Blackstone Inc. (BX)

Business

From the FY2025 10-K, accession 0001193125-26-082531.

Blackstone is the world's largest alternative asset manager. It raises capital from institutional investors, pension funds, insurance companies, sovereign wealth funds, and, increasingly, from individual investors, and deploys it through investment funds and separately managed accounts across real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Total Assets Under Management were $1,274.9 billion at December 31, 2025. The firm makes money in three ways: management and advisory fees earned under contract with funds, fund investors and fund portfolio companies (including transaction and monitoring fees) plus capital markets services; performance revenues, consisting of carried interest ("Performance Allocations") on realized fund gains and contractual Incentive Fees; and returns on the firm's own capital invested alongside its funds. Blackstone employed approximately 5,285 people at December 31, 2025, including 268 senior managing directors, headquartered at 345 Park Avenue in New York.

The business is organized into four segments.

Real Estate, $319.3 billion of Total AUM at December 31, 2025, roughly 785 employees. It runs three distinct platforms: the opportunistic Blackstone Real Estate Partners ("BREP") funds, which are geographically diversified across the Americas, Europe and Asia and are concentrated in logistics, data centers, rental housing, hospitality, office and retail; a Core+ strategy investing in substantially stabilized assets through perpetual capital vehicles, including the Blackstone Property Partners ("BPP") funds, the non-listed REIT Blackstone Real Estate Income Trust ("BREIT") and the Blackstone European Property Income Fund ("BEPIF"); and Blackstone Real Estate Debt Strategies ("BREDS"), which targets commercial real estate mortgage loans and liquid real estate debt and includes the NYSE-listed mortgage REIT Blackstone Mortgage Trust ("BXMT").

Private Equity, $416.4 billion of Total AUM, roughly 720 employees. It contains Corporate Private Equity (the global Blackstone Capital Partners "BCP" funds, BCP Asia, the energy-transition BETP funds and the longer-hold core Blackstone Core Equity Partners "BCEP"), the hybrid-capital Tactical Opportunities platform, Blackstone Life Sciences, Blackstone Growth, and the individual-investor vehicle BXPE. It also houses Infrastructure (institutional BIP and private-wealth BXINFRA), Secondaries (Strategic Partners plus the GP Stakes business BXGP), the capital markets business BXCM, and BTAS, which gives individuals a single-commitment route into several illiquid strategies.

Credit & Insurance ("BXCI"), $443.0 billion of Total AUM, roughly 815 employees, and one of the largest credit and CLO managers in the world. It is organized around three strategies: private corporate credit (mezzanine and direct lending, including the BDCs Blackstone Private Credit Fund "BCRED" and Blackstone Secured Lending Fund "BXSL", plus the European ECRED, and stressed/distressed strategies); liquid corporate credit (CLOs, open- and closed-ended funds, systematic strategies and SMAs); and infrastructure and asset based credit (private placements, energy and sustainable resources, and asset based finance secured by physical, financial or residential real estate collateral). The insurance platform manages or sub-manages general account and reinsurance assets for insurance clients, mostly through separately managed accounts weighted toward investment grade credit.

Multi-Asset Investing ("BXMA"), $96.2 billion of Total AUM, roughly 240 employees, and the world's largest discretionary allocator to hedge funds. It runs four platforms: Absolute Return, Multi-Strategy, Total Portfolio Management and Public Real Assets (managed by Harvest Fund Advisors, investing in listed energy infrastructure, renewables and midstream MLPs).

Two structural themes cut across all four segments. Perpetual Capital, assets under management with an indefinite term, not in liquidation, with no ordinary-course obligation to return capital, has grown substantially and now supplies a large and rising share of both management fees and performance revenues. It includes BREIT, BEPIF and BXMT in Real Estate; BIP, BXPE, BXINFRA and GP Stakes vehicles in Private Equity; BXSL and BCRED in Credit & Insurance; and assets managed for certain insurance clients. The Private Wealth channel, historically secondary to institutional fundraising, is now a substantial and growing source of capital, distributed through brokerage firms, private banks, independent advisors and feeder structures, with a stated ambition to extend into the defined contribution retirement channel.

Fee mechanics. In carry funds, management fees are charged on capital commitments, invested capital and/or undeployed capital during the investment period and on invested capital, fair value or commitments thereafter; negative fund performance can reduce the fee paid but not the rate. Other fund structures generally charge on net asset value. CLOs pay a base plus subordinated fee on assets, declining as the vehicle deleverages over a typical eight- to eleven-year life. SMA and BDC mandates are generally terminable on as little as 30 days' notice. Carried interest is typically a net profits interest entitling the general partner to up to 20% of net realized income and gains, usually on a realized-gain basis and generally subject to a preferred return of 5% to 8% with a catch-up, and subject to clawback if later losses mean the general partner was over-distributed. In perpetual vehicles the economics differ: BREIT, BEPIF, BXPE and BXINFRA pay a performance participation allocation of 12.5% of total return over a 5% hurdle, measured annually and payable quarterly; certain open-ended BPP and BIP funds pay 7% to 12.5% of net profit over a hurdle of roughly 5.5% to 7%, generally crystallizing every three years; BDCs pay income and capital gains incentive fees of 12.5% or 17.5%; and BXMT's manager earns 20% of distributable earnings above a 7% return on equity.

Blackstone Inc. is a Delaware corporation and a holding company whose only material assets are partnership units in the Blackstone Holdings Partnerships held through wholly owned subsidiaries. Blackstone Securities Partners L.P. is the registered broker-dealer through which the capital markets business and much of the fund marketing runs; the fund advisers are registered under the Investment Advisers Act, with additional entities regulated by the FCA in the U.K. (Blackstone Europe LLP), the Central Bank of Ireland (Blackstone Ireland Limited, Blackstone Ireland Fund Management), the CSSF in Luxembourg (Blackstone Europe Fund Management), and regulators in Japan, Hong Kong, Australia and Singapore.

Risk factors

From the FY2025 10-K, accession 0001193125-26-082531.

Market and rate conditions drive everything. Blackstone's revenue depends on its funds' ability to raise capital, deploy it, and exit investments, all three are sensitive to conditions outside the firm's control. Turmoil in global markets moves mark-to-market valuations rapidly, and because public equity holdings have at times been concentrated in a few large positions, unrealized marks are particularly sensitive to individual price moves. The firm flags that inflation has remained above the Federal Reserve's target and rates remain elevated; a slower-than-expected decline in rates would continue to pressure real estate valuations and fundraising in strategies aimed at high-net-worth investors. Life science office, traditional office and other long-lease properties without short-term rent escalation are named as the most challenged. Conversely, the firm notes that its credit funds have benefited from elevated rates because a substantial majority of the portfolio is floating rate, so falling rates or tighter credit spreads would make that performance hard to repeat.

Concentration in themes that have worked. The 10-K explicitly warns that real estate and infrastructure funds have substantially increased exposure to digital infrastructure, which has supported strong performance, and that such performance would be difficult to replicate if demand for digital infrastructure were substantially reduced, whether by economic slowdown or regulatory impediment.

Deployment pace. Revenue depends on the pace and size of investments. The expansion of perpetual capital vehicles has created a large pool of capital that must find attractive deployment; if it cannot, revenues suffer. The filing also cites specific policy constraints: state-level scrutiny of private equity investment in patient-facing healthcare, a January 2026 U.S. executive order seeking to restrict institutional investor ownership of single-family homes, and U.S. policy limits on deploying capital in China.

Earnings volatility from performance revenues. Carry funds pay only on realization and only after limited partners recover fees, expenses and a preferred return, so a single realization can dominate a quarter and not recur. Perpetual vehicles pay incentive income at frequencies ranging from quarterly to every five years, only if NAV has risen (or risen past a threshold), and several carry high water marks that suppress incentive income after a loss period until the prior peak is recovered.

Fundraising and redemption risk. Capital raising depends on investor allocation policies; the filing notes state-level proposals to increase reporting burdens on public pension investment in alternatives, which could discourage an investor base that has historically been a significant source of capital. On the other side, many vehicles allow redemption or repurchase. Blackstone cites its own precedent directly: market volatility drove a material increase in BREIT repurchase requests beginning in late 2022, BREIT began prorating requests in November 2022, and inflows materially declined thereafter, producing net outflows. Separately managed accounts and registered fund mandates can be terminated on as little as 30 days' notice, and fund LPs can in many cases remove the general partner or terminate the investment period by majority or supermajority vote, in some funds for any reason on a 75% vote.

Clawback. If a carry fund's later losses leave the general partner over-distributed, Blackstone must repay carried interest on an after-tax basis, and may not have cash available when the obligation triggers. Clawback is several, not joint, but if another recipient (such as a former employee) fails to fund their share, Blackstone and its participating employees may have to fund an additional 50% to 70% beyond their pro-rata share.

Individual-investor expansion. Growing the number and type of products offered to high-net-worth and mass affluent investors, including outside the U.S. through distributor-sponsored feeders and nominee/omnibus structures, adds complexity, litigation and regulatory exposure. It may also complicate institutional fundraising, since institutions may have conflict-of-interest concerns or may condition commitments on limiting co-investment by retail-channel vehicles.

Regulation. The firm is subject to SEC, FINRA, FCA, CBI, CSSF and Asia-Pacific supervision. Named exposures include FSOC's authority to designate nonbank financial companies as systemically important, which the 10-K notes could apply to large asset managers and to nonbank lending activities, bringing bank-style capital, leverage, liquidity and resolution requirements; regulatory attention to "shadow banking"; Advisers Act pay-to-play rules, where a single disqualifying political contribution can bar compensated advisory services to a government plan for two years; Regulation Best Interest, which may discourage broker-dealers from recommending Blackstone products to retail customers; and SEC enforcement under the 2022 amended marketing rule.

Tax. The One Big Beautiful Bill Act, signed July 4, 2025, extends or reinstates much of the 2017 Tax Cuts and Jobs Act and curtails Inflation Reduction Act clean energy subsidies; implementation depends on future guidance and court rulings. Separately, the OECD's Pillar One and Pillar Two regime, including a 15% global minimum effective rate with top-up taxes, could raise effective rates and compliance cost, though the G7 announced a "side-by-side" understanding on June 28, 2025 under which U.S.-parented groups would be exempt from certain Pillar Two proposals, the details of which remain under discussion.

Trade policy. The 10-K discloses that in February 2026 the U.S. Supreme Court ruled that many recently imposed U.S. tariffs exceeded the government's authority, invalidating many but not all of them, after which the administration imposed a global tariff under a different law. The outlook for further trade actions is described as unclear, with tariffs capable of raising costs and compressing margins at portfolio companies that sell or source physical goods in the U.S.

Cybersecurity, data and AI. As an alternative manager holding sensitive information about investors, portfolio companies and prospective investments, Blackstone says it faces heightened attack risk, that attacks have in the past attempted unauthorized access, and that unauthorized individuals have in some past instances gained access to confidential data through third-party service providers. It notes AI is increasing the frequency and sophistication of attacks and enabling more credible impersonation of the firm and its employees, and separately that employee input of non-public or personally identifiable information into AI applications could expose that data to third parties.

Insurance platform dependence. The insurance business, a meaningful driver of AUM and perpetual capital growth, rests on several investment management agreements with a number of insurance company clients; failure to originate high-quality, capital-efficient assets that help those clients meet long-term policyholder obligations could cost the firm existing and prospective mandates.

Other named exposures include leverage at both the firm and portfolio-company level, illiquidity of fund assets, reliance on third-party service providers, prime brokers and custodians, underwriting risk in the capital markets business, investments in distressed companies (including potential ERISA "controlled group" pension liability), dependence on the co-founder and other key senior managing directors, and risks specific to power and energy, real estate and infrastructure (including digital infrastructure), life sciences and hedge fund investing.

Governance and structure. Blackstone Group Management L.L.C., owned by senior managing directors and controlled by Mr. Schwarzman, holds the sole share of Series II preferred stock and more than 50% of the voting power for the election of directors. Blackstone is therefore a "controlled company" under NYSE rules; while it currently has a majority-independent board, it has elected to take the other available exceptions, including on committee composition. Common stockholders cannot remove directors with or without cause, and the certificate of incorporation states the Series II Preferred Stockholder need not consider other stockholders' separate interests and is not liable to them absent a final judgment of bad faith, fraud or willful misconduct. The Series II share may be transferred to a third party with board approval, and the holder's own members may sell their interests without Blackstone's approval, either of which could change the board's composition and philosophy. Separately, tax receivable agreements with senior managing directors and other pre-IPO owners require Blackstone to pay 85% of the cash tax savings it actually realizes from IPO-related and exchange-related basis step-ups; the filing expects those payments to be substantial, notes they are not conditioned on continued ownership, and warns the firm may need to incur debt to fund them.

Management's discussion, fiscal year 2025

From the FY2025 10-K, accession 0001193125-26-082531.

Backdrop. Most major equity markets appreciated in the fourth quarter of 2025; the S&P 500 returned 2.7% for the quarter, led by healthcare (+11.7%) and telecommunications (+7.3%), with real estate (-2.9%) and utilities (-1.4%) lagging. U.S. capital markets activity expanded considerably over the year, IPO volumes up roughly 73% and announced M&A volumes up roughly 60% versus 2024, and high-yield spreads tightened 21 basis points while issuance rose 16.8%. Real GDP growth was 1.4% annualized in the fourth quarter on the BEA advance estimate, well below expectations, with the government shutdown estimated to have subtracted about 1.0%. Unemployment ended the year at 4.4% against 4.1% a year earlier, and headline CPI was 2.7% in December 2025 versus 3.0% in January 2025. The Federal Reserve cut three times during 2025 and held in January 2026. Management noted that by mid-February 2026 concerns about artificial-intelligence-driven disruption had begun to weigh on equity capital markets.

Consolidated results. Revenues were $14.5 billion for 2025, up $1.2 billion from $13.2 billion in 2024, driven by an $886.7 million increase in Management and Advisory Fees, Net and a $709.2 million increase in Investment Income. Management and Advisory Fees, Net reached $8.1 billion, with the increase concentrated in Private Equity (+$573.3 million, on higher base management fees from growing fee-earning AUM in BXPE and BIP and greater deal activity in BXCM) and Credit & Insurance (+$347.8 million, on higher fee-earning AUM in private credit strategies). Investment Income was $5.3 billion, up $709.2 million, primarily from a $569.9 million increase in realized investment income. Expenses were $7.7 billion, up $883.3 million, with $626.5 million of that in total compensation and benefits, chiefly compensation, which tracks management and advisory fees. Other Income was $424.0 million against $48.8 million in 2024, mostly a $327.3 million increase in net gains from fund investment activities. Income Before Provision for Taxes was $7.2 billion versus $6.5 billion, and the provision for taxes was $1.1 billion, an effective rate of 15.7% against 15.8% in 2024.

Assets under management. Total AUM rose $147.8 billion to $1,274.9 billion at December 31, 2025 from $1,127.2 billion a year earlier. Fee-Earning AUM rose $91.0 billion to $921.7 billion from $830.7 billion.

• Credit & Insurance added the most: up $67.4 billion to $443.0 billion, on inflows of $132.1 billion (private corporate credit $62.1 billion, infrastructure and asset based credit $36.0 billion, liquid corporate credit $22.4 billion) and $18.1 billion of market appreciation, against $62.4 billion of realizations and $20.4 billion of outflows.
• Private Equity rose $64.3 billion to $416.4 billion, on $68.1 billion of inflows (Secondaries $19.6 billion, Corporate Private Equity $18.6 billion, Infrastructure $13.3 billion, BXPE $8.2 billion) and $40.9 billion of market appreciation, against $33.9 billion of realizations and $10.9 billion of outflows.
• Multi-Asset Investing rose $12.1 billion to $96.2 billion, on $13.6 billion of inflows and $9.5 billion of appreciation against $7.3 billion of outflows and $3.7 billion of realizations.
• Real Estate was nearly flat, up $4.0 billion to $319.3 billion: $25.5 billion of inflows and $12.6 billion of appreciation were almost entirely offset by $25.6 billion of realizations and $8.5 billion of outflows, the latter driven by $6.2 billion from BREIT.

Segment earnings and management's read.

• Real Estate Segment Distributable Earnings were $2.4 billion, up $222.5 million, split between $187.9 million more Fee Related Earnings ($2.2 billion) and $34.6 million more Net Realizations. Fee Related Performance Revenues more than doubled, rising $286.2 million to $489.6 million from $203.4 million on stronger BREIT results, while Management Fees, Net slipped $93.4 million to $2.8 billion. Management characterized the real estate recovery as gradual, with limited aggregate appreciation notwithstanding strong BREIT performance; continued strength in digital infrastructure was partially offset by weaker fundamentals in life science office, student housing and select logistics holdings.
• Private Equity Segment Distributable Earnings were $2.9 billion, up $268.0 million, from $47.7 million more Fee Related Earnings ($1.9 billion) and $220.4 million more Net Realizations ($1.0 billion). Management and Advisory Fees, Net rose $573.3 million to $2.8 billion, but Fee Related Performance Revenues fell $637.4 million to $548.0 million because prior-year BIP performance revenues had crystallized. Management described strong performance across all strategies with particular strength in Infrastructure, solid revenue growth and resilient margins at Corporate Private Equity operating companies, and an acceleration in transaction activity, especially IPOs, in the second half of 2025.
• Credit & Insurance Segment Distributable Earnings were $2.0 billion, up $533.4 million, on $195.4 million more Fee Related Earnings ($1.4 billion) and $338.0 million more Net Realizations. Management Fees, Net rose $347.8 million to $1.9 billion on higher fee-earning AUM in private credit, and Fee Related Performance Revenues rose $40.7 million to $787.8 million on higher net investment income and fee-earning AUM at BCRED. BCRED raised over $14 billion during 2025. Management expects lower rates to reduce returns in floating-rate strategies but sees continuing structural shift toward private credit, while acknowledging that heightened market attention around private credit has affected net flows and that defaults should rise from historically low levels as the credit cycle progresses.
• Multi-Asset Investing Segment Distributable Earnings were $655.9 million, up $147.9 million, with Fee Related Earnings of $253.1 million (+$24.5 million) and higher Net Realizations. All strategies were positive; the Absolute Return Composite recorded its twenty-third consecutive quarter of positive performance, and the segment took in net inflows of over $6 billion for the year.

Net accrued performance revenues. For 2025, net accrued performance revenues receivable increased on net performance revenues of $3.6 billion, partially offset by net realized distributions of $3.1 billion.

Capital structure and returns to shareholders. On October 16, 2025 Blackstone entered an amended and restated $4.325 billion revolving credit facility, extending maturity from December 15, 2028 to October 16, 2030 and increasing the required minimum amount of fee-generating AUM. On November 3, 2025, through Blackstone Reg Finance Co. L.L.C., it issued $600 million of 4.300% senior notes due November 3, 2030 and $600 million of 4.950% senior notes due February 15, 2036, for general corporate purposes. Long-term debt from prior bond issuances totaled $12.4 billion. At December 31, 2025 there were no borrowings outstanding under the revolving credit facility; in February 2026 the firm drew $900.0 million under it. The firm held $2.6 billion in cash and cash equivalents, $359.7 million in corporate treasury investments and $7.1 billion in other investments at year end. Under the $2.0 billion repurchase authorization approved July 16, 2024, Blackstone repurchased 0.8 million shares during 2025 at a total cost of $122.6 million, leaving $1.7 billion available. Dividends of $0.93, $1.03, $1.29 and $1.49 per share were paid in respect of the four quarters of 2025, aggregating $4.74 per share, against $3.95 in 2024 and $3.35 in 2023. Stated policy is a quarterly dividend of approximately 85% of Blackstone Inc.'s share of Distributable Earnings, at the board's discretion.

Current quarter, three and six months ended June 30, 2026

From the Q2 2026 10-Q, accession 0001193125-26-340208, and the second quarter 2026 results furnished on Form 8-K, accession 0001193125-26-313250.

Backdrop. Equity markets appreciated sharply in the second quarter of 2026, with the S&P 500 returning 15.2%, led by information technology (+31.8%) and industrials (+14.9%); energy was the outlier at -13.4% as West Texas Intermediate fell 31.4% to $69.50 per barrel. U.S. IPO volumes rose 628% year over year, buoyed by the $75 billion IPO of SpaceX, the largest in history, and announced M&A volumes rose 99%. CPI rose 3.5% year over year in June against 3.3% in March; the Federal Reserve has held its target range steady since December 2025. The ten-year Treasury yield rose 15 basis points in the quarter to 4.47%, and three-month SOFR was unchanged at 3.68%. Real GDP grew 1.5% annualized versus 2.1% in the first quarter, with unemployment at 4.2%. Management attributed much of the economy's strength to artificial-intelligence-related spending and said a durable resolution to the conflict in the Middle East should support further improvement in transaction activity.

Results. Total Revenues were $5.0 billion for the quarter, up $1.3 billion from $3.7 billion a year earlier, driven by an $867.1 million increase in Investment Income, $237.0 million in Other Revenue and $230.5 million in Management and Advisory Fees, Net. Within investment income, realized income rose $543.8 million, principally $324.7 million from Real Estate on higher realized gains in BREP and Core+ funds, and unrealized income rose $323.3 million, principally $450.4 million from Real Estate on appreciation in certain BREP and Core+ funds. Other Revenue swung to $11.9 million from $(225.1) million on foreign exchange gains. Management and Advisory Fees, Net were $2.3 billion, with the increase led by Credit & Insurance (+$102.1 million) and Private Equity (+$88.3 million). Expenses were $2.4 billion, up $443.0 million, of which $392.6 million was compensation and benefits and $317.6 million of that was performance allocations compensation. Income Before Provision for Taxes was $2.8 billion against $1.9 billion, with a tax provision of $452.4 million and an effective rate of 16.1% versus 15.1%.

For the six months, Total Revenues were $8.7 billion versus $7.0 billion, on an $842.2 million increase in Investment Income and a $474.8 million increase in Management and Advisory Fees, Net (Private Equity alone +$268.4 million). Within the six-month unrealized line, a $507.8 million decline in Credit & Insurance, lower unrealized appreciation of Corebridge common stock, and a $206.2 million decline in Private Equity were partly offset by a $529.1 million increase in Real Estate. Six-month expenses were $4.6 billion versus $3.8 billion, Income Before Provision for Taxes was $4.3 billion versus $3.4 billion, and the effective tax rate was 15.2% against 15.8%. Net income before taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 37.1% for the quarter and 37.2% for the six months.

As furnished with the second quarter results: GAAP Net Income was $2.4 billion for the quarter and $3.6 billion year to date, of which $1.2 billion and $1.9 billion respectively were attributable to Blackstone Inc.; Fee Related Earnings were $1.8 billion ($1.43 per share) in the quarter and $6.3 billion over the last twelve months; Distributable Earnings were $2.0 billion ($1.52 per share) in the quarter and $7.9 billion over the last twelve months; and Net Accrued Performance Revenues stood at $7.5 billion ($6.00 per share). Chairman and CEO Stephen A. Schwarzman described the quarter as "outstanding," citing nearly $70 billion of inflows and saying the firm's "decision to lean into the artificial intelligence megatrend is leading to standout investment performance across numerous strategies."

Assets under management. Total AUM was $1,346.3 billion at June 30, 2026, up $42.2 billion from $1,304.0 billion at March 31, 2026 and up $71.3 billion from $1,274.9 billion at December 31, 2025. Fee-Earning AUM was $961.6 billion, up $24.0 billion in the quarter. Perpetual Capital AUM was $555.6 billion, up $15.9 billion in the quarter and $31.9 billion year to date, with the increases concentrated in Private Equity (+$21.0 billion year to date) and Credit & Insurance (+$9.4 billion). Inflows were $68.3 billion in the quarter and $262.5 billion over the last twelve months; deployment was $34.2 billion in the quarter; realizations were $31.8 billion; and total dry powder available for future investment was $228.1 billion.

By segment in the quarter:

• Private Equity rose $24.2 billion to $454.2 billion, on $24.5 billion of inflows (Corporate Private Equity $11.0 billion, Secondaries $5.7 billion, BXPE $4.0 billion, Infrastructure $2.8 billion) and $12.2 billion of market appreciation, against $11.0 billion of realizations and $1.5 billion of outflows.
• Credit & Insurance rose $11.9 billion to $469.3 billion, on $31.0 billion of inflows (private corporate credit $14.7 billion, infrastructure and asset based credit $9.9 billion, insurance platform $3.5 billion, liquid corporate credit $2.9 billion) and $2.0 billion of appreciation, against $13.5 billion of realizations and $7.6 billion of outflows.
• Multi-Asset Investing rose $7.3 billion to $108.6 billion, on $5.7 billion of appreciation and $4.6 billion of inflows against $2.3 billion of outflows and $710.0 million of realizations.
• Real Estate declined $1.1 billion to $314.1 billion, as $6.6 billion of realizations, $2.2 billion of outflows and $555.4 million of market depreciation outweighed $8.2 billion of inflows. Realizations were led by $2.7 billion from BREP, $1.9 billion from BREDS and $1.4 billion from BREIT; depreciation was driven by $2.3 billion from BPP and co-investment, partly offset by $1.7 billion of appreciation at BREIT. Year to date Real Estate AUM is down $5.2 billion from $319.3 billion at December 31, 2025.

Segment earnings.

• Real Estate Segment Distributable Earnings were $745.3 million for the quarter, up $179.4 million, with Fee Related Earnings of $613.0 million (+$69.4 million, on $153.1 million more Fee Related Performance Revenues less $92.0 million more Fee Related Compensation) and $110.0 million more Net Realizations. For the six months, Segment DE was $1.3 billion (+$241.4 million) and FRE $1.2 billion (+$131.7 million). Management said real estate values appreciated modestly in the quarter, led by digital infrastructure and partly offset by declines in life science office; elevated base rates and volatility from the Middle East conflict continued to weigh on transaction activity, though debt capital markets remained strong. It named three supportive factors, digital infrastructure fundamentals, a meaningful re-acceleration of U.S. leasing activity in the logistics portfolio, and declining new supply including in rental housing, noting these three sectors represent a substantial portion of the real estate equity portfolio.
• Private Equity Segment Distributable Earnings were $981.5 million for the quarter, up $230.1 million, with Fee Related Earnings of $716.9 million (+$197.5 million, on $199.1 million more Fee Related Performance Revenues and $88.3 million more Management and Advisory Fees, Net, partly offset by $70.6 million more Fee Related Compensation). For the six months, Segment DE was $2.0 billion (+$651.1 million) and FRE $1.3 billion (+$417.9 million). Management cited performance led by digital infrastructure and the energy portfolio, strong fundraising across drawdown and perpetual vehicles from both institutional and private wealth demand, and solid revenue growth with healthy margins at Corporate Private Equity operating companies, while noting the Middle East conflict has slowed near-term realization activity, offset in part by a considerably stronger IPO market.
• Credit & Insurance Segment Distributable Earnings were $373.2 million for the quarter, down $22.5 million, as a $59.6 million decline in Net Realizations outweighed a $37.0 million increase in Fee Related Earnings to $370.1 million. Management and Advisory Fees, Net rose $102.1 million, partly offset by a $30.8 million decline in Fee Related Performance Revenues and $17.3 million more Fee Related Compensation. For the six months, Segment DE was $746.3 million, down $152.8 million, on a $177.4 million decline in Net Realizations against a $24.5 million increase in FRE to $701.9 million. Management described stability and increasing diversification amid a volatile market, with higher financing and investment activity supporting transaction and advisory fees, and said non-investment grade private credit strategies generated modest returns, strong interest income and stable underlying credit across most holdings, offset by markdowns in select underperforming credits.
• Multi-Asset Investing Segment Distributable Earnings were $97.7 million for the quarter, up $25.3 million, with Fee Related Earnings of $83.4 million (+$20.0 million, mostly a $24.1 million increase in Management and Advisory Fees, Net). Six-month Net Realizations were $22.3 million against $8.2 million. All strategies were positive, driven by investments in the artificial intelligence sector, and the Absolute Return Composite recorded its twenty-fifth consecutive quarter of positive performance.

Balance sheet and liquidity. Total Assets were $49.9 billion at June 30, 2026, up $2.2 billion from December 31, 2025, mostly a $2.3 billion increase in Investments attributable to appreciation in Private Equity. Total Liabilities were $27.5 billion, up $1.6 billion, primarily a $752.1 million increase in Loans Payable, attributable to the revolving credit facility draw taken in the first quarter of 2026, and a $432.8 million increase in accrued compensation and benefits. Cash and cash equivalents were $2.5 billion. The $4.325 billion revolving credit facility with Citibank, N.A. as administrative agent matures October 16, 2030; $800.0 million was outstanding at June 30, 2026. Net Accrued Performance Revenues were $7,468 million at June 30, 2026 against $6,608 million a year earlier; over the twelve months ended June 30, 2026 the receivable increased on net performance revenues of $4.6 billion partly offset by net realized distributions of $3.8 billion.

Capital returned. Blackstone repurchased 0.2 million shares in the quarter and 0.4 million in the six months, at a total cost of $24.0 million and $48.4 million respectively, leaving $1.6 billion available under the program at June 30, 2026. Dividends totaled $2.45 per share in respect of the two fiscal quarters ended June 30, 2026, including $1.29 per share for the second quarter; dividends over the last twelve months were $5.23 per share, and $1.7 billion is to be distributed to shareholders in respect of the second quarter, $6.9 billion over the last twelve months through dividends and repurchases combined.

Legal proceedings. Blackstone states it is not currently subject to any pending legal, regulatory, administrative or arbitration proceedings that it expects to have a material impact on its condensed consolidated financial statements, while cautioning that an adverse outcome in certain matters could materially affect results in a particular period. It reported no material changes in market risk as of June 30, 2026 compared with December 31, 2025.

Kentucky settlement. Effective June 12, 2026 the Blackstone defendants in the long-running Kentucky litigation reached a new settlement agreement with the Kentucky Retirement System ("KRS") and the Commonwealth of Kentucky covering all outstanding claims in their respective lawsuits. The agreement obligates an $18 million payment to KRS, with a further $6 million to follow if the related Taylor claims are finally dismissed subject to certain conditions and limitations; both payments will be covered by Blackstone's insurance. The Taylor plaintiffs have filed various objections to the settlement, which are currently pending. Blackstone states that its financial results for the quarter ended June 30, 2026 "include an accrual for the estimated liability related to this matter."

Subsequent events

From the Q2 2026 10-Q, accession 0001193125-26-340208, and the second quarter 2026 results furnished on Form 8-K, accession 0001193125-26-313250.

Blackstone's subsequent events note states that there have been no events since June 30, 2026 that require recognition or disclosure in the condensed consolidated financial statements. No acquisitions, divestitures or financings were disclosed as post-period events.

Four post-period developments are disclosed elsewhere in the same filings:

• Dividend. On July 23, 2026 Blackstone declared a quarterly dividend of $1.29 per share of common stock, payable August 10, 2026 to holders of record at the close of business on August 3, 2026.
• Kentucky litigation. On August 4, 2026 the Franklin Circuit Court granted dismissal of the Commonwealth of Kentucky's claims against Blackstone in the action the Kentucky Attorney General brought in July 2020, under the settlement agreement described above. Separately, on July 20, 2026 KRS and the Commonwealth filed a motion for summary judgment in the related declaratory action they brought on June 18, 2026 seeking a declaration that they have the authority to settle and release the Taylor claims.
• Multi-Asset Investing fundraising. Subsequent to quarter end, the Multi-Asset Investing segment recorded its best single month of fundraising, with $4.8 billion of inflows.
• Rates. The ten-year U.S. Treasury yield, 4.47% at June 30, 2026, had risen to 4.72% as of July 31, 2026.

Earlier in the year, on June 23, 2026, Blackstone furnished an intra-quarter realization update (accession 0001193125-26-279498) preliminarily expecting total Realized Performance Revenues and total Realized Principal Investment Income in excess of $500 million for April 1 through June 23, 2026, almost entirely Realized Performance Revenues; a comparable update on March 24, 2026 (accession 0001193125-26-121857) put the figure in excess of $680 million for January 1 through March 24, 2026.

Filings that contain financial statements

• 8-K filed July 23, 2026 (accession 0001193125-26-313250): Exhibit 99.1 furnishes Blackstone's second-quarter 2026 results, including a full consolidated statement of operations (revenues, expenses, net income, EPS for the quarter, year-to-date, and trailing-twelve-months periods) and consolidated balance sheet highlights as of June 30, 2026, alongside segment-level income statements.
• 8-K filed April 23, 2026 (accession 0001193125-26-171788): Exhibit 99.1 furnishes first-quarter 2026 results with the equivalent consolidated income statement and balance sheet data as of March 31, 2026.
• 8-K filed January 29, 2026 (accession 0001193125-26-028145): Exhibit 99.1 furnishes fourth-quarter and full-year 2025 results, including full-year consolidated income statement and balance sheet data as of December 31, 2025.
• 8-K filed October 23, 2025 (accession 0001193125-25-247643), amended by 8-K/A filed October 23, 2025 (accession 0001193125-25-248907): Exhibit 99.1 furnishes third-quarter 2025 results with the same statement set as of September 30, 2025. The amendment corrects a single figure in the earnings presentation: Private Equity segment Net Realizations for the quarter ended September 30, 2025 is $380.1 million, not the $280.1 million that appeared on page 11 of the originally filed exhibit due to a financial-printer error. No other figures in the release were affected.
• 8-K filed July 24, 2025 (accession 0001193125-25-163805): Exhibit 99.1 furnishes second-quarter 2025 results with the equivalent statement set as of June 30, 2025.
• 8-K filed April 17, 2025 (accession 0001193125-25-083472): Exhibit 99.1 furnishes first-quarter 2025 results with the equivalent statement set as of March 31, 2025.

Second-quarter 2026 earnings (July 23, 2026)

Blackstone reported GAAP net income of $2.4 billion for the second quarter of 2026 ($3.6 billion year-to-date), with GAAP net income attributable to Blackstone Inc. of $1.2 billion for the quarter ($1.9 billion year-to-date). Total revenues were $5.0 billion for the quarter, up from $3.7 billion in the second quarter of 2025. Fee Related Earnings were $1.8 billion ($1.43/share) and Distributable Earnings were $2.0 billion ($1.52/share) for the quarter. Total assets under management reached $1,346.3 billion, up from $1,211.2 billion a year earlier, with $68.3 billion of inflows in the quarter. The board declared a quarterly dividend of $1.29 per share, payable August 10, 2026 to holders of record as of August 3, 2026. Blackstone also repurchased 0.2 million common shares during the quarter. (Accession 0001193125-26-313250)

Interim realization estimates (Regulation FD updates)

Blackstone periodically discloses preliminary, unaudited estimates of realization-related revenue ahead of full quarterly results:

• June 23, 2026: preliminary estimate of total Realized Performance Revenues and Realized Principal Investment Income for April 1–June 23, 2026 in excess of $500 million, almost entirely Realized Performance Revenues. (Accession 0001193125-26-279498)
• March 24, 2026: equivalent preliminary estimate for January 1–March 24, 2026. (Accession 0001193125-26-121857)
• September 24, 2025: equivalent preliminary estimate for July 1–September 24, 2025. (Accession 0001193125-25-215457)
• June 24, 2025: equivalent preliminary estimate for April 1–June 24, 2025. (Accession 0001193125-25-145785)

These are furnished, not filed, disclosures and are explicitly stated by the company not to predict full-quarter results.

Capital actions

• Senior notes offering (October–November 2025). On October 28, 2025, Blackstone Reg Finance Co. L.L.C., an indirect subsidiary of Blackstone, announced its intention to offer senior notes guaranteed by Blackstone and several Blackstone Holdings entities under an effective shelf registration statement (accession 0001193125-25-252448), then priced $600 million of 4.300% Senior Notes due 2030 and $600 million of 4.950% Senior Notes due 2036 (accession 0001193125-25-253885). The offering closed November 3, 2025 for a combined $1.2 billion aggregate principal amount; supplemental indentures were entered with The Bank of New York Mellon Trust Company, N.A. as trustee, and the notes are fully and unconditionally guaranteed by Blackstone Inc. and Blackstone Holdings I, AI, II, III and IV L.P. Proceeds are for general corporate purposes. (Accession 0001193125-25-262626)
• Revolving credit facility amended and restated (October 16, 2025). Blackstone Holdings Finance Co. L.L.C., an indirect subsidiary of Blackstone, entered into an amended and restated $4.325 billion unsecured revolving credit facility with Citibank, N.A. as administrative agent. The amendment extends the facility's maturity from December 15, 2028 to October 16, 2030 and raises the required minimum fee-generating assets under management covenant from $294.0 billion to $355.0 billion. (Accession 0001193125-25-242655)

What is not reflected in these filings

No merger, acquisition, divestiture, management or board change, restructuring, impairment, or legal/regulatory outcome disclosure appears in Blackstone's Form 8-K filings over this period. The filings reviewed consist of quarterly earnings releases, Regulation FD realization updates, and the two debt/credit-facility capital actions described above.

About this file

BX annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

BX quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

BX year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

BX trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Basis. Derived as the fiscal year ended December 31, 2025 (Form 10-K, accession 0001193125-26-082531) less the six months ended June 30, 2025 plus the six months ended June 30, 2026 (Form 10-Q, accession 0001193125-26-340208).

Adjustments

Source filings

Notes

• Blackstone is the world's largest alternative asset manager, organized into four segments: Real Estate, Private Equity, Credit & Insurance and Multi-Asset Investing. Its GAAP income statement consolidates certain funds it manages but does not own, so a large share of consolidated net income belongs to non-controlling interests. The line a common shareholder owns is Net Income Attributable to Blackstone Inc., and that is the figure the per-share amounts are calculated on.
• Periods covered. The FY2025 Form 10-K (accession 0001193125-26-082531) presents the statements of operations and cash flows for 2025, 2024 and 2023 and the statements of financial condition as of December 31, 2025 and 2024; FY2023 therefore carries an income statement and a cash flow statement but no balance sheet, because the 10-K does not print one for that date. The Q2 2026 Form 10-Q (accession 0001193125-26-340208) presents the three and six months ended June 30, 2026 and 2025, the balance sheet as of June 30, 2026 and December 31, 2025, and cash flows for the six-month periods only.
• Every figure in this record is stated in actual dollars. The 10-K and the 10-Q both print their statements in thousands of dollars, and each figure has been multiplied accordingly; share counts and per-share amounts are carried exactly as reported.
• Quarterly cash flow. The Q2 2026 10-Q's statements of cash flows are presented for the six months ended June 30, 2026 and 2025 only. No three-month cash flow column is published, so the Q2 2026 and Q2 2025 entries carry no cash flow block; the six-month figures appear under the year-to-date view instead.
• Non-GAAP measures. Fee Related Earnings, Total Segment Distributable Earnings, Distributable Earnings and Adjusted EBITDA are Blackstone's own measures, reconciled in both filings to Income Before Provision for Taxes. Distributable Earnings is Segment Distributable Earnings plus net interest and dividend income less taxes and related payables, and is the measure Blackstone uses to assess amounts available for dividends. They are taken from the reconciliation tables in the 10-K (accession 0001193125-26-082531) and the 10-Q (accession 0001193125-26-340208), not recomputed.
• Segment figures are presented on Blackstone's segment basis, which deconsolidates the funds it manages, removes intangible amortization and equity-based compensation, and excludes transaction-related and non-recurring items. Segment revenues therefore do not tie to the GAAP revenue lines in the same period, and are not meant to.
• Capital metrics are point-in-time balances as of each period end, except inflows, which are the amount raised during the period. Total and Fee-Earning Assets Under Management are taken from the rollforward tables, which are printed in thousands of dollars. Perpetual Capital Assets Under Management is stated by Blackstone in the narrative in billions rounded to one decimal place -- $555.6 billion at June 30, 2026, $523.6 billion at December 31, 2025 and $444.8 billion at December 31, 2024 -- so those three figures carry that rounding. Neither filing states Perpetual Capital as of June 30, 2025 or December 31, 2023, so those are left empty.
• Net Accrued Performance Revenues is the accrued performance revenue receivable net of the related accrued performance compensation, and is reconciled to GAAP Investments. The 10-Q's reconciliation compares June 30, 2026 with June 30, 2025 (not with December 31, 2025), which is why the June 2025 figure of $6.61 billion sits against the December 2025 figure of $6.74 billion from the 10-K.
• The trailing-twelve-month view is derived: the fiscal year ended December 31, 2025 less the six months ended June 30, 2025 plus the six months ended June 30, 2026. It carries no per-share amount or weighted-average share count, because neither filing publishes a weighted-average share count for a twelve-month period ending June 30.
• Capital expenditure for this business is the purchase of furniture, equipment and leasehold improvements -- the only investing outflow of that kind either filing reports. Free cash flow is operating cash flow less that amount. FY2023 investing activities also include $5.4 million paid for acquisitions, which is why net cash used in investing that year exceeds capital expenditure.
• Blackstone had 742,180,737 shares of common stock outstanding as of February 20, 2026 per the 10-K cover, and 750,625,114 as of July 31, 2026 per the 10-Q cover. The weighted-average diluted counts used for earnings per share are higher because they include unvested participating and vested deferred restricted shares.
• Dividends declared per share are as declared in each period: $1.16 in Q2 2026 against $0.93 in Q2 2025, and $4.69 for 2025 against $3.45 for 2024 and $3.32 for 2023. Blackstone's dividend varies with distributable earnings rather than being set at a fixed rate.
• No stock splits, ADR conversion or currency translation apply. Blackstone has had no stock split in the period covered, files as a domestic issuer, and reports in US dollars.

Uncertainties

• Operating and free cash flow for the three months ended June 30, 2026 and June 30, 2025 are not in this record. The Q2 2026 10-Q publishes cash flows for the six-month periods only, and no discrete quarterly cash flow statement is available in either filing read for this record, so a three-month figure could not be derived without reaching outside them.
• Perpetual Capital Assets Under Management as of June 30, 2025 and December 31, 2023 is not stated in either filing and is left empty, so the perpetual-capital series here cannot be read as a continuous quarter-by-quarter history.
• Net Accrued Performance Revenues as of December 31, 2023 is not presented in the FY2025 10-K, whose reconciliation shows only December 31, 2025 and 2024, so FY2023 carries no figure for it.
• The three Perpetual Capital figures are rounded by Blackstone to one decimal place in billions of dollars, so they are less precise than every other figure in this record, which is stated to the dollar.
• The trailing-twelve-month figures are arithmetic from three reported columns rather than a column Blackstone prints in the 10-K or 10-Q. They are internally consistent with those columns but are not, themselves, a reported period.

Company details

Fiscal period