Table of Contents
Condensed Consolidated Statements of Financial Condition as of September 30, 2026 and December 31, 2025
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2026 and 2025
Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2026 and 2025
Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2026 and 2025
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025
Notes to Condensed Consolidated Financial Statements
Other Information
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Forward-Looking Statements
This report may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “scheduled,” “estimates,” “anticipates,” “opportunity,” “leads,” “forecast,” “possible” 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. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in our subsequent filings with the United States Securities and Exchange Commission (“SEC”), 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 report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Website and Social Media Disclosure
We may use our website (www.blackstone.com), Facebook page (www.facebook.com/blackstone), X (Twitter) (www.x.com/blackstone), LinkedIn (www.linkedin.com/company/blackstonegroup), Instagram (www.instagram.com/blackstone), SoundCloud (www.soundcloud.com/blackstone-300250613), Pandora (https://www.pandora.com/artist/blackstone/ARvlPz9Plblrlmg), PodBean (https://insideblackstone.podbean.com/), Spotify (https://open.spotify.com/show/5tSTm8KyzHRko8hD5vmW9b and https://open.spotify.com/artist/52Eom8vQxM8Lk75ZZlf2hJ), YouTube (www.youtube.com/user/blackstonegroup), Apple Podcast (https://podcasts.apple.com/ug/podcast/inside-blackstone/id6808978952), Podchaser (https://www.podchaser.com/podcasts/inside-blackstone-6604179), iHeart Radio (https://www.iheart.com/podcast/1333-inside-blackstone-343378595) and Amazon Music (https://music.amazon.com/podcasts/0272bba6-0230-4043-ab29-c3573216703e/inside-blackstone) accounts as channels of distribution of company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone when you enroll your email address by visiting the “Contact Us/E-mail Alerts” section of our website at http://ir.blackstone.com. The contents of our website, any alerts and social media channels are not, however, a part of this report.
In this report, references to “Blackstone,” the “Company,” “we,” “us” or “our” refer to Blackstone Inc. and its consolidated subsidiaries.
“Series I Preferred Stockholder” refers to Blackstone Partners L.L.C., the holder of the sole outstanding share of our Series I preferred stock.
“Series II Preferred Stockholder” refers to Blackstone Group Management L.L.C., the holder of the sole outstanding share of our Series II preferred stock.
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“Blackstone Holdings,” “Blackstone Holdings Partnerships” or “Holdings Partnerships” refer to Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P., collectively.
“Blackstone Funds,” “our funds” and “our investment funds” refer to the funds and other vehicles that are managed by Blackstone. “Our carry funds” refers to funds managed by Blackstone that have commitment-based multi-year drawdown structures that pay carry on the realization of an investment.
“Our hedge funds” refers to our funds of hedge funds, hedge funds, certain of our real estate debt investment funds and certain other credit-focused funds which are managed by Blackstone.
We refer to our separately managed accounts as “SMAs.”
“Total Assets Under Management” refers to the invested and available capital in Blackstone-managed or advised vehicles (including, without limitation, investment funds and SMAs). The Total Assets Under Management attributable to an individual vehicle is dependent on the structure and investment strategy of such vehicle and accordingly, will vary from vehicle to vehicle. Total Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable:
a vehicle’s invested capital at fair value which, as applicable, is measured as (1) total investments measured at fair value, or gross asset values, each of which may include the fair value of investments purchased with leverage under certain credit facilities, (2) net asset value, or (3) amount of debt and equity outstanding or aggregate par amount of assets, including principal cash for collateralized loan obligation vehicles (“CLOs”), and
a vehicle’s available capital, if any, which represents (1) uncalled commitments made by investors and (2) available borrowing capacity under certain credit facilities.
Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, perpetual capital vehicles, co-investment vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Total Assets Under Management are reported in the segment where the assets are managed.
Our measurement of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and our personnel. Our calculation of Total Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. Our definition of Total Assets Under Management differs from the manner in which affiliated investment advisors report regulatory assets under management and may differ from the definition set forth in the agreements governing the vehicles we manage or advise.
“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees and/or performance revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
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Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Fee-Earning Assets Under Management are reported in the segment where the Total Assets Under Management are reported to the extent fee-paying to Blackstone.
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees, Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only performance revenues. Our calculation of Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. Our definition of Fee-Earning Assets Under Management may differ from the definition set forth in the agreements governing the vehicles that we manage or advise.
“Perpetual Capital” refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows or where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.
Commitment-based drawdown structured funds generally do not permit investors to redeem their interests at their election. Certain of our open-ended vehicles generally afford an investor the right to withdraw or redeem their interests on a periodic basis (for example, annually, quarterly or monthly), typically with 2 to 95 days’ notice, depending on the fund and the liquidity profile of the underlying assets. In our Perpetual Capital vehicles where redemption rights exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Investment advisory agreements related to certain SMAs in our Credit & Insurance and Multi-Asset Investing segments, excluding SMAs in our insurance platform, may generally be terminated by an investor on 15 to 95 days’ notice. SMAs in our insurance platform can generally only be terminated for long-term underperformance, cause and certain other limited circumstances, in each case subject to Blackstone’s right to cure.
This report does not constitute an offer of any Blackstone Fund.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with Blackstone Inc.’s condensed consolidated financial statements and the related notes included within this Quarterly Report on Form 10-Q.
Our Business
Blackstone is the world’s largest alternative asset manager. We generate revenue from fees earned pursuant to contractual arrangements with funds, fund investors and fund portfolio companies (including management, transaction and monitoring fees), and from capital markets services. We also invest in the funds we manage and we are entitled to a pro-rata share of the income of the fund (a “pro-rata allocation”). In addition to a pro-rata allocation, and assuming certain investment returns are achieved, we are entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”). In certain investment fund structures, we receive a contractual incentive fee from the fund based on achieving certain investment returns (an “Incentive Fee,” and together with Performance Allocations, “Performance Revenues”). The composition of our revenues will vary based on market conditions and the cyclicality of the different business units we operate. Net investment gains and investment income generated by Blackstone Funds are driven by the performance of underlying investments in such funds as well as overall market conditions. Fair values are affected by changes in the fundamentals of our funds’ portfolio companies and other investments, the industries in which they operate, the overall economy and other market conditions.
Our business is organized into four segments:
Real Estate
Our Real Estate business is a global leader in real estate investing and operates as one globally integrated business with investments across the globe, including in the Americas, Europe and Asia. Our real estate investment teams seek to utilize our global expertise and presence to generate attractive risk-adjusted returns for our investors.
Our Blackstone Real Estate Partners (“BREP”) business is geographically diversified and targets a broad range of opportunistic real estate and real estate-related investments. The BREP platform includes global funds as well as funds focused specifically on Europe or Asia investments. BREP seeks to invest thematically in high-quality, well-located assets where we see outsized growth potential driven by global economic and demographic trends. BREP has made significant investments in logistics, data centers, rental housing, hospitality, office and retail properties around the world, as well as in a variety of real estate operating companies.
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Our Core+ real estate strategy invests in substantially stabilized real estate globally, primarily through Perpetual Capital vehicles. The strategy includes our (a) Blackstone Property Partners (“BPP”) funds, which are focused on high-quality assets in the Americas, Europe and Asia, (b) a non-listed real estate investment trust (“REIT”), Blackstone Real Estate Income Trust, Inc. (“BREIT”) and Blackstone European Property Income Fund (“BEPIF”) vehicles, which provide income-focused individual investors access to institutional quality real estate primarily in the Americas and Europe, respectively, and (c) a NYSE-listed REIT focused on acquiring and owning data centers, Blackstone Digital Infrastructure Trust (“BXDC”).
Our Blackstone Real Estate Debt Strategies (“BREDS”) platform primarily targets real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate mortgage loans and liquid real estate-related debt securities. The BREDS platform includes high-yield BREDS funds, lower-yielding debt (including “BREC”) funds, liquid debt funds, capital managed on behalf of our Credit & Insurance segment, and Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed mortgage REIT.
Private Equity
Our Private Equity segment includes: (a) Private Equity Strategies (described below), (b) Infrastructure, which includes (1) our infrastructure-focused funds for institutional investors with a primary focus on the U.S. and Europe (Blackstone Infrastructure Partners or “BIP”) and (2) a private wealth-focused platform offering eligible individual investors access to our infrastructure capabilities (Blackstone Infrastructure Strategies or “BXINFRA”), (c) our secondaries business (“Secondaries”), which includes Strategic Partners Fund Solutions (“Strategic Partners”) and our GP Stakes business (“Blackstone GP Stakes” or “BXGP”), (d) our capital markets services business (Blackstone Capital Markets or “BXCM”) and (e) a private wealth-focused platform offering eligible individuals exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment (Blackstone Total Alternatives Solution or “BTAS”).
Our Private Equity Strategies include: (a) our Corporate Private Equity business (described below), (b) our hybrid capital investment platform that invests flexibly across asset classes, industries and geographies (Blackstone Tactical Opportunities or “Tactical Opportunities”), (c) our life sciences investment platform (Blackstone Life Sciences or “BXLS”), (d) our growth equity investment platform (Blackstone Growth or “BXG”) and (e) a private wealth-focused platform offering eligible individual investors access to Blackstone’s private equity capabilities (Blackstone Private Equity Strategies Fund or “BXPE”).
Our Corporate Private Equity business consists of: (a) our global private equity funds (Blackstone Capital Partners or “BCP”), (b) our Asia-focused private equity funds (Blackstone Capital Partners Asia or “BCP Asia”), (c) our sector-focused funds, including our energy- and energy transition-focused funds (Blackstone Energy Transition Partners or “BETP”) and (d) our core private equity funds (Blackstone Core Equity Partners or “BCEP”).
We are a global leader in private equity investing. Our Corporate Private Equity business pursues transactions across industries on a global basis. It strives to create value by investing in great businesses where our capital, strategic insight, global relationships and operational support can drive transformation. Corporate Private Equity’s investment strategies and core themes continually evolve in anticipation of, or in response to, changes in the global economy, local markets, regulation, capital flows and geopolitical trends. We seek to construct a differentiated portfolio of investments with a well-defined, post-acquisition value creation strategy. Similarly, we seek investments that can generate strong unlevered returns regardless of entry or exit cycle timing. BCEP pursues control-oriented investments in high-quality companies with durable businesses and seeks to offer a lower level of risk and a longer hold period than traditional private equity.
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Tactical Opportunities pursues a thematically driven, hybrid capital investment strategy. Our flexible, global mandate enables us to find differentiated opportunities across asset classes, industries and geographies and invest behind them with the frequent use of structure to generate attractive risk-adjusted returns. Tactical Opportunities’ ability to dynamically shift focus to the most compelling opportunities in any market environment, combined with the business’ expertise in structuring complex transactions, enables Tactical Opportunities to invest in attractive market areas, often with securities that provide downside protection and maintain upside return.
BXLS invests across the life cycle of companies and products within the life sciences sector. BXLS primarily focuses on investments in life sciences products in late-stage clinical development within the pharmaceutical, biotechnology and medical technology sectors.
BXG seeks to deliver attractive risk-adjusted returns by investing in dynamic, growth-stage businesses, with a focus on the consumer, consumer technology, enterprise solutions, financial services and healthcare sectors.
BXPE invests primarily in privately negotiated, equity-oriented investments, leveraging Blackstone’s private equity talent and investment capabilities to create an attractive portfolio of alternative investments diversified across geographies and sectors.
BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure, transportation, digital infrastructure and water and waste. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. BXINFRA invests primarily in infrastructure equity, secondaries and credit strategies, leveraging Blackstone’s infrastructure talent and investment capabilities to create an attractive portfolio of alternative infrastructure investments.
Strategic Partners is a total fund solutions provider. As a secondary investor, it acquires interests in high-quality private funds from original holders seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and growth capital, credit and other types of funds, as well as general partner-led transactions and primary investments and co-investments with financial sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments in private funds and co-investments. Blackstone GP Stakes targets minority investments in the general partners of private equity and other private market alternative asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation.
Credit & Insurance
Our Credit & Insurance segment (“BXCI”) is one of the largest credit managers in the world offering its clients and borrowers comprehensive solutions across investment grade and non-investment grade private and liquid credit. The investment portfolios BXCI’s credit platform manages or sub-advises consist primarily of loans and securities of non-investment and investment grade companies spread across the capital structure, including senior debt, subordinated debt, preferred stock and common equity.
BXCI is organized into three overarching credit investing strategies: private corporate credit strategies, infrastructure and asset based credit strategies and liquid corporate credit strategies. The private corporate credit and infrastructure and asset based credit strategies are each private credit strategies, where the portfolios of such strategies consist primarily of privately originated and directly negotiated illiquid or less liquid credit. The liquid corporate credit strategy is a liquid credit strategy, where the portfolio of such strategy consists primarily of traditional bank-syndicated and actively traded credit.
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Our private corporate credit strategies provide financing solutions to borrowers across a breadth of credit instruments, including senior direct lending and opportunistic credit. The direct lending funds include Blackstone Private Credit Fund (“BCRED”), Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”), as well as Blackstone European Private Credit Fund (“ECRED”).
Our infrastructure and asset based credit strategies consist primarily of energy strategies (including our sustainable resources platform), infrastructure debt, and asset based finance strategies focused on privately originated, income-oriented credit assets secured by physical, financial or residential real estate collateral.
Our liquid corporate credit strategies include investment grade corporate debt, high yield debt and broadly syndicated loans. These portfolios are managed through closed-ended funds, open-ended funds, systematic strategies, CLOs and SMAs.
BXCI also has an insurance platform that focuses on providing investment management services for insurance and reinsurance accounts, seeking to deliver customized and diversified portfolios consisting primarily of investment grade credit, including through Blackstone’s private credit origination capabilities. Through this insurance platform, we provide our clients tailored portfolio construction, strategic asset allocation and specialized analytical tools. While focusing on policyholder protection, we seek to achieve risk-managed, liability-matched and capital-efficient returns, as well as diversification and capital preservation. We also provide similar services to clients through SMAs or by sub-managing assets for certain insurance-dedicated funds and special purpose vehicles.
Multi-Asset Investing
Our Multi-Asset Investing segment (“BXMA”) is the world’s largest discretionary allocator to hedge funds and is a leader in building multi-asset portfolios. BXMA invests across asset classes in both public and private markets aiming to generate compelling risk-adjusted returns.
BXMA is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management and Public Real Assets. Absolute Return manages a broad range of commingled and customized portfolios and aims to generate consistent returns across market environments. Multi-Strategy aims to generate strong risk-adjusted returns through opportunistic, asset-class agnostic investing, and includes Blackstone Multi-Strategy Hedge Fund L.P. (“BXHF”), a perpetual multi-strategy hedge fund product for the individual investor channel. Total Portfolio Management manages large-scale total portfolios across asset classes in both public and private markets. The Public Real Assets platform is managed by Harvest Fund Advisors LLC (“Harvest”), which primarily invests in publicly traded energy infrastructure, renewables and master limited partnerships holding midstream energy assets in North America.
Business Environment
Blackstone’s businesses are materially affected by conditions in the financial markets and economic conditions in the U.S., Europe, Asia and, to a lesser extent, elsewhere in the world.
The U.S. economy continued to show fundamental strength in the third quarter, benefitting in particular from artificial intelligence- and energy-related capital expenditures, while higher bond yields and ongoing geopolitical turbulence contributed to equity market volatility. The ten-year U.S. Treasury yield increased 82 basis points in the third quarter to 5.28%, the highest level in nearly two decades, and subsequently declined to 4.91% as of November 2, 2026. Inflation in the U.S. remained elevated, reflecting in part higher energy prices.
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Against this backdrop, global equity market performance was positive overall in the third quarter, but with divergent performance across sectors. The total return of the S&P 500 Index was 2.3%, with the energy and information technology sectors exhibiting the largest gains of 17.2% and 7.2%, respectively. By contrast, the utilities and industrials sectors were the worst performers, declining 12.4% and 9.7%, respectively, as higher interest rates weighed on capital-intensive sectors. In credit markets, the total return of the S&P Leveraged Loan Index was 1.9% and the ICE Bank of America High Yield Bond Index declined 1.8%. High yield spreads widened by 41 basis points quarter-over-quarter.
U.S. capital markets activity slowed following an active first half of the year, with initial public offering volumes decreasing 46% year-over-year and announced merger and acquisition deal volumes decreasing 18% year-over-year. Despite the slow down in the third quarter, for the nine months ended September 30, 2026, initial public offering and announced merger and acquisition deal volumes increased 236% and 36%, respectively, compared to the same period in 2025.
U.S. economic growth has remained resilient. The Bureau of Economic Analysis’ advance estimate of U.S. real GDP indicated annualized growth of 3.0% quarter-over-quarter, up from 2.2%. Wages rose 3.0% year-over-year in September 2026. Demand for retail and food services also remained strong, with sales increasing 6.3% year-over-year. The labor market remained stable, with the unemployment rate at 4.2% as of September 2026 compared to 4.2% in June 2026.
Inflation remained above the Federal Reserve’s target rate of 2% amid persistently higher energy prices. CPI increased 3.7% year-over-year in September, compared to 3.5% growth in June 2026. Oil prices increased quarter-over-quarter, with the price of West Texas Intermediate crude oil increasing 30.1% to $90.42 per barrel. The Federal Reserve increased the federal funds target range to 3.75-4.00% in September, which it then held steady in October. Three-month SOFR increased 22 basis points quarter-over-quarter to 3.90%.
Outside of the U.S., central banks have pursued a variety of policy approaches in response to regional economic conditions. The Bank of England left its bank rate unchanged at 3.75% through the third quarter. Inflation in the U.K. increased to 3.5% year-over-year in September 2026 from 2.6% in June of 2026. The European Central Bank increased its deposit facility rate by 25 basis points to 2.50% in September 2026 amid continued inflationary pressures associated with higher energy prices. The Bank of Japan increased its policy rate to 1.25% in September 2026 from 1.00%, as policymakers balanced inflation concerns against economic growth considerations. The People’s Bank of China left its rate unchanged at 3.0% for its one-year prime loan.
Overall, the U.S. economy has remained resilient, driven in part by momentum from artificial intelligence- and energy-related capital expenditures. Nevertheless, elevated interest rates and continued geopolitical uncertainty have contributed to equity market volatility and negatively impacted investor sentiment and transaction activity. A durable resolution to the ongoing geopolitical conflicts and a more favorable interest rate environment could provide a basis for stronger equity markets and improved transaction activity.
For additional information on the potential impact on each of our business segments of the conditions described above see “—Segment Analysis”.
Notable Transactions
On November 2, 2026, Blackstone, through its subsidiary Blackstone Reg Finance Co. L.L.C., issued $600.0 million aggregate principal amount 5.650% senior notes due November 3, 2031 (the “Registered 2031 Notes”), and $500.0 million aggregate principal amount of 5.900% senior notes due November 3, 2033 (the “Registered 2033 Notes”) and, together with the Registered 2031 Notes, (the “Registered Notes”), pursuant to a Registration Statement on Form S-3. Blackstone intends to use the net proceeds from the sale of the Registered Notes for general corporate purposes. For additional information see Note 11. “Borrowings” in the “Notes to Condensed Consolidated Financial Statements” in “— Item 1. Financial Statements” and “—Liquidity and Capital Resources —Sources and Uses of Liquidity.”
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Organizational Structure
The simplified diagram below depicts our current organizational structure. The diagram does not depict all of our subsidiaries, including intermediate holding companies through which certain of the subsidiaries depicted are held.
Key Financial Measures and Indicators
We manage our business using certain financial measures and key operating metrics since we believe these metrics measure the productivity of our investment activities. We prepare our condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See “—Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 2. Summary of Significant Accounting Policies” and “—Critical Accounting Policies.” Our key non-GAAP financial measures and operating indicators and metrics are discussed below.
Distributable Earnings
Distributable Earnings is derived from Blackstone’s segment reported results. Distributable Earnings is used to assess performance and amounts available for dividends to Blackstone stockholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. Distributable Earnings is the sum of Segment Distributable Earnings plus Net Interest and Dividend Income (Loss) less Taxes and Related Payables. Distributable Earnings excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Distributable Earnings.
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Net Interest and Dividend Income (Loss) is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of consolidation of Blackstone funds, and interest expense associated with the Tax Receivable Agreement.
Taxes and Related Payables represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and including the payable under the Tax Receivable Agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and Distributable Earnings reflects the benefit of deductions available to the Company on certain expense items that are excluded from the underlying calculation of Segment Distributable Earnings and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related and Non-Recurring Items where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone’s Condensed Consolidated Statements of Operations under GAAP, excluding the impact of divestitures and accrued tax contingency-related liabilities or refunds which are reflected when paid or received. The payable under the Tax Receivable Agreement reflects the expected amount of tax savings generated in the period that parties to the Tax Receivable Agreement are entitled to receive in future periods. Management believes that including the amount payable under the Tax Receivable Agreement and utilizing the current income tax provision adjusted as described above when calculating Distributable Earnings is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to stockholders.
Segment Distributable Earnings
Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. Blackstone believes it is useful to stockholders to review the measure that management uses in assessing segment performance. Segment Distributable Earnings represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone funds, eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related and Non-Recurring Items. Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains, losses, or other charges, if any. 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, gains or losses associated with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of Blackstone’s operational performance. Segment Distributable Earnings excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Segment Distributable Earnings.
Net Realizations is presented on a segment basis and is the sum of Realized Principal Investment Income and Realized Performance Revenues (which refers to Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation (which refers to Realized Performance Compensation excluding Fee Related Performance Compensation and Equity-Based Performance Compensation).
Realized Performance Compensation reflects, pursuant to an ongoing compensation program, an increase in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to them. The expectation is that for the full year 2026, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year in respect of this compensation program. The program, which typically has an impact on individual quarters based on the estimated amounts for the full
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year, does not impact Income Before Provision (Benefits) for Taxes and Distributable Earnings for the full year. For the three months ended September 30, 2026, there was no change in Realized Performance Compensation and Fee Related Compensation decreased by $17.5 million, which had no impact on Net Realizations, increased Fee Related Earnings and had a positive impact to Income Before Provision (Benefits) for Taxes and Distributable Earnings. For the nine months ended September 30, 2026, Realized Performance Compensation increased by $68.2 million and Fee Related Compensation decreased by $52.5 million, which reduced Net Realizations, increased Fee Related Earnings and had a negative impact to Income Before Provision (Benefits) for Taxes and Distributable Earnings. These changes had an impact on individual quarters but did not impact Income Before Provision (Benefits) for Taxes and Distributable Earnings for the year ended December 31, 2025.
Fee Related Earnings
Fee Related Earnings is a performance measure used to assess Blackstone’s ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. Blackstone believes Fee Related Earnings is useful to stockholders as it provides insight into the profitability of the portion of Blackstone’s business that is not dependent on realization activity. Fee Related Earnings equals management and advisory fees (net of management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment basis and (b) Other Operating Expenses. Fee Related Earnings is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Fee Related Earnings.
Fee Related Compensation is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation, directly related to (a) Management and Advisory Fees, Net and (b) Fee Related Performance Revenues, referred to as Fee Related Performance Compensation.
Fee Related Performance Revenues refers to the realized portion of Performance Revenues from Perpetual Capital that are (a) measured and received on a recurring basis and (b) not dependent on realization events from the underlying investments.
Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a) remove transaction-related and non-recurring items that arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains, losses or other charges, if any, (b) remove certain expenses reimbursed by the Blackstone Funds which are netted against Management and Advisory Fees, Net in Blackstone’s segment presentation and (c) give effect 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.
Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization
Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (“Adjusted EBITDA”), is a supplemental measure used to assess performance derived from Blackstone’s segment results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables and (c) Depreciation and Amortization. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Adjusted EBITDA.
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Net Accrued Performance Revenues
Net Accrued Performance Revenues is a non-GAAP financial measure Blackstone believes is useful to stockholders as an indicator of potential future realized Performance Revenues based on the current investment portfolio of the funds and vehicles we manage. Net Accrued Performance Revenues represents the accrued Performance Revenues receivable by Blackstone, net of the related accrued Performance Compensation payable by Blackstone, excluding Performance Revenues that have been realized but not yet distributed as of the reporting date and clawback amounts, if any. Net Accrued Performance Revenues is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Investments. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues and Note 2. “Summary of Significant Accounting Policies — Equity Method Investments” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” for additional information on the calculation of Investments — Accrued Performance Allocations.
Operating Metrics
The alternative asset management business is primarily based on managing third-party capital and does not require substantial capital investment to support rapid growth. Since our inception, we have developed and used various key operating metrics to assess and monitor the operating performance of our various alternative asset management businesses in order to monitor the effectiveness of our value-creating strategies.
Total and Fee-Earning Assets Under Management
a vehicle’s invested capital at fair value which, as applicable, is measured as (1) total investments measured at fair value, or gross asset values, each of which may include the fair value of investments purchased with leverage under certain credit facilities, (2) net asset value, or (3) amount of debt and equity outstanding or aggregate par amount of assets, including principal cash for CLOs, and
Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, Perpetual Capital vehicles, co-investment vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
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“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees and/or Performance Revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees, Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only Performance Revenues. Our calculation of Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. Our definition of Fee-Earning Assets Under Management may differ from the definition set forth in the agreements governing the vehicles that we manage or advise.
Perpetual Capital
In our Perpetual Capital vehicles where redemption rights exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital. We believe this measure is useful to stockholders as it represents capital we manage that has a longer duration and the ability to generate recurring revenues in a different manner than traditional fund structures.
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Dry Powder
Dry Powder represents the amount of capital available for investment or reinvestment, including general partner and employee capital, and is an indicator of the capital we have available for future investments. We believe this measure is useful to stockholders as it provides insight into the extent to which capital is available for Blackstone to deploy capital into investment opportunities as they arise.
Invested Performance Eligible Assets Under Management
Invested Performance Eligible Assets Under Management represents invested capital at fair value on which Performance Revenues could be earned if certain hurdles are met. We believe Invested Performance Eligible Assets Under Management is useful to stockholders as it provides insight into the capital deployed that has the potential to generate Performance Revenues.
Private Wealth Assets Under Management
“Private Wealth Assets Under Management” refers to the portion of assets under management attributable to the individual investor channel and comprises (a) all Assets Under Management in vehicles or share classes of vehicles, in each case that are primarily targeted to the individual investor channel (including parallel or related vehicles) and (b) Assets Under Management attributable only to individual investors (including through private wealth distribution agreements) in vehicles that are not primarily targeted to the individual investor channel.
Recent Tax Developments
On February 18, 2026, the U.S. Internal Revenue Service (“IRS”) issued guidance which provides for additional adjustments to the calculation of the corporate alternative minimum tax (“CAMT”). Based on the available guidance, Blackstone does not believe such adjustments to the CAMT calculation will materially impact its Provision for Taxes.
Consolidated Results of Operations
Following is a discussion of our consolidated results of operations. For a more detailed discussion of the factors that affected the results of our four business segments (which are presented on a basis that deconsolidates the investment funds, eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships and removes the amortization of intangible assets and Transaction-Related and Non-Recurring Items) in these periods, see “—Segment Analysis” below.
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The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the three and nine months ended September 30, 2026 and 2025:
Revenues
Management and Advisory Fees, Net
Incentive Fees
Investment Income (Loss)
Performance Allocations
Realized
Unrealized
Principal Investments
Total Investment Income (Loss)
Interest and Dividend Revenue
Other
Total Revenues
Expenses
Compensation and Benefits
Compensation
Incentive Fee Compensation
Performance Allocations Compensation
Total Compensation and Benefits
General, Administrative and Other
Interest Expense
Fund Expenses
Total Expenses
Other Income
Net Gains from Fund Investment Activities
Total Other Income
Income Before Provision for Taxes
Provision for Taxes
Net Income
Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
Net Income Attributable to Non-Controlling Interests in Consolidated Entities
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
Net Income Attributable to Blackstone Inc.
n/m Not meaningful.
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Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025
Revenues were $3.1 billion for the three months ended September 30, 2026, a decrease of $25.7 million compared to the three months ended September 30, 2025. The decrease in Revenues was primarily attributable to decreases of $121.1 million in Investment Income and $27.9 million in Incentive Fees, partially offset by increases of $121.9 million in Management and Advisory Fees, Net.
Investment Income was $574.4 million for the three months ended September 30, 2026, a decrease of $121.1 million, compared to $695.5 million for the three months ended September 30, 2025. The decrease in Investment Income was attributable to a decrease of $198.3 million in Realized Investment Income, partially offset by an increase of $77.2 million in Unrealized Investment Income.
The $198.3 million decrease in Realized Investment Income was primarily attributable to lower realized gains in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The principal drivers were:
A decrease of $201.0 million in our Private Equity segment primarily attributable to lower realizations in Secondaries, related to the sale of an interest in the GP Stakes portfolio in the third quarter of 2025.
Partially offset by an increase of $27.0 million in our Credit & Insurance segment primarily attributable to higher realized Performance Revenues in energy funds within infrastructure and asset based credit strategies.
The $77.2 million increase in Unrealized Investment Income was primarily attributable to lower unrealized depreciation in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The principal drivers were:
An increase of $490.3 million in our Credit & Insurance segment primarily attributable to higher unrealized appreciation of Corebridge common stock.
Partially offset by:
A decrease of $306.9 million in our Private Equity segment primarily attributable to unrealized depreciation of certain Corporate Private Equity funds.
A decrease of $63.4 million in our Real Estate segment primarily attributable to unrealized depreciation of Blackstone’s investment in certain BREDS and Core+ funds.
Incentive Fees were $172.7 million for the three months ended September 30, 2026, a decrease of $27.9 million, compared to $200.7 million for the three months ended September 30, 2025. The decrease in Incentive Fees was primarily attributable to a decrease in our Credit & Insurance segment of $39.2 million. The decrease in our Credit & Insurance segment was primarily attributable to BCRED and BXSL.
Management and Advisory Fees, Net were $2.2 billion for the three months ended September 30, 2026, an increase of $121.9 million, compared to $2.1 billion for the three months ended September 30, 2025. The increase in Management and Advisory Fees, Net was primarily attributable to an increase in our Private Equity segment of $120.7 million. The increase in our Private Equity segment was primarily attributable to an increase in Base Management Fees due to increased Fee-Earning Assets Under Management in BXPE, BIP and BXINFRA and an increase in Transaction, Advisory and Other Fees, Net due to increased transaction activity in BXCM.
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Expenses were $1.6 billion for the three months ended September 30, 2026, a decrease of $125.4 million, compared to $1.8 billion for the three months ended September 30, 2025. The decrease was primarily attributable to a decrease of $164.5 million in Total Compensation and Benefits, of which $207.0 million was a decrease in Performance Allocations Compensation, partially offset by an increase of $55.1 million in Compensation. The decrease in Performance Allocations Compensation was primarily attributable to the decrease in Investment Income (Loss), on which a portion of Performance Allocations Compensation is based. The increase in Compensation was primarily attributable to the increase in Management and Advisory Fees, Net, on which a portion of Compensation is based.
Other Income was $93.4 million for the three months ended September 30, 2026, a decrease of $15.2 million, compared to $108.6 million for the three months ended September 30, 2025. The decrease in Other Income was attributable to a decrease of $15.2 million in Net Gains from Fund Investment Activities. The decrease in Net Gains from Fund Investment Activities was primarily attributable to a decrease of $44.0 million in our Real Estate segment, partially offset by increases of $33.1 million in our Private Equity segment and $7.2 million in our Credit & Insurance segment.
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Revenues were $11.7 billion for the nine months ended September 30, 2026, an increase of $1.6 billion, compared to $10.1 billion for the nine months ended September 30, 2025. The increase in Revenues was primarily attributable to increases of $721.1 million in Investment Income and $596.7 million in Management and Advisory Fees, Net.
Investment Income was $4.2 billion for the nine months ended September 30, 2026, an increase of $721.1 million compared to $3.5 billion for the nine months ended September 30, 2025. The increase in Investment Income was primarily attributable to an increase of $844.1 million in Realized Investment Income, partially offset by a decrease of $123.0 million in Unrealized Investment Income.
The $844.1 million increase in Realized Investment Income was primarily attributable to higher realized gains in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The principal drivers were:
An increase of $518.9 million in our Private Equity segment primarily attributable to realizations in Corporate Private Equity and Tactical Opportunities, as well as higher Performance Revenues in BXPE, partially offset by lower realizations in Secondaries, related to the sale of an interest in the GP Stakes portfolio in the third quarter of 2025.
An increase of $455.5 million in our Real Estate segment primarily attributable to higher realized gains in BREP and higher Performance Revenues in BREIT.
Partially offset by a decrease of $170.2 million in our Credit & Insurance segment primarily attributable to the sale of Bistro, Blackstone’s internally developed portfolio visualization software platform, in the first quarter of 2025.
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The $123.0 million decrease in Unrealized Investment Income was primarily attributable to lower unrealized appreciation in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The principal drivers were:
A decrease of $513.1 million in our Private Equity segment primarily attributable to unrealized depreciation of certain Corporate Private Equity funds.
Partially offset by an increase of $465.6 million in our Real Estate segment primarily attributable to lower unrealized depreciation of investments in certain BREP funds.
The $596.7 million increase in Management and Advisory Fees, Net was primarily attributable to increases in our Private Equity segment of $389.1 million and in our Credit & Insurance segment of $190.8 million. The increase in our Private Equity segment was primarily attributable to an increase in Base Management Fees due to increased Fee-Earning Assets Under Management in BXPE, BIP, and BXINFRA and an increase in Transaction, Advisory and Other Fees, Net due to increased transaction activity in BXCM. The increase in our Credit & Insurance segment was primarily attributable to increased Transaction, Advisory and Other Fees, Net due to capital markets advisory revenues.
Expenses were $6.3 billion for the nine months ended September 30, 2026, an increase of $685.5 million, compared to $5.6 billion for the nine months ended September 30, 2025. The increase was primarily attributable to an increase of $540.7 million in Total Compensation and Benefits, of which $288.3 million was an increase in Performance Allocations Compensation and $285.3 million was an increase in Compensation. The increase in Performance Allocations Compensation was primarily attributable to an increase in Performance Allocations, on which a portion of Performance Allocations Compensation is based. The increase in Compensation was primarily attributable to the increase in Management and Advisory Fees, Net, on which a portion of Compensation is based.
Other Income was $333.3 million for the nine months ended September 30, 2026, an increase of $30.7 million, compared to $302.5 million for the nine months ended September 30, 2025. The increase in Other Income was attributable to an increase of $30.7 million in Net Gains from Fund Investment Activities. The increase in Net Gains from Fund Investment Activities was primarily attributable to an increase of $144.2 million in our Private Equity segment, partially offset by decreases of $63.1 million in our Real Estate segment and $45.8 million in our Multi-Asset Investing segment.
Blackstone’s Provision for Taxes for the three months ended September 30, 2026 was $258.6 million, an increase of $48.9 million, compared to $209.7 million for the three months ended September 30, 2025. This resulted in an effective tax rate of 16.9% and 14.5%, based on our Income Before Provision for Taxes of $1.5 billion and $1.4 billion for the three months ended September 30, 2026 and 2025, respectively.
The increase in Blackstone’s effective tax rate for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, relates primarily to the impact of Non-Controlling Interests in Consolidated Entities and Blackstone’s state tax provisions for the jurisdictions in which it operates.
Blackstone’s Provision for Taxes for the nine months ended September 30, 2026 was $908.1 million, an increase of $165.1 million, compared to $743.0 million for the nine months ended September 30, 2025. This resulted in an effective tax rate of 15.7% and 15.4%, based on our Income Before Provision for Taxes of $5.8 billion and $4.8 billion for the nine months ended September 30, 2026 and 2025, respectively.
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The increase in Blackstone’s effective tax rate for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, relates primarily to the impact of Non-Controlling Interests in Consolidated Entities.
Additional information regarding our income taxes can be found in Note 12. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Non-Controlling Interests in Consolidated Entities
The Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities is attributable to the consolidated Blackstone funds and Net Income Attributable to Non-Controlling Interests in Consolidated Entities is attributable to both the consolidated Blackstone funds and the portion of general partner entities owned by employees. The amounts of these items vary directly with the performance of the consolidated entities. For the consolidated Blackstone funds, the attribution to non-controlling interests largely reduces the amount of Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities and Fund Expenses attributable to Blackstone Inc. For the general partner entities, the non-controlling interests are attributed a portion of Realized and Unrealized Principal Investment Income.
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings is derived from the Income Before Provision for Taxes at the Blackstone Holdings level, excluding the Net Gains (Losses) from Fund Investment Activities and is based on the percentage allocation of the income between Blackstone personnel and others who are limited partners of Blackstone Holdings and Blackstone after considering any contractual arrangements that govern the allocation of income such as fees allocable to Blackstone.
For the three months ended September 30, 2026 and 2025, the Net Income Before Taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 36.9% and 37.5%, respectively. For the nine months ended September 30, 2026 and 2025, the Net Income Before Taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 37.1% and 37.7%, respectively. The respective decreases of 0.6% were primarily attributable to the conversion of Blackstone Holdings Partnership Units to shares of common stock and the vesting of shares of common stock.
The following graphs and tables summarize the Total Assets Under Management by Segment and Fee-Earning Assets Under Management by Segment, followed by a rollforward of activity for the three and nine months ended September 30, 2026 and 2025. For a description of how Assets Under Management and Fee-Earning Assets Under Management are determined, please see “—Key Financial Measures and Indicators — Operating Metrics — Total and Fee-Earning Assets Under Management.”
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Note: Totals may not add due to rounding.
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Total Assets Under Management
Balance, Beginning of Period
Inflows (a)
Outflows (b)
Net Inflows
Realizations (c)
Market Activity (d)(g)
Balance, End of Period (e)
Increase (Decrease)
Market Activity (d)(h)
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Fee-Earning Assets Under Management
Market Activity (d)(i)
Market Activity (d)(j)
Annualized Base Management Fee Rate (f)
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Inflows represent capital raised, contributions, other increases in available capital (recallable capital and increased side-by-side commitments), purchases, inter-segment allocations and acquisitions. Inflows are primarily driven by capital raised, which represents new capital to Blackstone vehicles, in the form of capital commitments and subscriptions, and other increases in available capital.
Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side commitments). Outflows are primarily driven by redemptions, where permitted by the vehicle; for commitment-based drawdown funds where redemptions are generally not permitted, outflows are primarily driven by decreases in available capital.
Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors from CLOs.
Market Activity includes realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations.
Total and Fee-Earning Assets Under Management are reported in the segment where the assets are managed.
Annualized Base Management Fee Rate represents annualized year to date Base Management Fee divided by the average of the beginning of year and each quarter end’s Fee-Earning Assets Under Management in the reporting period.
For the three months ended September 30, 2026, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(201.5) million, $47.4 million, $144.9 million, $(290.1) million and $(299.2) million for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended September 30, 2025, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(1.2) billion, $(392.0) million, $399.4 million, $(86.7) million and $(1.2) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
For the nine months ended September 30, 2026, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(2.1) billion, $(821.2) million, $(128.2) million, $(348.5) million and $(3.4) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the nine months ended September 30, 2025, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $7.7 billion, $3.3 billion, $3.1 billion, $201.0 million and $14.3 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
For the three months ended September 30, 2026, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(235.8) million, $(86.5) million, $183.5 million, $(290.1) million and $(428.9) million for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended September 30, 2025, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(495.1) million, $(16.5) million, $281.5 million, $(89.0) million and $(319.0) million for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
For the nine months ended September 30, 2026, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(1.6) billion, $(213.8) million, $(40.4) million, $(348.5) million and $(2.2) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the nine months ended September 30, 2025, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $5.9 billion, $573.6 million, $3.0 billion, $199.7 million and $9.7 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively.
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Total Assets Under Management and Fee-Earning Assets Under Management may have differences in the measurement and timing of certain activities that affect each of inflows, outflows, realizations and market activity. These differences include, but are not limited to:
For commitment-based drawdown funds, Total Assets Under Management inflows are generally reported at each fund closing whereas Fee-Earning Assets Under Management inflows are generally reported when a fund’s investment period commences. Fund closings and the investment period commencement generally occur in different periods and as such, Fee-Earning Assets Under Management inflows in such funds may exceed Total Assets Under Management inflows in the period when the investment period commences. Upon expiration of the investment period, Fee-Earning Assets Under Management outflows may exceed Total Assets Under Management outflows due to Fee-Earning Assets Under Management generally including invested capital subsequent to the investment period compared to committed capital during the investment period. This is most prevalent in our Real Estate and Private Equity segments.
For commitment-based drawdown funds, Total Assets Under Management realizations generally represents the total proceeds whereas Fee-Earning Assets Under Management generally represents only the invested capital. As such, Total Assets Under Management realizations typically exceeds Fee-Earning Assets Under Management realizations. This is most prevalent in our Real Estate and Private Equity segments.
For commitment-based drawdown funds, Total Assets Under Management is reported based on invested capital at fair value and available capital whereas Fee-Earning Assets Under Management is generally reported based on committed or remaining invested capital. As such, Total Assets Under Management market activity generally exceeds Fee-Earning Assets Under Management market activity. This is most prevalent in our Real Estate and Private Equity segments.
For certain credit funds, Total Assets Under Management are based on gross asset value while Fee-Earning Assets Under Management are based on net asset value. As such, Total Assets Under Management inflows, outflows, realizations and market activity for the period generally exceed the Fee-Earning Assets Under Management inflows, outflows, realizations and market activity for the period.
Total Assets Under Management were $1,368.3 billion at September 30, 2026, an increase of $22.1 billion compared to $1,346.3 billion at June 30, 2026. The net increase was due to:
In our Real Estate segment, a decrease of $5.2 billion from $314.1 billion at June 30, 2026 to $309.0 billion at September 30, 2026. The net decrease was due to realizations of $7.0 billion, market depreciation of $3.4 billion and outflows of $1.0 billion, partially offset by inflows of $6.3 billion.
Realizations were driven by $3.1 billion from BREP, $1.7 billion from BREDS and $1.4 billion from BREIT.
Market depreciation was driven by $2.9 billion from BREP and $1.4 billion from BREDS, partially offset by market appreciation of $1.1 billion from BREIT.
Outflows were driven by $857.3 million from BREIT.
Inflows were driven by $2.5 billion from BREIT and $2.3 billion from BREDS.
In our Private Equity segment, an increase of $11.3 billion from $454.2 billion at June 30, 2026 to $465.4 billion at September 30, 2026. The net increase was due to inflows of $12.6 billion and market appreciation of $9.6 billion, partially offset by realizations of $9.8 billion and outflows of $1.1 billion.
Inflows were driven by $3.7 billion from Infrastructure, $3.1 billion from Secondaries, $2.8 billion from Corporate Private Equity and $1.7 billion from BXPE.
Market appreciation was driven by $4.5 billion from Infrastructure, $2.4 billion from Secondaries and $1.9 billion from Corporate Private Equity.
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Realizations were driven by $3.6 billion from Corporate Private Equity, $2.4 billion from Tactical Opportunities, $1.8 billion from Secondaries and $1.1 billion from Infrastructure.
Outflows were driven by $265.7 million from Secondaries and $227.9 million from Infrastructure.
In our Credit & Insurance segment, an increase of $10.7 billion from $469.3 billion at June 30, 2026 to $480.0 billion at September 30, 2026. The net increase was due to inflows of $35.8 billion, partially offset by realizations of $15.4 billion, outflows of $9.1 billion and market depreciation of $554.6 million.
Inflows were driven by $18.0 billion from infrastructure and asset based credit strategies and $13.1 billion from private corporate credit strategies.
Realizations were driven by $8.6 billion from private corporate credit strategies and $5.2 billion from infrastructure and asset based credit strategies.
Outflows were driven by $6.3 billion from private corporate credit strategies.
Market depreciation was driven by $2.4 billion from liquid corporate credit strategies, partially offset by market appreciation of $1.2 billion from private corporate credit strategies.
In our Multi-Asset Investing segment, an increase of $5.3 billion from $108.6 billion at June 30, 2026 to $113.9 billion at September 30, 2026. The net increase was due to inflows of $8.6 billion and market appreciation of $320.3 million, offset by outflows of $2.8 billion and realizations of $874.1 million.
Inflows were driven by $6.1 billion from Absolute Return.
Market appreciation was driven by $373.6 million from Multi-Strategy.
Outflows were driven by $2.0 billion from Absolute Return.
Realizations were driven by $553.7 million from Multi-Strategy.
Total Assets Under Management were $1,368.3 billion at September 30, 2026, an increase of $93.4 billion compared to $1,274.9 billion at December 31, 2025. The net increase was due to:
In our Real Estate segment, a decrease of $10.3 billion from $319.3 billion at December 31, 2025 to $309.0 billion at September 30, 2026. The net decrease was due to realizations of $20.7 billion, outflows of $6.0 billion and market depreciation of $4.9 billion, partially offset by inflows of $21.3 billion.
Realizations were driven by $8.1 billion from BREP, $6.4 billion from BREDS and $4.2 billion from BREIT.
Outflows were driven by $3.0 billion from BREIT and $1.3 billion from BREP.
Market depreciation was driven by $4.0 billion from BREP and $3.2 billion from BPP and co-investment, partially offset by market appreciation of $3.8 billion from BREIT.
Inflows were driven by $7.8 billion from BREDS, $7.0 billion from BREIT, $2.4 billion from BREP and $2.0 billion from BXDC.
In our Private Equity segment, an increase of $49.0 billion from $416.4 billion at December 31, 2025 to $465.4 billion at September 30, 2026. The net increase was due to inflows of $57.5 billion and market appreciation of $31.7 billion, partially offset by realizations of $35.4 billion and outflows of $4.7 billion.
Inflows were driven by $17.2 billion from Secondaries, $17.1 billion from Corporate Private Equity, $9.2 billion from Infrastructure, $8.2 billion from BXPE, $2.8 billion from Tactical Opportunities and $2.3 billion from BXLS.
Market appreciation was driven by $13.9 billion from Infrastructure, $7.6 billion from Corporate Private Equity, $4.0 billion from Secondaries and $3.1 billion from BXPE.
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Realizations were driven by $17.3 billion from Corporate Private Equity, $6.5 billion from Secondaries, $6.5 billion from Tactical Opportunities and $3.0 billion from Infrastructure.
Outflows were driven by $1.2 billion from Corporate Private Equity and $1.2 billion from Secondaries.
In our Credit & Insurance segment, an increase of $37.0 billion from $443.0 billion at December 31, 2025 to $480.0 billion at September 30, 2026. The net increase was due to inflows of $103.8 billion and market appreciation of $1.9 billion, partially offset by realizations of $42.6 billion and outflows of $26.1 billion.
Inflows were driven by $49.3 billion from private corporate credit strategies, $38.9 billion from infrastructure and asset based credit strategies and $16.1 billion from liquid corporate credit strategies.
Market appreciation was driven by $2.4 billion from infrastructure and asset based credit strategies and $1.4 billion from private corporate credit strategies, partially offset by market depreciation of $2.2 billion from liquid corporate credit strategies.
Realizations were driven by $23.5 billion from private corporate credit strategies and $14.9 billion from infrastructure and asset based credit strategies.
Outflows were driven by $17.4 billion from private corporate credit strategies and $6.8 billion from liquid corporate credit strategies.
In our Multi-Asset Investing segment, an increase of $17.7 billion from $96.2 billion at December 31, 2025 to $113.9 billion at September 30, 2026. The net increase was due to inflows of $17.6 billion and market appreciation of $9.0 billion, offset by outflows of $6.6 billion and realizations of $2.2 billion.
Inflows were driven by $10.3 billion from Absolute Return, $3.5 billion from Multi-Strategy and $3.4 billion from Total Portfolio Management.
Market appreciation was driven by $4.6 billion from Absolute Return and $1.6 billion from Public Real Assets.
Outflows were driven by $5.0 billion from Absolute Return.
Realizations were driven by $1.3 billion from Multi-Strategy.
Fee-Earning Assets Under Management were $989.7 billion at September 30, 2026, an increase of $28.1 billion compared to $961.6 billion at June 30, 2026. The net increase was due to:
In our Real Estate segment, an increase of $402.3 million from $277.4 billion at June 30, 2026 to $277.8 billion at September 30, 2026. The net increase was due to inflows of $6.6 billion and market appreciation of $65.7 million, partially offset by realizations of $5.2 billion and outflows of $1.0 billion.
Inflows were driven by $2.5 billion from BREDS and $2.3 billion from BREIT.
Market appreciation was driven by $1.1 billion from BREIT, partially offset by market depreciation of $727.7 million from BREDS.
Realizations were driven by $1.8 billion from BREDS, $1.4 billion from BREIT and $1.3 billion from BREP.
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In our Private Equity segment, an increase of $18.5 billion from $267.8 billion at June 30, 2026 to $286.3 billion at September 30, 2026. The net increase was due to inflows of $22.0 billion and market appreciation of $4.5 billion, partially offset by realizations of $4.6 billion and outflows of $3.5 billion.
Inflows were driven by $15.5 billion from Corporate Private Equity and $3.0 billion from Infrastructure.
Market appreciation was driven by $3.7 billion from Infrastructure.
Realizations were driven by $1.5 billion from Corporate Private Equity and $1.2 billion from Tactical Opportunities.
Outflows were driven by $2.8 billion from Corporate Private Equity.
In our Credit & Insurance segment, an increase of $3.9 billion from $318.2 billion at June 30, 2026 to $322.1 billion at September 30, 2026. The net increase was due to inflows of $19.5 billion, partially offset by realizations of $8.7 billion, outflows of $5.5 billion and market depreciation of $1.5 billion.
Inflows were driven by $11.1 billion from infrastructure and asset based credit strategies and $6.2 billion from liquid corporate credit strategies.
Realizations were driven by $4.5 billion from infrastructure and asset based credit strategies and $2.8 billion from private corporate credit strategies.
Outflows were driven by $2.8 billion from private corporate credit strategies and $2.0 billion from liquid corporate credit strategies.
Market depreciation was driven by $2.2 billion from liquid corporate credit strategies, partially offset by market appreciation of $717.5 million from private corporate credit strategies.
In our Multi-Asset Investing segment, an increase of $5.3 billion from $98.1 billion at June 30, 2026 to $103.4 billion at September 30, 2026. The net increase was due to inflows of $7.3 billion and market appreciation of $307.5 million, offset by outflows of $1.5 billion and realizations of $808.2 million.
Inflows were driven by $5.2 billion from Absolute Return and $1.5 billion from Multi-Strategy.
Market appreciation was driven by $340.7 million from Multi-Strategy.
Outflows were driven by $824.7 million from Absolute Return.
Realizations were driven by $549.0 million from Multi-Strategy.
Fee-Earning Assets Under Management were $989.7 billion at September 30, 2026, an increase of $68.0 billion compared to $921.7 billion at December 31, 2025. The net increase was due to:
In our Real Estate segment, a decrease of $1.6 billion from $279.4 billion at December 31, 2025 to $277.8 billion at September 30, 2026. The net decrease was due to realizations of $14.9 billion, outflows of $3.9 billion and market depreciation of $863.9 million, partially offset by inflows of $18.0 billion.
Realizations were driven by $4.7 billion from BREDS, $4.2 billion from BREIT and $4.0 billion from BREP.
Outflows were driven by $3.0 billion from BREIT.
Market depreciation was driven by $3.2 billion from BPP and co-investment, $684.7 million from BREDS and $649.7 million from BREP (which included $649.7 million of foreign exchange depreciation), partially offset by market appreciation of $3.8 billion from BREIT.
Inflows were driven by $6.8 billion from BREIT, $5.2 billion from BREDS and $2.0 billion from BXDC.
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In our Private Equity segment, an increase of $45.4 billion from $241.0 billion at December 31, 2025 to $286.3 billion at September 30, 2026. The net increase was due to inflows of $56.8 billion and market appreciation of $14.9 billion, partially offset by realizations of $13.9 billion and outflows of $12.3 billion.
Inflows were driven by $24.3 billion from Corporate Private Equity, $11.5 billion from Secondaries, $8.2 billion from BXPE, $7.1 billion from Infrastructure, $2.8 billion from BXLS and $2.2 billion from Tactical Opportunities.
Market appreciation was driven by $11.5 billion from Infrastructure and $3.1 billion from BXPE.
Realizations were driven by $5.3 billion from Corporate Private Equity, $2.6 billion from Tactical Opportunities, $2.3 billion from Infrastructure and $1.8 billion from Secondaries.
Outflows were driven by $9.2 billion from Corporate Private Equity.
In our Credit & Insurance segment, an increase of $6.5 billion from $315.6 billion at December 31, 2025 to $322.1 billion at September 30, 2026. The net increase was due to inflows of $51.4 billion, partially offset by realizations of $25.9 billion, outflows of $18.6 billion and market depreciation of $436.3 million.
Inflows were driven by $23.3 billion from infrastructure and asset based credit strategies, $15.0 billion from liquid corporate credit strategies and $13.1 billion from private corporate credit strategies.
Realizations were driven by $13.5 billion from infrastructure and asset based credit strategies and $8.5 billion from private corporate credit strategies.
Outflows were driven by $9.8 billion from private corporate credit strategies and $6.6 billion from liquid corporate credit strategies.
Market depreciation was driven by $2.6 billion from liquid corporate credit strategies, partially offset by market appreciation of $1.5 billion from infrastructure and asset based credit strategies.
In our Multi-Asset Investing segment, an increase of $17.8 billion from $85.6 billion at December 31, 2025 to $103.4 billion at September 30, 2026. The net increase was due to inflows of $16.6 billion and market appreciation of $8.4 billion, offset by outflows of $5.1 billion and realizations of $2.1 billion.
Inflows were driven by $9.7 billion from Absolute Return, $3.4 billion from Total Portfolio Management and $3.2 billion from Multi-Strategy.
Market appreciation was driven by $4.3 billion from Absolute Return, $1.4 billion from Public Real Assets, $1.4 billion from Multi-Strategy and $1.2 billion from Total Portfolio Management.
Outflows were driven by $3.7 billion from Absolute Return.
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The following presents our Dry Powder as of quarter end of each period:
Totals may not add due to rounding.
95
The following table presents the Accrued Performance Revenues, net of Performance Compensation, of the Blackstone Funds as of September 30, 2026 and 2025. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 16. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues.
BREP Global
BREP Europe
BREP Asia
BPP
BREDS
Total Real Estate (a)
BCP Global
BCP Asia
Energy/Energy Transition
Core Private Equity
Tactical Opportunities
Secondaries
Infrastructure
Life Sciences
BTAS/BXPE
Total Private Equity (a)
Total Blackstone Net Accrued Performance Revenues
Real Estate and Private Equity include co-investments, as applicable.
For the twelve months ended September 30, 2026, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $4.4 billion, partially offset by net realized distributions of $3.6 billion.
96
The following presents our Invested Performance Eligible Assets Under Management as of quarter end for each period:
97
The following presents our Perpetual Capital Total Assets Under Management as of quarter end for each period:
Perpetual Capital Total Assets Under Management for the Multi-Asset Investing segment was $582.2 million, $724.3 million and $906.6 million as of December 31, 2025, June 30, 2026 and September 30, 2026, respectively.
Perpetual Capital Total Assets Under Management was $562.3 billion as of September 30, 2026, an increase of $6.7 billion, compared to $555.6 billion as of June 30, 2026. Perpetual Capital Total Assets Under Management in our Private Equity and Credit & Insurance segments increased $8.4 billion and decreased $2.0 billion, respectively.
Perpetual Capital Total Assets Under Management was $562.3 billion as of September 30, 2026, an increase of $38.6 billion, compared to $523.6 billion as of December 31, 2025. Perpetual Capital Total Assets Under Management in our Private Equity and Credit & Insurance segments increased $29.4 billion and $7.4 billion, respectively.
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Investment Records
Fund returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
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The following tables present the investment record of our significant and formerly significant carry/drawdown funds and select Perpetual Capital strategies from inception through September 30, 2026:
Carry/Drawdown Funds
Fund (Investment Period Beginning Date / Ending Date) (a)
Pre-BREP
BREP I (Sep 1994 / Oct 1996)
BREP II (Oct 1996 / Mar 1999)
BREP III (Apr 1999 / Apr 2003)
BREP IV (Apr 2003 / Dec 2005)
BREP V (Dec 2005 / Feb 2007)
BREP VI (Feb 2007 / Aug 2011)
BREP VII (Aug 2011 / Apr 2015)
BREP VIII (Apr 2015 / Jun 2019)
BREP IX (Jun 2019 / Aug 2022)
*BREP X (Aug 2022 / Feb 2028)
Total Global BREP
BREP Int’l (Jan 2001 / Sep 2005)
BREP Int’l II (Sep 2005 / Jun 2008) (e)
BREP Europe III (Jun 2008 / Sep 2013)
BREP Europe IV (Sep 2013 / Dec 2016)
BREP Europe V (Dec 2016 / Oct 2019)
BREP Europe VI (Oct 2019 / Sep 2023)
*BREP Europe VII (Sep 2023 / Mar 2029)
Total BREP Europe
continued...
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Carry/Drawdown Funds continued
Real Estate (continued)
BREP Asia I (Jun 2013 / Dec 2017)
BREP Asia II (Dec 2017 / Mar 2022)
*BREP Asia III (Mar 2022 / Sep 2027)
Total BREP Asia
BREP Co-Investment (f)
Total BREP
*BREDS High-Yield (Various) (g)
Corporate Private Equity
BCP I (Oct 1987 / Oct 1993)
BCP II (Oct 1993 / Aug 1997)
BCP III (Aug 1997 / Nov 2002)
BCOM (Jun 2000 / Jun 2006)
BCP IV (Nov 2002 / Dec 2005)
BCP V (Dec 2005 / Jan 2011)
BCP VI (Jan 2011 / May 2016)
BCP VII (May 2016 / Feb 2020)
BCP VIII (Feb 2020 / Apr 2024)
*BCP IX (Apr 2024 / Apr 2030)
Energy I (Aug 2011 / Feb 2015)
Energy II (Feb 2015 / Feb 2020)
Energy III (Feb 2020 / Jun 2024)
Energy Transition IV (Jun 2024 / Jun 2026)
*Energy Transition V (Jun 2026 / Jun 2032)
BCP Asia I (Dec 2017 / Sep 2021)
BCP Asia II (Sep 2021 / Sep 2026)
*BCP Asia III (Sep 2026 / Sep 2032)
Core Private Equity I (Jan 2017 / Mar 2021) (h)
*Core Private Equity II (Mar 2021 / Mar 2027) (h)
Total Corporate Private Equity
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Private Equity (continued)
*Tactical Opportunities (Various)
*Tactical Opportunities Co-Investment and Other (Various)
Total Tactical Opportunities
Growth
BXG I (Jul 2020 / Feb 2025)
*BXG II (Feb 2025 / Feb 2030)
Total Growth
Strategic Partners (Secondaries)
Strategic Partners I-V (Various) (i)
Strategic Partners VI (Apr 2014 / Apr 2016) (i)
Strategic Partners VII (May 2016 / Mar 2019) (i)
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)
*Strategic Partners Real Estate, SMA and Other (Various) (i)
Strategic Partners Infrastructure III (Jun 2020 / Jun 2024) (i)
Strategic Partners IX (Oct 2021 / Mar 2026) (i)
*Strategic Partners GP Solutions (Jun 2021 / Dec 2026) (i)
*Strategic Partners Infrastructure IV (Jul 2024 / Sep 2029) (i)
*Strategic Partners X (Mar 2026 / May 2031) (i)
Total Strategic Partners (Secondaries)
Clarus IV (Jan 2018 / Jan 2020)
BXLS V (Jan 2020 / Mar 2025)
*BXLS VI (Mar 2025 / Mar 2031)
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Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)
Mezzanine / Opportunistic IV (Jan 2021 / Aug 2025)
*Mezzanine / Opportunistic V (Aug 2025 / Aug 2029)
Total Mezzanine / Opportunistic
Stressed / Distressed I (Sep 2009 / May 2013)
Stressed / Distressed II (Jun 2013 / Jun 2018)
Stressed / Distressed III (Dec 2017 / Dec 2022)
Total Stressed / Distressed
European Senior Debt I (Feb 2015 / Feb 2019)
European Senior Debt II (Jun 2019 / Jun 2023) (j)
Total European Senior Debt
Energy I (Nov 2015 / Nov 2018)
Energy II (Feb 2019 / Jun 2023)
*Energy III (May 2023 / May 2028)
Total Energy
*Senior Direct Lending (Various) (k)
Total Credit Drawdown Funds (l)
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Select Perpetual Capital Strategies (m)
Strategy (Inception Date) (a)
BPP - Blackstone Property Partners Platform (Dec 2013) (p)
BREIT - Blackstone Real Estate Income Trust (Jan 2017)
BREIT - Class I
BXMT - Blackstone Mortgage Trust (May 2013) (q)
BXGP - Blackstone GP Stakes (Feb 2014) (r)
BIP - Blackstone Infrastructure Partners (Mar 2019) (s)
BXINFRA - Blackstone Infrastructure Strategies Fund Program (Jan 2025)
BXINFRA - Class I
BXPE - Blackstone Private Equity Strategies Fund Program (Jan 2024)
BXPE - Class I
BXSL - Blackstone Secured Lending Fund (Nov 2018) (t)
BCRED - Blackstone Private Credit Fund (Jan 2021) (u)
BCRED - Class I
ECRED - Blackstone European Credit Fund (Oct 2022) (u)
ECRED - Class I
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.
Not meaningful generally due to the limited time since initial investment.
Not applicable.
Separately managed account.
For the carry/drawdown funds only, represents funds that are in their investment period as of September 30, 2026.
Excludes investment vehicles where Blackstone does not earn fees.
Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and expired or recallable capital and may include leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.
Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Performance Revenues, divided by invested capital.
Unless otherwise indicated, Net Internal Rate of Return (“IRR”) represents the annualized inception to September 30, 2026 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of limited partner cash flows. Initial inception date of cash flows may differ from the Investment Period Beginning Date.
The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II performance reflects a 7% Realized Net IRR and a 7% Total Net IRR.
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 Performance Revenues.
BREDS High-Yield represents the flagship real estate debt drawdown funds only.
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Blackstone Core Equity Partners is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity.
Strategic Partners’ Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total MOIC and Total Net IRRs are reported on a three-month lag and therefore do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns of capital until fully recovered and therefore Unrealized and Realized MOICs and Realized Net IRRs are not applicable. Committed Capital and Available Capital are presented as of the current quarter.
European Senior Debt II IRR represents the blended return across the commingled levered and unlevered funds within the strategy. Total net returns were 12% and 7%, respectively, for the levered and unlevered funds of the strategy.
Senior Direct Lending IRR represents the blended return across the commingled levered and unlevered funds within the strategy. Total net returns were 9% and 7%, respectively, for the levered and unlevered funds of the strategy.
Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented.
Represents the performance for select Perpetual Capital strategies; strategies excluded consist primarily of (1) investment strategies that have been investing for less than one year, (2) Perpetual Capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does not earn fees.
For the purposes of segment Assets Under Management reporting, Assets Under Management are reported in the business managing such assets.
Unless otherwise indicated, Total Net Return represents the annualized per share blended return from inception date to September 30, 2026, assuming the applicable fund or fund program had a single share class and a single vehicle, as applicable, reinvestment of dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by the applicable fund or fund program. Returns are not representative of the return experienced by any particular vehicle, investor or share class. Functional currency equivalent returns are included when calculating the blended return for funds or fund programs that have share classes that are denominated in a currency other than a fund’s or fund program’s functional currency and that are not hedged. The return methodology of the separate individual share classes presented matches that of the respective fund or fund program and represents the Total Net Return of a respective fund’s or fund program’s largest share class which may differ from that of other vehicles or share classes.
BPP represents the aggregate Total Assets Under Management and Total Net Return of the BPP Platform, which comprises over 30 fund, co-investment and separately managed account vehicles. It includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of September 30, 2026, these vehicles represented $4.5 billion of Total Assets Under Management. Total Net Return represents the annualized IRR on total invested capital from the inception date to September 30, 2026 based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues (but before taxes or withholdings incurred by the limited partners directly or indirectly), and adds back the effect of any tax distributions paid for carried interest already reflected in returns. IRRs are calculated using actual timing of investor cash flows and the initial date of certain cash flows may differ from the inception date.
The BXMT Total Net Return reflects annualized market return of a shareholder invested in BXMT since its inception date, assuming reinvestment of all dividends received during the period.
Blackstone GP Stakes (“BXGP”) represents the aggregate Total Assets Under Management and Total Net Return of BSCH I and BSCH II funds that invest as part of the Secondaries - GP Stakes strategy, which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally. As of September 30, 2026, including vehicles that are not classified as Perpetual Capital and co-investment vehicles that do not pay fees, BXGP Total Assets Under Management was $13.2 billion. Total Net Return represents the annualized IRR on total invested capital from the inception date to September 30, 2026 based on realized proceeds and unrealized value, as
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BIP represents the aggregate Total Assets Under Management and Total Net Return of infrastructure-focused funds and co-investment vehicles for institutional investors with a primary focus on the U.S. and Europe. As of September 30, 2026, including co-investment vehicles that do not pay fees, BIP Total Assets Under Management was $91.9 billion. Total Net Return represents the annualized IRR on total invested capital from the inception date to September 30, 2026 based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues (but before taxes or withholdings incurred by the limited partners directly or indirectly), and adds back the effect of any tax distributions paid for carried interest already reflected in returns. IRRs are calculated using actual timing of investor cash flows and the initial date of certain cash flows may differ from the inception date.
The BXSL Total Assets Under Management and Total Net Return are presented as of June 30, 2026. Refer to BXSL public filings for current quarter results. BXSL Total Net Return reflects the annualized change in Net Asset Value (“NAV”) per share from the inception date to June 30, 2026, plus distributions per share (assuming dividends and distributions are reinvested in accordance with BXSL’s dividend reinvestment plan) divided by the beginning NAV per share.
For BCRED and ECRED, Total Assets Under Management reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED’s and ECRED’s net asset values as of September 30, 2026 were $41.1 billion and €2.6 billion, respectively.
Segment Analysis
Discussed below is our Segment Distributable Earnings for each of our segments. This information is reflected in the manner utilized by our senior management to make operating decisions, assess performance and allocate resources. References to “our” sectors or investments may also refer to portfolio companies and investments of the underlying funds that we manage.
106
The following table presents the results of operations for our Real Estate segment:
Base Management Fees
Transaction, Advisory and Other Fees, Net
Management Fee Offsets
Total Management and Advisory Fees, Net
Fee Related Performance Revenues
Fee Related Compensation
Other Operating Expenses
Realized Performance Revenues
Realized Performance Compensation
Realized Principal Investment Income
Net Realizations
Not meaningful.
Segment Distributable Earnings were $553.7 million for the three months ended September 30, 2026, a decrease of $64.7 million, compared to $618.3 million for the three months ended September 30, 2025. The decrease in Segment Distributable Earnings was attributable to decreases of $50.6 million in Fee Related Earnings and $14.1 million in Net Realizations.
Overall values in our Real Estate segment decreased modestly in the third quarter of 2026, primarily due to increased capitalization rates across our real estate holdings. Although sectors with lower growth, such as multifamily, were disproportionately impacted by the volatile interest rate environment, the resulting declines in value were partially offset by momentum in digital infrastructure investments and gains from interest rate hedges. Differing exposure to these factors led to modest appreciation in Core+ and depreciation in BREP. The pace of the recovery in commercial real estate has continued to be impacted by higher base rates, and continued volatility could further pressure the values of certain holdings and are likely to continue to negatively impact transaction activity, including realizations. Nonetheless, we believe that strengthening fundamentals in sectors representing a substantial portion of our overall real estate equity portfolio, including accelerating demand in digital infrastructure, a meaningful re-acceleration of U.S. leasing activity in logistics, and declining new supply, should provide support to values in our Real Estate portfolio over time.
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Fee Related Earnings were $499.2 million for the three months ended September 30, 2026, a decrease of $50.6 million, compared to $549.8 million for the three months ended September 30, 2025. The decrease in Fee Related Earnings was primarily attributable to a decrease of $60.0 million in Management and Advisory Fees, Net and an increase of $27.7 million in Fee Related Compensation, partially offset by an increase of $35.9 million in Fee Related Performance Revenues.
Management and Advisory Fees, Net were $628.8 million for the three months ended September 30, 2026, a decrease of $60.0 million, compared to $688.8 million for the three months ended September 30, 2025, primarily attributable to a decrease in Base Management Fees. Base Management Fees decreased $62.7 million primarily attributable to decreases in BREP and Core+, which included lower management fees in BPP, partially offset by an increase in BREIT.
Fee Related Compensation was $196.0 million for the three months ended September 30, 2026, an increase of $27.7 million, compared to $168.4 million for the three months ended September 30, 2025. The increase was primarily attributable to the increase in Fee Related Performance Revenues, on which a portion of Fee Related Compensation is based.
Fee Related Performance Revenues were $160.6 million for the three months ended September 30, 2026, an increase of $35.9 million, compared to $124.6 million for the three months ended September 30, 2025. The increase was primarily attributable to higher Fee Related Performance Revenues in BREIT.
Net Realizations were $54.4 million for the three months ended September 30, 2026, a decrease of $14.1 million, compared to $68.5 million for the three months ended September 30, 2025. The decrease in Net Realizations was primarily attributable to a decrease of $32.9 million in Realized Performance Revenues, partially offset by a decrease of $20.1 million in Realized Performance Compensation.
Realized Performance Revenues were $99.9 million for the three months ended September 30, 2026, a decrease of $32.9 million, compared to $132.8 million for the three months ended September 30, 2025. The decrease was primarily attributable to lower Realized Performance Revenues in BREP.
Realized Performance Compensation was $49.5 million for the three months ended September 30, 2026, a decrease of $20.1 million, compared to $69.6 million for the three months ended September 30, 2025. The decrease was primarily attributable to the decrease in Realized Performance Revenues.
Segment Distributable Earnings were $1.9 billion for the nine months ended September 30, 2026, an increase of $176.8 million, compared to $1.7 billion for the nine months ended September 30, 2025. The increase in Segment Distributable Earnings was attributable to an increase of $95.7 million in Net Realizations and an increase of $81.1 million in Fee Related Earnings.
Fee Related Earnings were $1.7 billion for the nine months ended September 30, 2026, an increase of $81.1 million, compared to $1.6 billion for the nine months ended September 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $304.2 million in Fee Related Performance Revenues, partially offset by an increase of $142.2 million in Fee Related Compensation and a decrease of $67.6 million in Management and Advisory Fees, Net.
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Fee Related Performance Revenues were $556.3 million for the nine months ended September 30, 2026, an increase of $304.2 million, compared to $252.0 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher Fee Related Performance Revenues in BREIT.
Fee Related Compensation was $651.4 million for the nine months ended September 30, 2026, an increase of $142.2 million, compared to $509.1 million for the nine months ended September 30, 2025. The increase was primarily attributable to the increase in Fee Related Performance Revenues, on which a portion of Fee Related Compensation is based.
Management and Advisory Fees, Net were $2.0 billion for the nine months ended September 30, 2026, a decrease of $67.6 million, compared to $2.1 billion for the nine months ended September 30, 2025, primarily attributable to a decrease in Base Management Fees, partially offset by an increase in Transaction, Advisory and Other Fees, Net. Base Management Fees decreased $134.3 million primarily attributable to decreases in BREP and Core+, which included lower management fees in BPP, partially offset by an increase in BREIT. Transaction, Advisory and Other Fees, Net increased $84.1 million primarily attributable to an increase in certain direct transaction fees and acquisition advisory fees paid to the advisor of our BREP funds.
Net Realizations were $197.0 million for the nine months ended September 30, 2026, an increase of $95.7 million, compared to $101.3 million for the nine months ended September 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $157.5 million in Realized Performance Revenues, partially offset by an increase of $55.2 million in Realized Performance Compensation.
Realized Performance Revenues were $352.9 million for the nine months ended September 30, 2026, an increase of $157.5 million, compared to $195.4 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher Realized Performance Revenues in BREP.
Realized Performance Compensation was $157.7 million for the nine months ended September 30, 2026, an increase of $55.2 million, compared to $102.5 million for the nine months ended September 30, 2025. The increase was primarily attributable to the increase in Realized Performance Revenues.
Fund Returns
Fund return information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
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The following table presents the internal rates of return, except where noted, of our significant real estate funds:
Fund (a)
BREP VIII
BREP IX
BREP X
BREP Europe V (b)
BREP Europe VI (b)
BREP Europe VII (b)
BREP Asia II
BREP Asia III
BREP Co-Investment (c)
BPP (d)
BREIT (e)
BREIT - Class I (e)
BREDS High-Yield (f)
BXMT (g)
Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. Excludes investment vehicles where Blackstone does not earn fees.
Reflects an internal rate of return for euro-denominated investors in these funds.
The BPP platform, which comprises over 30 fund, co-investment and separately managed account vehicles, represents the Core+ real estate funds that invest with a more modest risk profile and lower leverage.
Represents the annualized per share blended return since BREIT’s January 1, 2017 inception, assuming BREIT had a single share class, reinvestment of dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are not representative of the returns experienced by any particular investor or share class. Class I shares represent BREIT’s largest share class, and their Total Net Return is calculated using the same methodology.
BREDS High-Yield represents the flagship real estate debt drawdown funds only. Inception to date returns are from July 1, 2009.
The BXMT Total Net Return reflects the annualized market return of a shareholder invested in BXMT since its May 2013 inception, assuming reinvestment of all dividends received during the period.
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Funds With Closed Investment Periods as of September 30, 2026
The Real Estate segment has thirteen funds with closed investment periods as of September 30, 2026: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of September 30, 2026, BREP VII, BREP VI, BREP V, BREP Europe IV, BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all remaining investments were valued at zero. BREP VIII, BREDS IV and BREDS III were above their carried interest thresholds as of September 30, 2026, while BREP IX, BREP Asia II, BREP Europe VI, and BREP Europe V were below their carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.
The following table presents the results of operations for our Private Equity segment:
Segment Distributable Earnings were $813.1 million for the three months ended September 30, 2026, a decrease of $58.4 million, compared to $871.5 million for the three months ended September 30, 2025. The decrease in Segment Distributable Earnings was attributable to a decrease of $186.0 million in Net Realizations, partially offset by an increase of $127.6 million in Fee Related Earnings.
Our Private Equity segment generated healthy performance across nearly all strategies in the third quarter of 2026, led by continued momentum in digital infrastructure investments and the energy portfolio. This was, however, partly offset by publicly traded holdings amid significant volatility in the equity markets. Fundraising in our drawdown and perpetual vehicles was strong across multiple strategies, underpinned by broad-based demand from institutional clients and in the private wealth channel.
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In Corporate Private Equity, our operating companies exhibited continued solid revenue growth and expanding margins in the third quarter of 2026, despite the challenging environment. Although strong underlying demand especially in sectors benefitting from heavy artificial intelligence spending is leading to robust growth in many areas, elevated base rates and geopolitical turbulence are likely to continue to contribute to equity market volatility and negatively impact investor sentiment. Although we have a strong pipeline of expected realizations for the fourth quarter of 2026, these factors could impact transaction activity for some time. Nevertheless, we have opportunistically continued to take advantage of exit opportunities including through the initial public offerings market. This should provide the foundation for greater realizations over time, particularly with improvement in geopolitical conditions.
We continue to monitor the potential for artificial intelligence-driven disruption on the valuations of companies in certain sectors, such as software. We believe the ultimate impact of such disruption will vary significantly across companies based on multiple factors, with a number of companies well-positioned to be protected or benefit from such disruption.
Fee Related Earnings were $618.9 million for the three months ended September 30, 2026, an increase of $127.6 million, compared to $491.4 million for the three months ended September 30, 2025. The increase in Fee Related Earnings was primarily attributable to increases of $120.7 million in Management and Advisory Fees, Net and $88.5 million in Fee Related Performance Revenues, partially offset by an increase of $63.3 million in Fee Related Compensation.
Management and Advisory Fees, Net were $838.1 million for the three months ended September 30, 2026, an increase of $120.7 million, compared to $717.4 million for the three months ended September 30, 2025, primarily attributable to increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $80.3 million, primarily attributable to increased Fee-Earning Assets Under Management in BXPE, BIP and BXINFRA. Transaction, Advisory and Other Fees, Net increased $41.6 million primarily attributable to increased transaction activity in BXCM.
Fee Related Performance Revenues were $215.2 million for the three months ended September 30, 2026, an increase of $88.5 million, compared to $126.7 million for the three months ended September 30, 2025. The increase was primarily attributable to crystallization of Performance Revenues in Infrastructure.
Fee Related Compensation was $295.2 million for the three months ended September 30, 2026, an increase of $63.3 million, compared to $231.9 million for the three months ended September 30, 2025. The increase was primarily attributable to increases in Fee Related Performance Revenues and Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations were $194.1 million for the three months ended September 30, 2026, a decrease of $186.0 million, compared to $380.1 million for the three months ended September 30, 2025. The decrease in Net Realizations was primarily attributable to a decrease in Realized Performance Revenues of $273.9 million, partially offset by a decrease in Realized Performance Compensation of $103.6 million.
Realized Performance Revenues were $285.5 million for the three months ended September 30, 2026, a decrease of $273.9 million, compared to $559.4 million for the three months ended September 30, 2025. The decrease was primarily attributable to the sale of an interest in the GP Stakes portfolio in the third quarter of 2025.
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Realized Performance Compensation was $102.4 million for the three months ended September 30, 2026, a decrease of $103.6 million, compared to $206.0 million for the three months ended September 30, 2025. The decrease was primarily attributable to the decrease in Realized Performance Revenues.
Segment Distributable Earnings were $2.8 billion for the nine months ended September 30, 2026, an increase of $592.8 million, compared to $2.2 billion for the nine months ended September 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $545.5 million in Fee Related Earnings and $47.3 million in Net Realizations.
Fee Related Earnings were $1.9 billion for the nine months ended September 30, 2026, an increase of $545.5 million, compared to $1.4 billion for the nine months ended September 30, 2025. The increase in Fee Related Earnings was primarily attributable to increases of $397.4 million in Fee Related Performance Revenues and $389.1 million in Management and Advisory Fees, Net, partially offset by an increase of $193.4 million in Fee Related Compensation.
Fee Related Performance Revenues were $777.3 million for the nine months ended September 30, 2026, an increase of $397.4 million compared to $379.9 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher Performance Revenues in BXPE and crystallization of Performance Revenues in BXINFRA.
Management and Advisory Fees, Net were $2.4 billion for the nine months ended September 30, 2026, an increase of $389.1 million compared to $2.0 billion for the nine months ended September 30, 2025, primarily attributable to increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $238.3 million primarily attributable to increased Fee-Earning Assets Under Management in Infrastructure and BXPE. Transaction, Advisory and Other Fees, Net increased $154.2 million, primarily attributable to increased transaction activity in BXCM.
Fee Related Compensation was $895.5 million for the nine months ended September 30, 2026, an increase of $193.4 million, compared to $702.2 million for the nine months ended September 30, 2025. The increase was primarily attributable to increases in Fee Related Performance Revenues and Management and Advisory Fees, Net, both of which impact Fee Related Compensation.
Net Realizations were $847.5 million for the nine months ended September 30, 2026, an increase of $47.3 million, compared to $800.2 million for the nine months ended September 30, 2025. The increase in Net Realizations was primarily attributable to increases of $95.9 million in Realized Performance Revenues and $25.6 million in Realized Principal Investment Income, partially offset by an increase of $74.2 million in Realized Performance Compensation.
Realized Performance Revenues were $1.4 billion for the nine months ended September 30, 2026, an increase of $95.9 million, compared to $1.3 billion for the nine months ended September 30, 2025. The increase was primarily attributable to increases in Realized Performance Revenues in Corporate Private Equity, partially offset due to the sale of an interest in the GP Stakes portfolio in the third quarter of 2025.
Realized Principal Investment Income was $81.4 million for the nine months ended September 30, 2026, an increase of $25.6 million, compared to $55.7 million for the nine months ended September 30, 2025. The increase was primarily attributable to higher realizations in Corporate Private Equity.
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Realized Performance Compensation was $648.1 million for the nine months ended September 30, 2026, an increase of $74.2 million, compared to $573.9 million for the nine months ended September 30, 2025. The increase was primarily attributable to the increase in Realized Performance Revenues.
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The following table presents the internal rates of return of our significant private equity funds:
BCP VI
BCP VII
BCP VIII
BCP IX
BCP Asia I
BCP Asia II
BEP II
BEP III
BETP IV
BCEP I
BCEP II
Tactical Opportunities Co-Investment and Other
Clarus IV
BXLS V
BXG I
BXPE (b)
BXPE - Class I (c)
BIP (c)
BXINFRA (b)
BXINFRA - Class I (b)
Strategic Partners VII (d)
Strategic Partners VIII (d)
Strategic Partners IX (d)
Strategic Partners Real Assets II (d)
Strategic Partners Infrastructure III (d)
Strategic Partners Real Estate, SMA and Other (d)
Strategic Partners GP Solutions (d)
BXGP (e)
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Total Net Return represents the annualized per share blended return from a fund program’s inception date to September 30, 2026, assuming the applicable fund program had a single vehicle, reinvestment of dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by the applicable fund program. Fund program returns are not representative of the return experienced by any particular vehicle, investor or share class. Functional currency equivalent returns are included when calculating the blended return for funds or fund programs that have share classes that are denominated in a currency other than a fund’s or fund program’s functional currency and that are not hedged. The return methodology of the separate individual share classes presented matches that of the respective fund program and represents the Total Net Return of a respective fund program’s largest share class, with performance varying by vehicle and/or share class across a fund program. The inception date for BXPE and BXINFRA, and their respective Class I returns, is January 2024 and January 2025, respectively.
Gross and net returns reflect infrastructure-focused funds for institutional investors.
Gross and net returns are reported on a three-month lag, reflect Strategic Partners’ fund financial performance as of the prior quarter and therefore do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns of capital until fully recovered and therefore inception to date realized returns are not applicable.
Blackstone GP Stakes (“BXGP”) gross and net returns represent BSCH I and II funds that invest as part of the Secondaries GP Stakes strategy. Returns include performance of investments in four public-market general partner stakes acquired in BSCH I, prior to a shift in BXGP’s strategy in 2017 to focus exclusively on private-markets general partners.
Corporate Private Equity has twelve funds with closed investment periods: BCP IV, BCP V, BCP VI, BCP VII, BCP VIII, BEP I, BEP II, BEP III, BETP IV, BCEP I, BCP Asia I and BCP Asia II. BCP V is comprised of two fund classes, the BCP V “main fund” and BCP V-AC fund. Within these fund classes, the general partner is subject to equalization such that (a) the general partner accrues carried interest when the respective carried interest for either fund class is positive and (b) the general partner realizes carried interest so long as clawback obligations, if any, for either of the respective fund classes are fully satisfied. Each of the above-mentioned funds were above their respective carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.
Tactical Opportunities has various funds with closed investment periods, which are each above their carried interest thresholds based on aggregate fund position. Blackstone Growth has one fund with a closed investment period, BXG I, which is not above its carried interest threshold. Secondaries has various funds with closed investment periods, including but not limited to: Strategic Partners Infrastructure III, Strategic Partners IX, Strategic Partners Real Estate VII and BSCH I which are above their respective carried interest thresholds based on aggregate fund position. Blackstone Life Sciences has funds with a closed investment period: Clarus IV, BXLS V and BXLS Yield, which are each above their carried interest thresholds.
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The following table presents the results of operations for our Credit & Insurance segment:
Segment Distributable Earnings were $433.0 million for the three months ended September 30, 2026, an increase of $16.8 million, compared to $416.2 million for the three months ended September 30, 2025. The increase in Segment Distributable Earnings was attributable to an increase of $21.0 million in Net Realizations, partially offset by a decrease of $4.2 million in Fee Related Earnings.
Our Credit & Insurance segment demonstrated stability amid a volatile market environment in the third quarter of 2026. Our non-investment grade private credit strategies generated healthy returns, reflecting stable underlying credit performance across the majority of our holdings and steady interest income, partly offset by markdowns in select underperforming credits. In the third quarter of 2026, our investment grade private credit platform grew substantially year-over-year. This growth is underpinned by continued strong engagement with our insurance clients and long-term structural shifts in investment grade private credit resulting from compelling capital deployment opportunities in the buildout of digital, energy and transportation infrastructure. There is also increasing demand by companies for bespoke private market capital solutions. We believe future opportunities for engagement with pensions, sovereign wealth funds and other institutional investors should also support momentum in our investment grade private credit strategies.
In our perpetual private wealth strategies, redemption requests in BCRED remain elevated primarily due to requests carried over from the prior quarter. Concurrently, subscriptions to BCRED, albeit solid, declined from the prior quarter, resulting in net outflows in the third quarter of 2026. Net flows are likely to continue to be negatively impacted in light of the current market environment and the lingering effects from press and market attention around private credit.
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While defaults in direct lending have risen and we expect will continue to rise from a historically low level, our Credit & Insurance segment funds’ holdings are predominantly in senior secured credit with significant equity subordination from institutional borrowers. We believe this should position our Credit & Insurance segment well. We continue to monitor the potential for artificial intelligence-driven disruption on the valuations of companies in certain sectors, such as software. We believe the ultimate impact of such disruption will vary significantly across companies based on multiple factors, with a number of companies well-positioned to be protected or benefit from such disruption.
Fee Related Earnings were $363.1 million for the three months ended September 30, 2026, a decrease of $4.2 million, compared to $367.3 million for the three months ended September 30, 2025. The decrease in Fee Related Earnings was primarily attributable to a decrease of $37.3 million in Fee Related Performance Revenues, partially offset by an increase of $27.2 million in Management and Advisory Fees, Net.
Fee Related Performance Revenues were $164.4 million for the three months ended September 30, 2026, a decrease of $37.3 million, compared to $201.7 million for the three months ended September 30, 2025. The decrease was primarily attributable to lower Fee Related Performance Revenues in BCRED and BXSL.
Management and Advisory Fees, Net were $524.4 million for the three months ended September 30, 2026, an increase of $27.2 million, compared to $497.2 million for the three months ended September 30, 2025, primarily attributable to an increase in Base Management Fees. Base Management Fees increased $24.2 million, primarily attributable to an increase in Fee-Earning Assets Under Management in infrastructure and asset based credit strategies.
Net Realizations were $69.9 million for the three months ended September 30, 2026, an increase of $21.0 million, compared to $48.9 million for the three months ended September 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $18.3 million in Realized Performance Revenues.
Realized Performance Revenues were $58.5 million for the three months ended September 30, 2026, an increase of $18.3 million, compared to $40.1 million for the three months ended September 30, 2025. The increase was primarily attributable to higher realized Performance Revenues in infrastructure and asset based credit strategies.
Segment Distributable Earnings were $1.2 billion for the nine months ended September 30, 2026, a decrease of $136.1 million, compared to $1.3 billion for the nine months ended September 30, 2025. The decrease in Segment Distributable Earnings was attributable to a decrease of $156.4 million in Net Realizations, partially offset by an increase of $20.3 million in Fee Related Earnings.
Fee Related Earnings were $1.1 billion for the nine months ended September 30, 2026, an increase of $20.3 million, compared to $1.0 billion for the nine months ended September 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $190.8 million in Management and Advisory Fees, Net, partially offset by a decrease of $99.0 million in Fee Related Performance Revenues and an increase of $42.4 million in Other Operating Expenses.
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Management and Advisory Fees, Net were $1.6 billion for the nine months ended September 30, 2026, an increase of $190.8 million, compared to $1.4 billion for the nine months ended September 30, 2025, primarily attributable to increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $116.8 million, primarily attributable to an increase in Fee-Earning Assets Under Management in private corporate credit strategies. Transaction, Advisory and Other Fees, Net increased $76.0 million, primarily attributable to capital markets advisory revenues in infrastructure and asset based credit strategies.
Fee Related Performance Revenues were $488.1 million for the nine months ended September 30, 2026, a decrease of $99.0 million, compared to $587.1 million for the nine months ended September 30, 2025. The decrease was primarily attributable to lower Fee Related Performance Revenues in BXSL.
Other Operating Expenses were $359.3 million for the nine months ended September 30, 2026, an increase of $42.4 million, compared to $316.8 million for the nine months ended September 30, 2025. The increase was primarily attributable to occupancy-related and technology costs.
Net Realizations were $114.3 million for the nine months ended September 30, 2026, a decrease of $156.4 million, compared to $270.6 million for the nine months ended September 30, 2025. The decrease in Net Realizations was attributable to decreases of $117.2 million in Realized Principal Investment Income and $71.0 million in Realized Performance Revenues, partially offset by a decrease of $31.8 million in Realized Performance Compensation.
Realized Principal Investment Income was $26.3 million for the nine months ended September 30, 2026, a decrease of $117.2 million, compared to $143.6 million for the nine months ended September 30, 2025. The decrease was primarily attributable to the sale of Bistro, Blackstone’s internally developed portfolio visualization software platform, in the first quarter of 2025.
Realized Performance Revenues were $148.1 million for the nine months ended September 30, 2026, a decrease of $71.0 million, compared to $219.1 million for the nine months ended September 30, 2025. The decrease was primarily attributable to lower Realized Performance Revenues in our private corporate credit funds.
Realized Performance Compensation was $60.2 million for the nine months ended September 30, 2026, a decrease of $31.8 million, compared to $92.1 million for the nine months ended September 30, 2025. The decrease was primarily attributable to a decrease in Realized Performance Revenues.
Composite Returns
Composite returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The composite returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future results of any particular fund or composite. An investment in Blackstone is not an investment in any of our funds or composites. There can be no assurance that any of our funds or composites or our other existing and future funds or composites will achieve similar returns.
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The following table presents the return information for the Private Credit and Liquid Credit Composites:
Composite (a)
Private Credit Composite (b)
Liquid Credit Composite (b)
Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Allocations, net of tax advances.
Private Credit Composite returns include the Flagship commingled funds across the opportunistic lending, global middle market direct lending funds (including BXSL, BCRED, and ECRED strategies), stressed/distressed strategies, and non-investment grade infrastructure and asset based credit strategies. Separately managed accounts, funds with a limited number of limited partners that are not broadly marketed, inactive investment strategies, unlevered funds within a strategy that has designated levered and unlevered sleeves, and Multi-Asset Credit strategies are excluded. Liquid Credit Composite returns include CLOs, closed-ended funds, open-ended funds and separately managed accounts. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter-end are included. Funds in liquidation and funds investing primarily in investment grade corporate credit or asset based finance are excluded. Blackstone Funds that were contributed to BXCI as part of Blackstone’s acquisition of GSO in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by BXCI subsequent to March 2008, are also excluded.
The following table presents information regarding our Invested Performance Eligible Assets Under Management:
Credit & Insurance (b)
Estimated % Above High Water Mark/Hurdle represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Credit & Insurance managed fund has positive investment performance relative to a hurdle, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a hurdle return, thereby resulting in an increase in Estimated % Above High Water Mark/Hurdle.
For the Credit & Insurance managed funds, at September 30, 2026, the incremental appreciation needed for the 2% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles to reach their respective High Water Marks/Hurdles was $2.6 billion, an increase of $121.6 million, compared to $2.4 billion at September 30, 2025. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles as of September 30, 2026, 37% were within 5% of reaching their respective High Water Mark.
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The following table presents the results of operations for our Multi-Asset Investing segment:
Segment Distributable Earnings were $103.9 million for the three months ended September 30, 2026, an increase of $24.3 million, compared to $79.5 million for the three months ended September 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $18.7 million in Fee Related Earnings and $5.7 million in Net Realizations.
Most strategies in our Multi-Asset Investing segment generated positive performance in the third quarter of 2026. In particular, the Absolute Return Composite had its twenty-sixth consecutive quarter of positive performance, driven primarily by our quant and credit strategies. Continued strong performance in the segment has and is contributing to favorable fundraising dynamics, including its best single quarter of organic fundraising with $8.6 billion of inflows.
Fee Related Earnings were $90.8 million for the three months ended September 30, 2026, an increase of $18.7 million, compared to $72.1 million for the three months ended September 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $29.7 million in Management and Advisory Fees, Net, partially offset by an increase of $9.1 million in Fee Related Compensation.
Management and Advisory Fees, Net were $168.2 million for the three months ended September 30, 2026, an increase of $29.7 million, compared to $138.5 million for the three months ended September 30, 2025. The increase was primarily attributable to an increase in Base Management Fees. Base Management Fees increased $30.5 million, primarily attributable to an increase in Fee-Earning Assets Under Management in Absolute Return.
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Fee Related Compensation was $48.4 million for the three months ended September 30, 2026, an increase of $9.1 million, compared to $39.4 million for the three months ended September 30, 2025. The increase was primarily attributable to an increase in Management Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations were $13.1 million for the three months ended September 30, 2026, an increase of $5.7 million, compared to $7.4 million for the three months ended September 30, 2025. The increase was primarily attributable to an increase of $7.8 million in Realized Performance Revenues, partially offset by an increase of $2.4 million in Realized Performance Compensation.
Segment Distributable Earnings were $281.8 million for the nine months ended September 30, 2026, an increase of $74.2 million, compared to $207.5 million for the nine months ended September 30, 2025. The increase in Segment Distributable Earnings was attributable to increases of $54.4 million in Fee Related Earnings and $19.8 million in Net Realizations.
Fee Related Earnings were $246.3 million for the nine months ended September 30, 2026, an increase of $54.4 million, compared to $191.9 million for the nine months ended September 30, 2025. The increase in Fee Related Earnings was primarily attributable to an increase of $76.4 million in Management and Advisory Fees, Net, partially offset by an increase of $14.6 million in Fee Related Compensation.
Management and Advisory Fees, Net were $469.0 million for the nine months ended September 30, 2026, an increase of $76.4 million, compared to $392.6 million for the nine months ended September 30, 2025, primarily attributable to an increase in Base Management Fees. Base Management Fees increased $81.2 million, primarily attributable to an increase in Fee-Earning Assets Under Management in Absolute Return.
Fee Related Compensation was $138.3 million for the nine months ended September 30, 2026, an increase of $14.6 million, compared to $123.8 million for the nine months ended September 30, 2025. The increase was primarily attributable to an increase in Management and Advisory Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations were $35.4 million for the nine months ended September 30, 2026, an increase of $19.8 million, compared to $15.6 million for the nine months ended September 30, 2025. The increase in Net Realizations was primarily attributable to an increase of $35.3 million in Realized Performance Revenues, partially offset by an increase of $15.9 million in Realized Performance Compensation.
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The following table presents the return information of the Absolute Return Composite:
Composite
Absolute Return Composite (b)
Composite returns present a summarized asset-weighted return measure to evaluate the overall performance of the applicable class of Blackstone Funds.
Absolute Return Composite covers the period from January 2000 to present, although BXMA’s inception date is September 1990. The Absolute Return Composite includes only BXMA-managed commingled and customized multi-manager funds and accounts and does not include BXMA’s liquid solutions, seeding, Multi-Strategy, Total Portfolio Management and Public Real Assets (non-discretionary) platforms, except for investments by Absolute Return funds directly into those platforms. BXMA-managed funds in liquidation and, in the case of net returns, non-fee-paying assets are also excluded. The funds/accounts that comprise the Absolute Return Composite are not managed within a single fund or account and are managed with different mandates. There is no guarantee that BXMA would have made the same mix of investments in a stand-alone fund/account. The Absolute Return Composite is not an investible product and, as such, the performance of the Absolute Return Composite does not represent the performance of an actual fund or account. The historical return is from January 1, 2000.
Multi-Asset Investing Managed Funds (b)
Estimated % Above High Water Mark/Benchmark represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Multi-Asset Investing managed fund has positive investment performance relative to a benchmark, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a benchmark return, thereby resulting in an increase in Estimated % Above High Water Mark/Benchmark.
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For the Multi-Asset Investing managed funds, at September 30, 2026, the incremental appreciation needed for the 8% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks to reach their respective High Water Marks/Benchmarks was $154.9 million, an increase of $45.1 million, compared to $109.8 million at September 30, 2025. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks as of September 30, 2026, 94% were within 5% of reaching their respective High Water Mark.
Non-GAAP Financial Measures
These non-GAAP financial measures are presented without the consolidation of any Blackstone funds that are consolidated into the condensed consolidated financial statements. Consequently, all non-GAAP financial measures exclude the assets, liabilities and operating results related to the Blackstone Funds. See “—Key Financial Measures and Indicators” for our definitions of Distributable Earnings, Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA.
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The following table is a reconciliation of Net Income Attributable to Blackstone Inc. to Distributable Earnings, Total Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA:
Net Income Before Provision for Taxes
Transaction-Related and Non-Recurring Items (a)
Amortization of Intangibles (b)
Impact of Consolidation (c)
Unrealized Performance Revenues (d)
Unrealized Performance Allocations Compensation (e)
Unrealized Principal Investment (Income) Loss (f)
Other Revenues (g)
Equity-Based Compensation (h)
Administrative Fee Adjustment (i)
Taxes and Related Payables (j)
Net Interest and Dividend Loss (k)
Total Segment Distributable Earnings
Realized Performance Revenues (l)
Realized Performance Compensation (m)
Realized Principal Investment Income (n)
Adjusted EBITDA Reconciliation
Interest Expense (o)
Depreciation and Amortization (p)
Adjusted EBITDA
This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains, losses, or other charges, if any. 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, gains or losses associated with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of Blackstone’s operational performance.
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This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation.
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 and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
This adjustment removes Unrealized Performance Revenues on a segment basis. The Segment Adjustment represents the add back of Performance Revenues earned from consolidated Blackstone funds which have been eliminated in consolidation.
GAAP Unrealized Performance Allocations
Segment Adjustment
Unrealized Performance Revenues
This adjustment removes Unrealized Performance Allocations Compensation.
This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment 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.
GAAP Unrealized Principal Investment Income (Loss)
Unrealized Principal Investment Income (Loss)
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This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents the removal of certain Transaction-Related and Non-Recurring Items.
GAAP Other Revenue
Other Revenues
This adjustment removes Equity-Based Compensation on a segment basis.
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.
Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and adjusted for impacts of divestitures and tax contingencies. For interim periods, taxes are calculated using the preferred annualized effective tax rate approach. Related Payables represent tax-related payables including the amount payable to the holders of the tax receivable agreements based on expected tax savings generated in the respective period. See “—Key Financial Measures and Indicators — Distributable Earnings” for the full definition of Taxes and Related Payables.
Taxes
Related Payables
Taxes and Related Payables
This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.
GAAP Interest and Dividend Revenue
GAAP Interest Expense
Net Interest and Dividend Loss
This adjustment removes the total segment amount of Realized Performance Revenues.
This adjustment removes the total segment amount of Realized Performance Compensation.
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This adjustment removes the total segment amount of Realized Principal Investment Income.
This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement.
This adjustment adds back Depreciation and Amortization on a segment basis.
The following tables are a reconciliation of Total GAAP Investments to Net Accrued Performance Revenues. Total GAAP Investments and Net Accrued Performance Revenues consist of the following:
Investments of Consolidated Blackstone Funds
Equity Method Investments
Partnership Investments
Accrued Performance Allocations
Corporate Treasury Investments
Other Investments
Total GAAP Investments
Accrued Performance Allocations - GAAP
Due from Affiliates - GAAP (a)
Less: Net Realized Performance Revenues (b)
Less: Accrued Performance Compensation - GAAP (c)
Represents GAAP accrued performance revenue recorded within Due from Affiliates.
Represents Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable Earnings in the period they are realized.
Represents GAAP accrued Performance Compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation and Benefits and Due to Affiliates.
Liquidity and Capital Resources
General
Blackstone’s business model derives revenue primarily from third-party assets under management. Blackstone is not a capital or balance sheet intensive business and targets operating expense levels such that total management and advisory fees exceed total operating expenses each period. As a result, we require limited capital resources to support the working capital or operating needs of our businesses. We draw primarily on the long-term committed or invested capital of investors in our investment vehicles to fund the investment requirements of the Blackstone Funds and use our own realizations and cash flows to invest in growth initiatives, make commitments to our own funds, where our minimum general partner commitments are generally less than 5% of the limited partner commitments of a fund, and pay dividends to stockholders and distributions to holders of Holdings Units.
Fluctuations in our statement of financial condition result primarily from activities of the Blackstone Funds that are consolidated as well as business transactions, such as the issuance of senior notes and draws on our revolving credit facility (the “Revolving Credit Facility”). The majority economic ownership interests of such consolidated Blackstone funds are reflected as Redeemable Non-Controlling Interests in Consolidated Entities, and Non-Controlling Interests in Consolidated Entities in the Consolidated Financial Statements. The consolidation of
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these Blackstone Funds has no net effect on Blackstone’s Net Income or Equity. Additionally, fluctuations in our statement of financial condition also include appreciation or depreciation in Blackstone investments in the non-consolidated Blackstone funds, additional investments and redemptions of such interests in the non-consolidated Blackstone funds and the collection of receivables related to management and advisory fees.
Total Assets were $49.6 billion as of September 30, 2026, an increase of $1.9 billion from December 31, 2025. The increase in Total Assets was primarily attributable to an increase of $2.6 billion in total assets attributable to consolidated operating partnerships.
The increase in total assets attributable to consolidated operating partnerships was primarily attributable to an increase of $2.2 billion in Investments. The increase in Investments was primarily attributable to appreciation in our Private Equity segment.
Total Liabilities were $28.6 billion as of September 30, 2026, an increase of $2.8 billion from December 31, 2025. The increase in Total Liabilities was primarily attributable to an increase of $2.5 billion in total liabilities attributable to consolidated operating partnerships.
The increase in total liabilities attributable to consolidated operating partnerships was primarily attributable to increases of $942.1 million in Due to Affiliates, $692.3 million in Accrued Compensation and Benefits and $640.0 million in Loans Payable.
The increase in Due to Affiliates was primarily attributable to an increase in unrealized clawback obligations in our Real Estate segment.
The increase in Accrued Compensation and Benefits was primarily attributable to an increase in compensation-related accruals.
The increase in Loans Payable was primarily attributable to borrowing and repayment activity on our Revolving Credit Facility.
Sources and Uses of Liquidity
We have multiple sources of liquidity to meet our capital needs, including annual cash flows, accumulated earnings in our businesses, the proceeds from our issuances of senior notes and other borrowings, liquid investments we hold on our Condensed Consolidated Statement of Financial Condition and access to our $4.325 billion committed Revolving Credit Facility. As of September 30, 2026, Blackstone had $3.0 billion in Cash and Cash Equivalents, $168.3 million invested in Corporate Treasury Investments and $8.9 billion in Other Investments (which included $8.2 billion of liquid investments), against $13.1 billion in borrowings, which included our bond issuances and $700.0 million of outstanding borrowings under the Revolving Credit Facility.
On November 2, 2026, Blackstone, through its subsidiary Blackstone Reg Finance Co. L.L.C., issued $600.0 million aggregate principal amount 5.650% senior notes due November 3, 2031 (the “Registered 2031 Notes”), and $500.0 million aggregate principal amount of 5.900% senior notes due November 3, 2033 (the “Registered 2032 Notes”) and, together with the Registered 2031 Notes, (the “Registered Notes”), pursuant to a Registration Statement on Form S-3. For additional information see Note 11. “Borrowings” in the “Notes to Condensed Consolidated Financial Statements” in “— Item 1. Financial Statements” of this filing and “— Notable Transactions.”
In addition to the cash we receive from our notes offerings and availability under the Revolving Credit Facility and other borrowings, we expect to receive (a) cash generated from operating activities, (b) Performance Revenue realizations, and (c) realizations on the fund investments that we make. The amounts and timing of cash received from sources in particular may vary substantially from year to year and quarter to quarter depending on the frequency and size of realization events, timing of settlement, the form in which we elect to receive payment (including in-kind) and net returns experienced by our investment funds. Our available capital could be adversely affected if there are prolonged periods of few substantial realizations from our investment funds accompanied by substantial capital calls for new investments from those investment funds. Therefore, Blackstone’s commitments to our funds are taken into consideration when managing our overall liquidity and cash position.
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We expect that our primary liquidity needs will be cash to (a) provide capital to facilitate the growth of our existing businesses, which includes, without limitation, funding our general partner and co-investment commitments to our funds and warehousing investments for our funds, (b) provide capital for business expansion, (c) pay operating expenses, including cash compensation to our employees, and other obligations as they arise, including servicing debts, (d) pay income taxes and (e) pay dividends to our stockholders, make distributions to the holders of Blackstone Holdings Partnership Units and make repurchases under our share repurchase program. For a tabular presentation of Blackstone’s contractual obligations and the expected timing of such see “—Contractual Obligations.”
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Capital Commitments
Our own capital commitments to our funds, the funds we invest in and our investment strategies as of September 30, 2026 consisted of the following:
Fund
BREP VII
BREP Europe III
BREP Europe IV
BREP Europe V
BREP Europe VI
BREP Europe VII
BREP Asia I
BREDS III
BREDS IV
BREDS V
BREC-I
Other (c)
Total Real Estate
BCP V
BEP I
BETP V
BCP Asia III
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Capital Commitments continued
Core Private Equity I
Core Private Equity II
BIP
Total Private Equity
Mezzanine / Opportunistic II
Mezzanine / Opportunistic III
Mezzanine / Opportunistic IV
Mezzanine / Opportunistic V
Stressed / Distressed II
Stressed / Distressed III
European Senior Debt I
European Senior Debt II
European Senior Debt III
Energy I
Energy II
Energy III
Energy SMAs
Credit Alpha Fund
Credit Alpha Fund II
Direct Lending SMAs
European Senior Direct Lending Fund
Blackstone Asset Based Finance Partners LP
Blackstone Onyx Limited
Blackstone Private IG Fund L.P.
Total Credit & Insurance
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Strategic Alliance III
Strategic Alliance IV
Dislocation
SRT Core
Total Multi-Asset Investing
Treasury (d)
We expect our commitments to be drawn down over time and to be funded by available cash and cash generated from operations and realizations. Taking into account prevailing market conditions and both the liquidity and cash or liquid investment balances, we believe that the sources of liquidity described above will be more than sufficient to fund our working capital requirements. Additionally, for some of the general partner commitments shown in the table above, we require our senior managing directors and certain other professionals to fund a portion of the commitment even though the ultimate obligation to fund the aggregate commitment is ours pursuant to the governing agreements of the respective funds. The amounts of the aggregate applicable general partner original and remaining commitment are shown in the table above. Remaining commitment may exceed original commitment due to recallable capital.
Includes the full portion of our commitments (1) required to be funded by senior managing directors and certain other professionals and (2) that are elected by such individuals to be funded for the life of a fund, where such fund permits such election. Excludes amounts that are elected by such individuals to be funded on an annual basis and certain de minimis commitments funded by such individuals in certain carry funds.
Represents capital commitments in each respective segment to a number of other funds.
Represents loan origination commitments, revolver commitments and capital market commitments. Loan origination commitments are presented net of amounts committed by Blackstone Funds.
For a tabular presentation of the timing of Blackstone’s remaining capital commitments to our funds, the funds we invest in and our investment strategies see “—Contractual Obligations.”
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Borrowings
As of September 30, 2026, Blackstone Holdings Finance Co. L.L.C. and Blackstone Reg Finance Co. L.L.C. (each an “Issuer” and together the “Issuers”), both indirect subsidiaries of Blackstone, had issued and outstanding the following senior notes (collectively the “Notes”):
Senior Notes (a)
1.000%, Due 10/5/2026
3.150%, Due 10/2/2027
5.900%, Due 11/3/2027
1.625%, Due 8/5/2028
1.500%, Due 4/10/2029
2.500%, Due 1/10/2030
4.300%, Due 11/3/2030 (b)
1.600%, Due 3/30/2031
2.000%, Due 1/30/2032
2.550%, Due 3/30/2032
6.200%, Due 4/22/2033
3.500%, Due 6/1/2034
5.000%, Due 12/6/2034 (b)
4.950%, Due 2/15/2036 (b)
6.250%, Due 8/15/2042
5.000%, Due 6/15/2044
4.450%, Due 7/15/2045
4.000%, Due 10/2/2047
3.500%, Due 9/10/2049
2.800%, Due 9/30/2050
2.850%, Due 8/5/2051
3.200%, Due 1/30/2052
The Notes are unsecured and unsubordinated obligations of the Issuers, as applicable, and are fully and unconditionally guaranteed, jointly and severally, by Blackstone Inc. and each of the Blackstone Holdings Partnerships (the “Guarantors”). The Notes contain customary covenants and financial restrictions that, among other things, limit the Issuers and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The Notes also contain customary events of default. All or a portion of the Notes may be redeemed at our option, in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the Notes are subject to repurchase at the repurchase price as set forth in the Notes.
The Registered 2030, 2034 and 2036 Notes’ Guarantors and Issuer, Blackstone Reg Finance Co. L.L.C. (collectively, the “Obligor Group”) do not have material assets, liabilities and results of operations, with the exception of certain amounts already disclosed in our condensed consolidated financial statements (specifically, goodwill, the majority of our deferred tax assets, the Tax Receivable Agreement liability and the
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Blackstone, through Blackstone Holdings Finance Co. L.L.C., has a $4.325 billion unsecured Revolving Credit Facility with Citibank, N.A., as administrative agent with a maturity date of October 16, 2030. As of September 30, 2026, Blackstone had $700.0 million of outstanding borrowings under the Revolving Credit Facility. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under management, each tested quarterly.
For a tabular presentation of the payment timing of principal and interest due on Blackstone’s issued notes and the Revolving Credit Facility see “—Contractual Obligations.”
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Contractual Obligations
The following table sets forth information relating to our contractual obligations as of September 30, 2026 on a consolidated basis and on a basis deconsolidating the Blackstone funds:
Operating Lease Obligations (a)
Purchase Obligations
Blackstone Operating Borrowings (b)
Interest on Blackstone Operating Borrowings (c)
Borrowings of Consolidated Blackstone Funds
Interest on Borrowings of Consolidated Blackstone Funds
Blackstone Funds Capital Commitments to Investee Funds (d)
Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable Agreements (e)
Unrecognized Tax Benefits, Including Interest and Penalties (f)
Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other (g)
Consolidated Contractual Obligations
Blackstone Operating Entities Contractual Obligations
We lease our primary office space and certain office equipment under agreements that expire through 2043. Occupancy lease agreements, in addition to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable they are included in the table above. The table above includes operating leases that are recognized as Operating Lease Liabilities, short-term leases that are not recorded as Operating Lease Liabilities and leases that have been signed but not yet commenced which are not recorded as Operating Lease Liabilities. The amounts in this table are presented net of contractual sublease commitments.
Represents the principal amounts due on our senior notes. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. As of September 30, 2026, we had $700.0 million of outstanding borrowings under our Revolving Credit Facility, which are presented as due in 2030, the contractual maturity date of the Revolving Credit Facility.
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Represents interest to be paid over the maturity of our senior notes. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. These amounts include commitment fees for unutilized borrowings under the Revolving Credit Facility.
These obligations represent commitments of the consolidated Blackstone funds to make capital contributions to investee funds and portfolio companies. These amounts are generally due on demand and are therefore presented in the less than one year category.
Represents obligations by Blackstone to make payments under the tax receivable agreements to certain non-controlling interest holders for the tax savings realized from the taxable purchases of their interests in connection with the reorganization at the time of Blackstone’s initial public offering (“IPO”) in 2007 and subsequent purchases. The obligation represents the amount of the payments currently expected to be made, which are dependent on the tax savings expected to be realized as determined annually without discounting for the timing of the payments. As required by GAAP, the amount of the obligation included in the condensed consolidated financial statements and shown in Note 15. “Related Party Transactions” (see “—Item 1. Financial Statements”) differs to reflect the net present value of the payments due to certain non-controlling interest holders.
Blackstone is not able to make a reasonably reliable estimate of the timing of payments in individual years in connection with gross unrecognized benefits of $360.2 million and interest of $143.8 million as of September 30, 2026; therefore, such amounts are not included in the above contractual obligations table.
These obligations represent commitments by us to provide general partner capital funding to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. These amounts are generally due on demand and are therefore presented in the less than one year category; however, a substantial amount of the capital commitments are expected to be called over the next three years. We expect to continue to make these general partner capital commitments as we raise additional amounts for our investment funds over time.
Guarantees
Blackstone and certain of its consolidated funds provide financial guarantees. The amounts and nature of these guarantees are described in Note 16. “Commitments and Contingencies — Contingencies — Guarantees” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Indemnifications
In many of its service contracts, Blackstone agrees to indemnify the third-party service provider under certain circumstances. The terms of the indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined and has not been included in the above contractual obligations table or recorded in our condensed consolidated financial statements as of September 30, 2026.
Clawback Obligations
Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceed the amount due to Blackstone based on cumulative results of that fund. The amounts and nature of Blackstone’s clawback obligations are described in Note 16. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
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Share Repurchase Program
On July 16, 2024, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership Units. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date.
During the three and nine months ended September 30, 2026, Blackstone repurchased 0.2 million and 0.6 million shares of common stock, pursuant to its repurchase program, at a total cost of $27.1 million and $75.5 million, respectively. As of September 30, 2026, the amount remaining available for repurchases under the program was $1.6 billion.
Dividends
Our intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by our board of directors to be necessary or appropriate to provide for the conduct of our business, to make appropriate investments in our business and funds, to comply with applicable law, any of our debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and dividends to stockholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one quarter.
For Blackstone’s definition of Distributable Earnings, see “—Key Financial Measures and Indicators.”
All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of our board of directors, and our board of directors may change our dividend policy at any time, including, without limitation, to reduce such quarterly dividends or even to eliminate such dividends entirely.
Because the publicly traded entity and/or its wholly owned subsidiaries must pay taxes and make payments under the tax receivable agreements, the amounts ultimately paid as dividends by Blackstone to common stockholders in respect of each fiscal year are generally expected to be less, on a per share or per unit basis, than the amounts distributed by the Blackstone Holdings Partnerships to the Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships in respect of their Blackstone Holdings Partnership Units.
Dividends are treated as qualified dividends to the extent of Blackstone’s current and accumulated earnings and profits, with any excess dividends treated as a return of capital to the extent of the stockholder’s basis.
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The following table shows Distributable Earnings Attributable to Common Stockholders of Blackstone Inc. for the three and nine months ended September 30, 2026 and 2025:
Add: Other Payables Attributable to Common Stockholders
Distributable Earnings Before Certain Payables
Percent to Common Stockholders
Distributable Earnings Before Certain Payables Attributable to Common Stockholders
Less: Other Payables Attributable to Common Stockholders
Distributable Earnings Attributable to Common Stockholders (a)
Distributable Earnings Attributable to Common Stockholders represents Blackstone Inc.’s share of Distributable Earnings for purposes of the dividend policy. See “—Non-GAAP Financial Measures” for a reconciliation of Distributable Earnings to Net Income.
The following graph shows fiscal quarterly and annual per common stockholder dividends for 2026 and 2025. Dividends are declared and paid in the quarter subsequent to the quarter in which they are earned.
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With respect to the third quarter of fiscal year 2026, we paid to stockholders of our common stock a dividend of $1.12 per share, aggregating to $3.57 per share of common stock in respect of the two fiscal quarters ended September 30, 2026. With respect to fiscal year 2025, we paid stockholders aggregate dividends of $4.74 per share.
Leverage
We may, under certain circumstances, use leverage opportunistically and over time to create the most efficient capital structure for Blackstone and our stockholders. In addition to the borrowings from our notes issuances and our Revolving Credit Facility, we may use asset based financing arrangements, including but not limited to margin loans, reverse repurchase agreements, repurchase agreements and securities sold, not yet purchased. Reverse repurchase agreements are entered into primarily to take advantage of opportunistic yields otherwise absent in the overnight markets and also to use the collateral received to cover securities sold, not yet purchased. Repurchase agreements are entered into primarily to opportunistically yield higher spreads on purchased securities. The balances held in these financial instruments fluctuate based on Blackstone’s liquidity needs, market conditions and investment risk profiles.
The following table presents information regarding financial instruments which are included in Accounts Payable, Accrued Expenses and Other Liabilities in our Condensed Consolidated Statements of Financial Condition:
Balance, September 30, 2026
Balance, December 31, 2025
Nine Months Ended September 30, 2026
Average Daily Balance
Maximum Daily Balance
Critical Accounting Policies
We prepare our condensed consolidated financial statements in accordance with GAAP. In applying many of these accounting principles, we need to make assumptions, estimates and/or judgments that affect the reported amounts of assets, liabilities, revenues and expenses in our condensed consolidated financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates and/or judgments, however, are often subjective. Actual results may be affected negatively based on changing circumstances. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts become known. We believe the following critical accounting policies could potentially produce materially different results if we were to change underlying assumptions, estimates and/or judgments. For a description of our accounting policies, see Note 2. “Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Principles of Consolidation
For a description of our accounting policy on consolidation, see Note 2. “Summary of Significant Accounting Policies — Consolidation” and Note 8. “Variable Interest Entities” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” for detailed information on Blackstone’s involvement with VIEs. The following discussion is intended to provide supplemental information about how the application of consolidation principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.
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The determination that Blackstone holds a controlling financial interest in a Blackstone Fund or investment vehicle significantly changes the presentation of our condensed consolidated financial statements. In our Condensed Consolidated Statements of Financial Position included in this filing, we present 100% of the assets and liabilities of consolidated VIEs along with a non-controlling interest which represents the portion of the consolidated vehicle’s interests held by third parties. However, assets of our consolidated VIEs can only be used to settle obligations of the consolidated VIE and are not available for general use by Blackstone. Further, the liabilities of our consolidated VIEs do not have recourse to the general credit of Blackstone. In the Condensed Consolidated Statements of Operations, we eliminate any management fees, Incentive Fees, or Performance Allocations received or accrued from consolidated VIEs as they are considered intercompany transactions. We recognize 100% of the consolidated VIE’s investment income (loss) and allocate the portion of that income (loss) attributable to third-party ownership to non-controlling interests in arriving at Net Income Attributable to Blackstone Inc.
The assessment of whether we consolidate a Blackstone Fund or investment vehicle we manage requires the application of significant judgment. These judgments are applied both at the time we become involved with the VIE and on an ongoing basis and include, but are not limited to:
Determining whether our management fees, Incentive Fees or Performance Allocations represent variable interests – We make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees and at market rates. In making this judgment, we consider, among other things, the extent of third-party investment in the entity and the terms of any other interests we hold in the VIE.
Determining whether kick-out rights are substantive – We make judgments as to whether the third-party investors in a partnership entity have the ability to remove the general partner, the investment manager or its equivalent, or to dissolve (liquidate) the partnership entity, through a simple majority vote. This includes an evaluation of whether barriers to exercise these rights exist.
Concluding whether Blackstone has an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE – As there is no explicit threshold in GAAP to define “potentially significant,” management must apply judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met.
Revenue Recognition
For a description of our accounting policy on revenue recognition, see Note 2. “Summary of Significant Accounting Policies — Revenue Recognition” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements.” For an additional description of the nature of our revenue arrangements, including how management fees, Incentive Fees, and Performance Allocations are generated, please refer to “Part I. Item 1. Business — Fee Structure/Incentive Arrangements” in our Annual Report on Form 10-K for the year ended December 31, 2025. The following discussion is intended to provide supplemental information about how the application of revenue recognition principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.
Management and Advisory Fees, Net — Blackstone earns base management fees from its customers at a fixed percentage of a calculation base. The range of management fee rates and the calculation base from which they are earned, generally, are as follows:
For vehicles within the Real Estate segment:
0.35% to 1.50% of committed capital or invested capital during the investment period, invested capital subsequent to the investment period, or gross asset value for certain drawdown vehicles and co-investment vehicles,
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0.40% to 1.25% of net asset value for certain separately managed accounts, Perpetual Capital vehicles, drawdown vehicles, and co-investment vehicles, and
1.50% of BXMT’s net proceeds received from equity offerings and accumulated “distributable earnings” (which is generally equal to its GAAP net income excluding certain non-cash and other items), subject to certain adjustments.
For vehicles within the Private Equity segment:
0.50% to 1.75% of committed capital during the investment period or invested capital or gross investment value subsequent to the investment period for drawdown vehicles and certain co-investment vehicles,
0.50% to 1.75% of invested capital for certain separately managed accounts and co-investment vehicles, and
0.75% to 1.25% of net asset value for Perpetual Capital vehicles.
For vehicles within the Credit & Insurance segment:
0.20% to 1.00% of net asset value or fair value of investments for certain separately managed accounts and open-ended vehicles,
0.35% to 1.25% of net asset value or gross asset value of our BDCs and certain registered investment companies,
0.30% to 0.50% of the aggregate par amount of collateral assets, including principal cash, for CLO vehicles, and
0.20% to 1.50% of invested capital for drawdown vehicles and certain separately managed accounts.
For vehicles within the Multi-Asset Investing segment:
0.20% to 1.50% of net asset value for all vehicles.
Management fee calculations based on committed capital or invested capital are mechanical in nature and therefore do not require the use of significant estimates or judgments. Management fee calculations based on net asset value, gross asset value, or investment fair value depend on the fair value of the underlying investments within the funds. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds and could vary depending on the valuation methodology that is used as well as economic conditions. See “—Fair Value” below for further discussion of the judgment required for determining the fair value of the underlying investments.
Incentive Fees - When determining whether an incentive arrangement is in accounted for under the equity method or pursuant to revenue recognition rules, Blackstone considers the nature and legal form of the incentive arrangement including whether the incentive arrangement is an attribute of a financial instrument held by Blackstone or a separate contractual agreement. For example, where incentive arrangements with a fund are contractually separate from any interest Blackstone holds in the fund, and Blackstone has the ability to dispose of its investment while retaining the ability to earn the incentive, Blackstone would conclude such arrangement is a contractual fee in scope of ASC 606. Where an incentive arrangement is not an attribute of a financial instrument, it is accounted for in accordance with revenues from contracts with customers guidance. As a form of variable consideration, Blackstone makes judgments regarding the likelihood and magnitude of a potential reversal in the amount of cumulative revenue recognized.
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Investment Income (Loss) — Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. Blackstone has concluded that investments made alongside its limited partners in a partnership which entitle Blackstone to a Performance Allocation represent equity method investments that are not in the scope of the GAAP guidance on accounting for revenues from contracts with customers since the Performance Allocation is an attribute of Blackstone’s general partner or similar financial interest, rather than a separate contractual arrangement with the fund. Blackstone can only transfer that interest in its entirety, inclusive of the Performance Allocation, and as such, accounts for these arrangements under the equity method of accounting. Under the equity method, Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period Blackstone calculates the accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. Performance Allocations in carry fund structures are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results.
The change in the fair value of the investments held by certain Blackstone Funds is a significant input into the accrued Performance Allocation calculation and accrual for potential repayment of previously received Performance Allocations. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “—Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments.
Fair Value
Blackstone uses fair value throughout the reporting process. For a description of our accounting policies related to valuation, see Note 2. “Summary of Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Investments, at Fair Value” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing. The following discussion is intended to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.
The fair value of the investments held by Blackstone Funds is the primary input to the calculation of certain of our management fees, Incentive Fees, Performance Allocations and the related Compensation we recognize. Generally, Blackstone Funds are accounted for in accordance with the GAAP guidance on investment companies, and under the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies, and reflect their investments, including majority-owned and controlled investments, at fair value. In the absence of observable market prices, we utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of the investments. For investments where little market activity exists management’s determination of fair value is based on the best information available in the circumstances, which may incorporate management’s own assumptions and involves a significant degree of judgment, and the consideration of a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks.
Blackstone has also elected the fair value option for certain instruments it owns directly, including loans and receivables, investments in private debt securities and other proprietary investments. Blackstone is required to measure certain financial instruments at fair value, including debt instruments, equity securities and freestanding derivatives.
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Fair Value of Investments or Instruments That Are Publicly Traded
Securities that are publicly traded and for which a quoted market exists will be valued at the closing price of such securities in the principal market in which the security trades, or in the absence of a principal market, in the most advantageous market on the valuation date. When a quoted price in an active market exists, no block discounts or control premiums are permitted regardless of the size of the public security held. In some cases, securities will include legal and contractual restrictions limiting their purchase and sale for a period of time. A discount to the publicly traded price may be appropriate in instances where a legal restriction is a characteristic of the security, such as may be required under SEC Rule 144. The amount of the discount, if taken, shall be determined based on the time period that must pass before the restricted security becomes unrestricted or otherwise available for sale.
Fair Value of Investments or Instruments That Are Not Publicly Traded
Investments for which market prices are not observable include private investments in the equity or debt of operating companies or real estate properties. Our primary methodology for determining the fair values of such investments is generally the income approach which provides an indication of fair value based on the present value of cash flows that a business, security, or property is expected to generate in the future. The most widely used methodology under the income approach is the discounted cash flow method which includes significant assumptions about the underlying investment’s projected net earnings or cash flows, discount rate, capitalization rate and exit multiple. Our secondary methodology, generally used to corroborate the results of the income approach, is typically the market approach. The most widely used methodology under the market approach relies upon valuations for comparable public companies, transactions, or assets, and includes making judgments about which companies, transactions, or assets are comparable. Depending on the facts and circumstances associated with the investment, different primary and secondary methodologies may be used including option value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability weighted methods or recent round of financing.
In certain cases, debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments.
Management Process on Fair Value
Due to the importance of fair value throughout the condensed consolidated financial statements and the significant judgment required to be applied in arriving at those fair values, we have developed a process around valuation that incorporates several levels of approval and review from both internal and external sources. Investments held by Blackstone Funds and investment vehicles are valued on at least a quarterly basis by our internal valuation or asset management teams, which are independent from our investment teams. For investments held by vehicles managed by more than one business unit, Blackstone has developed a process designed to facilitate coordination and alignment, as appropriate, of the fair value of in-scope investments across business units.
For investments valued utilizing the income method and where Blackstone has information rights, we generally have a direct line of communication with each of the Companies’ and underlying assets’ finance teams and collect financial data used to support projections used in a discounted cash flow analysis. The valuation team then analyzes the data received and updates the valuation models reflecting any changes in the underlying cash flow projections, weighted-average cost of capital, exit multiple or capitalization rate, and any other valuation input relevant to economic conditions.
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The results of all valuations of investments held by Blackstone Funds and investment vehicles are reviewed by the relevant business unit’s valuation sub-committee, which is comprised of key personnel from the business unit, typically the chief investment officer, chief operating officer, chief financial officer, head of finance, chief compliance officer (or their respective equivalents where applicable) and other senior managing directors in the business or support functions. To further corroborate results, each business unit also generally obtains either a positive assurance opinion or a range of value from an independent valuation party, at least annually for internally prepared valuations for investments that have been held by Blackstone Funds and investment vehicles for greater than a year and quarterly for certain investments. Our firmwide valuation committee, chaired by our Chief Financial Officer and comprised of senior members of our businesses and representatives from corporate functions, including legal and finance, reviews the valuation process for investments held by us and our investment vehicles, including the application of appropriate valuation standards on a consistent basis. Each quarter, the valuation process is also reviewed by the audit committee of our board of directors, which is comprised of our non-employee directors.
Income Tax
For a description of our accounting policy on taxes and additional information on taxes see Note 2. “Summary of Significant Accounting Policies” and Note 12. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Our provision for income taxes is comprised of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.
Additionally, significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax balances (including any valuation allowance), accrued interest or penalties and uncertain tax positions. In evaluating these judgments, we consider, among other items, projections of taxable income (including the character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that Blackstone uses to manage its business. To the extent any portion of the deferred tax assets are not considered to be more likely than not to be realized, a valuation allowance is recorded.
Revisions in estimates and/or actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax benefits, if any.
Recent Accounting Developments
Information regarding recent accounting developments and their impact on Blackstone, if any, can be found in Note 2. “Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our predominant exposure to market risk is related to our role as general partner or investment adviser to the Blackstone Funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees, Performance Revenues and investment income. There were no material changes in our market risks as of September 30, 2026 as compared to December 31, 2025. For additional information, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
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Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are effective at the reasonable assurance level to accomplish their objectives of ensuring that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
No change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during our most recent quarter, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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Part II. Other Information
Item 1. Legal Proceedings
We may from time to time be involved in litigation and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us. See “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. We are not currently subject to any pending legal (including judicial, regulatory, administrative or arbitration) proceedings that we expect to have a material impact on our condensed consolidated financial statements. However, given the inherent unpredictability of these types of proceedings and the potentially large and/or indeterminate amounts that could be sought, an adverse outcome in certain matters could have a material effect on Blackstone’s financial results in any particular period. See “Part I. Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 16. Commitments and Contingencies — Contingencies — Litigation.”
Item 1A. Risk Factors
For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, as such factors may be updated from time to time in our subsequently filed reports, all of which are accessible on the United States Securities and Exchange Commission’s website at www.sec.gov.
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See “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business Environment” in this report for a discussion of the conditions in the financial markets and economic conditions affecting our businesses. This discussion updates, and should be read together with, the risk factor entitled “Difficult market and geopolitical conditions can adversely affect our business in many ways, each of which could materially reduce our revenue, earnings and cash flow and adversely affect our financial prospects and condition.” in our Annual Report on Form 10-K for the year ended December 31, 2025.
The risks described in our Annual Report on Form 10-K and in our subsequently filed periodic reports are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table sets forth information regarding repurchases of shares of our common stock during the three months ended September 30, 2026:
Period
Jul. 1 - Jul. 31, 2026
Aug. 1 - Aug. 31, 2026
Sep. 1 - Sep. 30, 2026
On July 16, 2024, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership Units. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of shares repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date. See “Part I. Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 13. Earnings Per Share and Stockholders’ Equity — Share Repurchase Program” and “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Share Repurchase Program” for further information regarding this repurchase program.
As permitted by our policies and procedures governing transactions in our securities by our directors, executive officers and other employees, from time to time some of these persons may establish plans or arrangements complying with Rule 10b5-1 under the Exchange Act, and similar plans and arrangements relating to our common stock and Blackstone Holdings Partnership Units.
Item 3. Defaults Upon Senior Securities
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Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
Exhibit Number
Exhibit Description
Filed herewith.
Furnished herewith.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: November 6, 2026
/s/ Michael S. Chae
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