31, 2022
    
Real
  
Private
  
Credit &
  
Hedge Fund
  
Total
    
Estate
  
Equity
  
Insurance
  
Solutions
  
Segments
Management and Advisory Fees, Net
                                         
Base Management Fees
   
  $
580,186
 
  
  $
421,472
 
  
  $
292,445
 
  
  $
145,046
 
  
  $
1,439,149
 
Transaction, Advisory and Other Fees, Net
   
 
40,485
 
  
 
12,658
 
  
 
9,397
 
  
 
1,469
 
  
 
64,009
 
Management Fee Offsets
   
 
(960
) 
  
 
(27,142
) 
  
 
(1,619
) 
  
 
(69
) 
  
 
(29,790
) 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Management and Advisory Fees, Net
   
 
619,711
 
  
 
406,988
 
  
 
300,223
 
  
 
146,446
 
  
 
1,473,368
 
Fee Related Performance Revenues
   
 
491,517
 
  
 
(648
) 
  
 
67,196
 
  
 
—
 
  
 
558,065
 
Fee Related Compensation
   
 
(344,842
) 
  
 
(151,050
) 
  
 
(127,344
) 
  
 
(47,235
) 
  
 
(670,471
) 
Other Operating Expenses
   
 
(66,003
) 
  
 
(67,744
) 
  
 
(57,167
) 
  
 
(23,184
) 
  
 
(214,098
) 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fee Related Earnings
   
 
700,383
 
  
 
187,546
 
  
 
182,908
 
  
 
76,027
 
  
 
1,146,864
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Realized Performance Revenues
   
 
802,916
 
  
 
450,238
 
  
 
30,743
 
  
 
28,913
 
  
 
1,312,810
 
Realized Performance Compensation
   
 
(290,031
) 
  
 
(206,703
) 
  
 
(13,386
) 
  
 
(9,000
) 
  
 
(519,120
) 
Realized Principal Investment Income
   
 
53,975
 
  
 
65,438
 
  
 
22,781
 
  
 
14,901
 
  
 
157,095
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Net Realizations
   
 
566,860
 
  
 
308,973
 
  
 
40,138
 
  
 
34,814
 
  
 
950,785
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Segment Distributable Earnings
   
  $
1,267,243
 
  
  $
496,519
 
  
  $
223,046
 
  
  $
110,841
 
  
  $
2,097,649
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes
The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the three months ended March 31, 2023 and 2022 along with Total Assets as of March 31, 2023:
 
                                                               
    
Three Months Ended
    
March 31,
    
2023
  
2022
Revenues
                 
Total GAAP Revenues
   
  $
1,381,845
 
  
  $
5,126,280
 
Less: Unrealized Performance Revenues (a)
   
 
759,316
 
  
 
(1,293,050
) 
Less: Unrealized Principal Investment (Income) Loss (b)
   
 
479,120
 
  
 
(26,758
) 
Less: Interest and Dividend Revenue (c)
   
 
(95,101
) 
  
 
(54,485
) 
Less: Other Revenue (d)
   
 
14,180
 
  
 
(72,819
) 
Impact of Consolidation (e)
   
 
(58,987
) 
  
 
(177,596
) 
Transaction-Related Charges (g)
   
 
4,788
 
  
 
(1,213
) 
Intersegment Eliminations
   
 
687
 
  
 
979
 
    
 
 
 
  
 
 
 
Total Segment Revenue (h)
   
  $
2,485,848
 
  
  $
3,501,338
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
Expenses
  
 
Total GAAP Expenses
   
  $
1,189,345
 
  
  $
2,197,022
 
Less: Unrealized Performance Allocations Compensation (i)
   
 
313,249
 
  
 
(472,284
) 
Less: Equity-Based Compensation (j)
   
 
(268,134
) 
  
 
(201,545
) 
Less: Interest Expense (k)
   
 
(104,209
) 
  
 
(66,602
) 
Impact of Consolidation (e)
   
 
(56,674
) 
  
 
(7,806
) 
Amortization of Intangibles (f)
   
 
(11,341
) 
  
 
(17,044
) 
Transaction-Related Charges (g)
   
 
(3,833
) 
  
 
(26,546
) 
Administrative Fee Adjustment (l)
   
 
(2,447
) 
  
 
(2,485
) 
Intersegment Eliminations
   
 
687
 
  
 
979
 
    
 
 
 
  
 
 
 
Total Segment Expenses (m)
   
  $
1,056,643
 
  
  $
1,403,689
 
    
 
 
 
  
 
 
 
                        
                        
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
        2023        
 
2022
Other Income
  
 
Total GAAP Other Income
   
  $
65,856
 
  
  $
51,637
 
Impact of Consolidation (e)
   
 
(65,856
) 
  
 
(51,637
) 
    
 
 
 
  
 
 
 
Total Segment Other Income
   
  $
—
 
  
  $
—
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
Income Before Provision for Taxes
  
 
Total GAAP Income Before Provision for Taxes
   
  $
258,356
 
  
  $
2,980,895
 
Less: Unrealized Performance Revenues (a)
   
 
759,316
 
  
 
(1,293,050
) 
Less: Unrealized Principal Investment (Income) Loss (b)
   
 
479,120
 
  
 
(26,758
) 
Less: Interest and Dividend Revenue (c)
   
 
(95,101
) 
  
 
(54,485
) 
Less: Other Revenue (d)
   
 
14,180
 
  
 
(72,819
) 
Plus: Unrealized Performance Allocations Compensation (i)
   
 
(313,249
) 
  
 
472,284
 
Plus: Equity-Based Compensation (j)
   
 
268,134
 
  
 
201,545
 
Plus: Interest Expense (k)
   
 
104,209
 
  
 
66,602
 
Impact of Consolidation (e)
   
 
(68,169
) 
  
 
(221,427
) 
Amortization of Intangibles (f)
   
 
11,341
 
  
 
17,044
 
Transaction-Related Charges (g)
   
 
8,621
 
  
 
25,333
 
Administrative Fee Adjustment (l)
   
 
2,447
 
  
 
2,485
 
    
 
 
 
  
 
 
 
Total Segment Distributable Earnings
   
  $
1,429,205
 
  
  $
2,097,649
 
    
 
 
 
  
 
 
 
 
                        
 
  
As of
 
  
  March 31,  
 
  
2023
Total Assets
         
Total GAAP Assets
   
  $
41,086,439
 
Impact of Consolidation (e)
   
 
(4,915,519
) 
    
 
 
 
Total Segment Assets
   
  $
36,170,920
 
    
 
 
 
 
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges.
(a)
This adjustment removes Unrealized Performance Revenues on a segment basis.
(b)
This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis.
(c)
This adjustment removes Interest and Dividend Revenue on a segment basis.
(d)
This adjustment removes Other Revenue on a segment basis. For the three months ended March 31, 2023 and 2022, Other Revenue on a GAAP basis was $(14.2) million and $72.9 million, and included $(14.7) million and $72.8 million of foreign exchange gains (losses), respectively.
(e)
This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by
non-controlling
interests.
(f)
This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation.
(g)
This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment presentation. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.
(h)
Total Segment Revenues is comprised of the following:
 
                     
                     
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
Total Segment Management and Advisory Fees, Net
   
 $
1,652,387
 
   
 $
1,473,368
 
Total Segment Fee Related Performance Revenues
   
 
148,244
 
   
 
558,065
 
Total Segment Realized Performance Revenues
   
 
641,526
 
   
 
1,312,810
 
Total Segment Realized Principal Investment Income
   
 
43,691
 
   
 
157,095
 
    
 
 
 
   
 
 
 
Total Segment Revenues
   
 $
  2,485,848
 
   
 $
  3,501,338
 
    
 
 
 
   
 
 
 

(i)
This adjustment removes Unrealized Performance Allocations Compensation.
(j)
This adjustment removes Equity-Based Compensation on a segment basis.
(k)
This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement.
(l)
This adjustment adds an amount equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.
Reconciliation of Total Segments to Reported on the Consolidated Statements of Operations
The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Condensed Consolidated Statement of Operations for the three months ended March 31, 2023 and 2022:
 
                        
                        
 
  
Three Months Ended

March 31,
 
  
2023
 
2022
Management and Advisory Fees, Net
                 
GAAP
   
 $
1,658,315
 
  
 $
1,475,936
 
Segment Adjustment (a)
   
 
(5,928
) 
  
 
(2,568
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
  1,652,387
 
  
 $
  1,473,368
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues
  
 
GAAP
  
 
Incentive Fees
   
 $
142,876
 
  
 $
104,489
 
Investment Income - Realized Performance Allocations
   
 
646,894
 
  
 
  1,766,386
 
    
 
 
 
  
 
 
 
GAAP
   
 
789,770
 
  
 
1,870,875
 
Total Segment
                 
Less: Realized Performance Revenues
   
 
(641,526
) 
  
 
(1,312,810
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
  148,244
 
  
 $
558,065
 
    
 
 
 
  
 
 
 
 
                        
                        
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
GAAP Compensation to Total Segment Fee Related Compensation
                 
GAAP
                 
Compensation
   
 $
716,285
 
  
 $
656,505
 
Incentive Fee Compensation
   
 
63,281
 
  
 
41,019
 
Realized Performance Allocations Compensation
   
 
296,794
 
  
 
717,601
 
    
 
 
 
  
 
 
 
GAAP
   
 
1,076,360
 
  
 
1,415,125
 
Total Segment
                 
Less: Realized Performance Compensation
   
 
(296,024
) 
  
 
(519,120
) 
Less: Equity-Based Compensation - Fee Related Compensation
   
 
(265,154
) 
  
 
(200,387
) 
Less: Equity-Based Compensation - Performance Compensation
   
 
(2,980
) 
  
 
(1,158
) 
Segment Adjustment (b)
   
 
(3,231
) 
  
 
(23,989
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
508,971
 
  
 $
670,471
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
GAAP General, Administrative and Other to Total Segment Other Operating Expenses
                 
GAAP
   
 $
273,394
 
  
 $
240,674
 
Segment Adjustment (c)
   
 
(21,746
) 
  
 
(26,576
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
251,648
 
  
 $
214,098
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
Realized Performance Revenues
                 
GAAP
                 
Incentive Fees
   
 $
142,876
 
  
 $
104,489
 
Investment Income - Realized Performance Allocations
   
 
646,894
 
  
 
1,766,386
 
    
 
 
 
  
 
 
 
GAAP
   
 
789,770
 
  
 
1,870,875
 
Total Segment
                 
Less: Fee Related Performance Revenues
   
 
(148,244
) 
  
 
(558,065
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
641,526
 
  
 $
1,312,810
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
Realized Performance Compensation
                 
GAAP
                 
Incentive Fee Compensation
   
 $
63,281
 
  
 $
41,019
 
Realized Performance Allocation Compensation
   
 
296,794
 
  
 
717,601
 
    
 
 
 
  
 
 
 
GAAP
   
 
360,075
 
  
 
758,620
 
Total Segment
                 
Less: Fee Related Performance Compensation (d)
   
 
(61,071
) 
  
 
(238,342
) 
Less: Equity-Based Compensation - Performance Compensation
   
 
(2,980
) 
  
 
(1,158
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
296,024
 
  
 $
519,120
 
    
 
 
 
  
 
 
 
 
                        
                        
 
  
Three Months Ended
 
  
March 31,
 
  
2023
 
2022
Realized Principal Investment Income
                 
GAAP
   
 $
108,058
 
  
 $
285,104
 
Segment Adjustment (e)
   
 
(64,367
) 
  
 
(128,009
) 
    
 
 
 
  
 
 
 
Total Segment
   
 $
43,691
 
  
 $
157,095
 
    
 
 
 
  
 
 
 
 
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges.
(a)
Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures.
(b)
Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures.
(c)
Represents the (1) removal of amortization of transaction-related intangibles, (2) removal of certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures, and (3) a reduction equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units which is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.
(d)
Fee related performance compensation may include equity-based compensation based on fee related performance revenues
(e)
Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by
non-controlling
interests.