AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Enforceable commitments, redemption limits and protected insurance mandates create switching friction. Readily terminable accounts and missing evidence of superior peer terms limit the breadth of the advantage.
durability · 2/4 · Long-term capital and repeated contractual disclosures support persistence within existing mandates. Exact durations and protected-capital coverage are missing; early-life forfeiture penalties can be less meaningful.
customer dependency · 3/4 · Capital-call obligations, meaningful potential forfeiture and restricted exit rights strongly constrain migration of existing protected capital. This is contractual dependency, not proof of customer satisfaction or dependence for future allocations.
erosion resilience · 2/4 · Contract protections and no meaningful historical capital-call defaults provide a buffer. Lower competitor fees, investor insourcing and short-notice termination elsewhere leave future fundraising exposed; BCRED fundraising supports demand without resolving those risks.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Management and performance fee revenues increased, but the passages do not isolate effective fee rates, discounts or comparable pricing outcomes. Competitors' lower fees do not establish realized Blackstone price cuts.
retention · 3/4 · Assessed from disclosed switching friction and indirect operating evidence: protected mandates, capital-call compliance and BCRED fundraising support retention capacity. Net flows, repeat-investor rates and voluntary renewal behavior are not supplied.
margin resilience · 2/4 · Reported fee earnings increased despite compensation and other expense growth. Performance-revenue dependence and compensation allocation effects limit evidence of durable margin protection or pricing-led resilience.
contractual freedom · — · Redemption discretion is disclosed, but authority to set or reset management fee rates is not. Fee offsets and valuation-linked calculations describe constraints and mechanics without establishing pricing discretion.
Predictability39
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 45.28
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 19.18
Financial strength—
Missing required inputs: currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 74.78
- netDebtEbitGrade
- 74.10
- interestCoverageGrade
- 100.00
- Debt / FCF (x)
- 2.77
- Net debt / operating income (x)
- 1.29
Capital allocation76
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 21.67
- 3-year average dilution (%)
- 1.74
- 3-year average SBC / revenue (%)
- 10.38
- cashConversionGrade
- 100.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation improved and capital spending declined, while substantial distributions, additional borrowing, equity compensation and investment commitments create competing demands. Consolidated fund activity complicates interpretation; these results support a mixed assessment rather than demonstrated exceptional allocation.
incentive alignment · 2/4 · Actual senior personnel equity interests, mandatory stock bonus deferral and professional capital obligations support alignment. Fully discretionary bonuses and tax-receivable-related distribution differences temper it; complete ownership and vesting terms are unavailable.
execution · 3/4 · Reported BCRED fundraising, higher management fees, improved realized earnings and increased operating cash generation demonstrate execution across several outcomes. Attribution to management is indirect, and selected results do not establish superior investment returns through a full cycle.
governance · 2/4 · Independent valuation corroboration and quarterly audit committee review provide substantive controls. Concentrated preferred-stock voting power and actual director election by its sole holder constrain common-stockholder influence, producing a mixed assessment.
Evidence
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.
Liquidity and Capital Resources: long-term committed or invested capital · Filed 07/08/2026
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 vehicles: redemption restrictions · Filed 07/08/2026
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.
Insurance platform SMAs: termination conditions and cure rights · Filed 07/08/2026
Investors in all of our carry funds (and certain of our hedge funds) make capital commitments to those funds that we are entitled to call from those investors at any time during prescribed periods.
Risk Factors: contractual capital-call rights · Filed 28/02/2025
We have not had investors default on capital calls to any meaningful extent.
Risk Factors: historical capital-call defaults · Filed 28/02/2025
Any investor that did not fund a capital call would generally be subject to several possible penalties, including having a significant amount of its existing investment forfeited in that fund.
Risk Factors: investor default penalties · Filed 28/02/2025
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 vehicles: redemption restrictions · Filed 08/05/2026
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.
Insurance platform SMAs: termination conditions · Filed 08/05/2026
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.
Certain non-insurance SMAs: termination notice periods · Filed 07/08/2026
In addition, competition for fundraising in the private wealth and insurance channels is also driven by the willingness of certain of our competitors to charge lower fees or pay higher or different types of distributors fees.
Competition: lower competitor fees and distributor payments · Filed 27/02/2026
Certain institutional investors have demonstrated a preference to in-source their own investment professionals and to make direct investments in alternative assets without the assistance of private equity advisers like us.
Competition: institutional investors making direct investments · Filed 23/02/2024
In our perpetual capital strategies, BCRED maintained healthy demand with over $14 billion raised in 2025.
Management discussion: BCRED fundraising in 2025 · Filed 27/02/2026
The increase in Fee Related Earnings was primarily attributable to increases of $347.8 million in Management Fees, Net and $40.7 million in Fee Related Performance Revenues, partially offset by increases of $114.0 million in Fee Related Compensation and of $79.0 million in Other Operating Expenses.
Segment analysis: fee earnings revenue and expense changes · Filed 27/02/2026
Management Fees, Net were $1.9 billion for the year ended December 31, 2025, an increase of $347.8 million, compared to $1.6 billion for the year ended December 31, 2024, primarily attributable to an increase in Base Management Fees.
Segment analysis: management fee growth · Filed 27/02/2026
Fee Related Earnings Fee Related Earnings were $613.0 million for the three months ended June 30, 2026, an increase of $69.4 million, compared to $543.6 million for the three months ended June 30, 2025.
Segment analysis: quarterly Fee Related Earnings · Filed 07/08/2026
The increase in Fee Related Earnings was attributable to an increase of $153.1 million in Fee Related Performance Revenues, partially offset by an increase of $92.0 million in Fee Related Compensation.
Segment analysis: performance revenue and compensation changes · Filed 07/08/2026
For the three and six months ended June 30, 2026, Realized Performance Compensation increased by $39.9 million and $68.2 million, respectively, and Fee Related Compensation decreased by $17.5 million and $35.0 million, respectively, which reduced Net Realizations, increased Fee Related Earnings and had a negative impact to Income Before Provision (Benefits) for Taxes and Distributable Earnings in the three and six months ended June 30, 2026.
Key financial measures: compensation allocation effects · Filed 07/08/2026
Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in Thousands) $ $ Six Months Ended June 30, 2026 2025 Operating Activities Net Income $ 3,613,973 $ 2,834,907 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Net Realized Gains on Investments (2,937,722 ) (1,905,804 ) Changes in Unrealized Gains on Investments (207,451 ) (632,886 ) Non-Cash Performance Allocations (870,592 ) (576,484 ) Non-Cash Performance Allocations and Incentive Fee Compensation 1,428,628 953,235 Equity-Based Compensation Expense 915,468 783,445 Amortization of Intangibles 18,072 17,949 Other Non-Cash Amounts Included in Net Income (263,024 ) 136,035 Cash Flows Due to Changes in Operating Assets and Liabilities Cash Acquired with Consolidation of Fund Entities 830 — Cash Relinquished with Deconsolidation of Fund Entities (12,946 ) (65,803 ) Accounts Receivable (402,662 ) (117,317 ) Due from Affiliates 476,083 241,640 Other Assets 194,767 118,683 Accrued Compensation and Benefits (953,907 ) (705,817 ) Accounts Payable, Accrued Expenses and Other Liabilities 166,094 (23,200 ) Due to Affiliates 10,999 (150,153 ) Investments Purchased (1,417,701 ) (2,351,387 ) Cash Proceeds from Sale of Investments 3,173,541 3,440,678 Net Cash Provided by Operating Activities 2,932,450 1,997,721 Investing Activities Purchase of Furniture, Equipment and Leasehold Improvements (65,372 ) (69,424 ) Net Cash Used in Investing Activities (65,372 ) (69,424 ) Financing Activities Distributions to Non-Controlling Interest Holders in Consolidated Entities (839,320 ) (481,852 ) Contributions from Non-Controlling Interest Holders in Consolidated Entities 733,252 1,845,102 Payments Under Tax Receivable Agreement (63,820 ) (43,954 ) Net Settlement of Vested Common Stock and Repurchase of Common Stock (108,558 ) (135,363 ) Proceeds from Loans Payable 1,637,859 1,024,556 continued… See notes to condensed consolidated financial statements.
Cash flow statement: operating cash generation, investment activity, equity compensation and borrowing · Filed 07/08/2026
Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in Thousands) $ $ Six Months Ended June 30, 2026 2025 Financing Activities (Continued) Repayment and Repurchase of Loans Payable $ (851,318 ) $ (706,362 ) Dividends/Distributions to Stockholders and Unitholders (3,446,832 ) (3,074,008 ) Net Cash Used in Financing Activities (2,938,737 ) (1,571,881 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other (9,720 ) 16,841 Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other Net Increase (Decrease) (81,379 ) 373,257 Beginning of Period 2,854,682 2,176,192 End of Period $ 2,773,303 $ 2,549,449 Supplemental Disclosure of Cash Flows Information Payments for Interest $ 261,314 $ 248,437 Payments for Income Taxes $ 141,294 $ 296,994 Supplemental Disclosure of Non-Cash Investing and Financing Activities Non-Cash Contributions from Non-Controlling Interest Holders $ 8,994 $ 8,299 Non-Cash Distributions to Non-Controlling Interest Holders $ (9,241 ) $ (9,551 ) Transfer of Interests to Non-Controlling Interest Holders $ (42,613 ) $ 1,626 Net Settlement of Vested Common Stock $ 601,407 $ 580,665 Deferred Tax Asset Increase from Equity Transactions $ 77,800 $ 255,309 Due to Affiliates Increase Related to the Impact of Conversions on Tax Receivable Agreements $ 56,796 $ 199,908 The following table provides a reconciliation of Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other reported within the Condensed Consolidated Statements of Financial Condition: $ $ June 30, 2026 December 31, 2025 Cash and Cash Equivalents $ 2,507,073 $ 2,631,241 Cash Held by Blackstone Funds and Other 266,230 223,441 $ 2,773,303 $ 2,854,682 See notes to condensed consolidated financial statements.
Cash flow statement: debt repayments, distributions and cash balances · Filed 07/08/2026
Commitments and Contingencies Commitments Investment Commitments Blackstone had $ 6.5 billion of investment commitments as of December 31 , 2025 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments.
Commitments and Contingencies: investment commitments · Filed 27/02/2026
Most of our current senior managing directors and other senior personnel have equity interests in our business that entitle such personnel to cash distributions.
Compensation: senior personnel equity interests · Filed 27/02/2026
Baratta was granted 51,216 shares of deferred restricted common stock with a grant date fair value of $8,019,401, reflecting 100% of his annual bonus payment mandatorily deferred into deferred restricted common stock pursuant to the Bonus Deferral Plan.
Executive Compensation: actual mandatory bonus deferral into stock · Filed 27/02/2026
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.
Capital commitments: professional funding obligations · Filed 07/08/2026
The ultimate bonus payments that are made are fully discretionary as further discussed below under “—Determination of Incentive Compensation.”
Executive Compensation: discretionary bonus payments · Filed 27/02/2026
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: tax receivable payments and distribution differences · Filed 07/08/2026
Risks Related to Our Organizational Structure • The significant voting power of holders of our Series I preferred stock and Series II preferred stock may limit the ability of holders of our common stock to influence our business.
Organizational structure: preferred-stock voting power · Filed 27/02/2026
Item 5. Other Information Election of Directors On August 6, 2026, Blackstone Group Management L.L.C., by a written consent as the sole holder of our Series II preferred stock, elected Stephen A.
Other Information: director election by sole Series II preferred stockholder · Filed 07/08/2026
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.
Valuation governance: independent valuation corroboration · Filed 07/08/2026
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.
Valuation governance: quarterly audit committee review · Filed 07/08/2026
Management fee offsets are reductions to management fees payable by the investors of the Blackstone Funds, which includes amounts such investors reimburse the Blackstone Funds or Blackstone primarily for placement fees, rebates and other consideration determined to be an adjustment to the transaction price.
Revenue recognition: management fee offsets · Filed 07/08/2026
141 Table of Contents 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.
Valuation: fair-value inputs to certain fees · Filed 07/08/2026
Net Realizations Net Realizations were $132.3 million for the three months ended June 30, 2026, an increase of $110.0 million, compared to $22.2 million for the three months ended June 30, 2025.
Segment analysis: realized earnings improvement · Filed 07/08/2026
However, the impact of the forfeiture penalty is directly correlated to the amount of capital previously invested by the investor in the fund and if an investor has invested little or no capital, for instance early in the life of the fund, then the forfeiture penalty may not be as meaningful.
Risk Factors: weaker forfeiture deterrent early in fund life · Filed 28/02/2025
