Blackstone Inc. (BX)

Blackstone is the world's largest alternative asset manager, with more than $1.3 trillion in Total Assets Under Management as of December 31, 2025, encompassing global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. The industry is intensely competitive, with competition based on investment performance, transaction execution skills, access to capital, access to and retention of qualified personnel, reputation, range of products and services, innovation and price. The asset management industry is intensely competitive, and Blackstone expects it to remain so, competing both globally and on a regional, industry and sector basis.

Blackstone competes primarily on the basis of investment performance, transaction execution skills, access to capital, access to and retention of qualified personnel, reputation, range of products and services, innovation and price. Competitors include other private funds, specialized investment funds, funds structured for individual investors, hedge funds, funds of hedge funds and other sponsors managing pools of capital, as well as corporate buyers, traditional asset managers, commercial banks, investment banks and other financial institutions including sovereign wealth funds. Blackstone believes its scale, diversified business, long record of investment performance, rigorous investment process and strong client relationships position it to continue to perform well in a variety of market conditions, expand its assets under management, and innovate.

Blackstone generates revenue through management fees, which are generally based on an annual rate but payable on a regular basis typically monthly or quarterly and are not subject to clawback, and through incentive arrangements composed of contractual incentive fees received from certain investment vehicles upon achieving specified cumulative investment returns and a disproportionate allocation of the income generated by investment vehicles otherwise allocable to investors upon achieving certain investment returns, known as Performance Allocations. The ability to generate and realize carried interest is an important element of the business and has historically accounted for a very significant portion of income. Management fees are earned across carry funds, open-ended funds, CLOs, separately managed accounts, credit-focused registered investment companies and BDCs, with fee bases varying by vehicle type including capital commitments, invested capital, net asset value, or total managed assets.

The Real Estate segment is a global leader in real estate investing, with $319.3 billion of Total Assets Under Management as of December 31, 2025, operating as one globally integrated business with approximately 785 employees and investments across the Americas, Europe and Asia. The segment includes the Blackstone Real Estate Partners opportunistic platform, the Core+ real estate strategy through Blackstone Property Partners funds and Blackstone Real Estate Income Trust, Inc., and the Blackstone Real Estate Debt Strategies platform which invests in real estate-related debt including commercial real estate mortgage loans and liquid real estate-related debt securities.

The Private Equity segment encompasses global businesses with approximately 720 employees managing $416.4 billion of Total Assets Under Management as of December 31, 2025, including Private Equity Strategies, Infrastructure, Secondaries, Blackstone Capital Markets, and a private wealth-focused platform. The Credit & Insurance segment has approximately 815 employees and manages $443.0 billion of Total Assets Under Management as of December 31, 2025, organized into private corporate credit, liquid corporate credit, and infrastructure and asset based credit strategies, and is one of the largest credit managers and CLO managers in the world. The Multi-Asset Investing segment has approximately 240 employees managing $96.2 billion of Total Assets Under Management as of December 31, 2025, organized into Absolute Return, Multi-Strategy, Total Portfolio Management and Public Real Assets platforms.

In February 2026, Blackstone drew $900.0 million under the Revolving Credit Facility. The Secured Borrowings Due 10/27/2033 and 1/29/2035 were repaid during the year ended December 31, 2025. As of December 31, 2025, the CLO Notes Payable were fully deconsolidated, and there are no outstanding borrowings for the current period. Each of the remaining unvested units fully vested on January 1, 2026.

Total segment revenues and expenses are comprised of management and advisory fees, performance revenues, and principal investment income, with adjustments to reverse the effect of consolidating Blackstone Funds and to remove transaction-related and non-recurring items. For the years ended December 31, 2025, 2024 and 2023, Other Revenue on a GAAP basis was $(270.9) million, $123.7 million and $(92.9) million and included $(271.2) million, $122.3 million and $(94.7) million of foreign exchange gains (losses), respectively.

Blackstone expects to continue to undertake initiatives to expand the number and type of investment products offered to individual investors, including through the private wealth channel, which has represented an increasing portion of Total Assets Under Management in recent years. The company also expects to continue to undertake initiatives to expand Perpetual Capital strategies, which represent a significant and growing portion of the overall business and the management fees and performance revenues received. In light of the August 2025 Executive Order on Democratizing Access to Alternative Assets for 401(k) Investors, there may be significant future opportunity for the alternative asset management industry to increase distribution of products to individual investors.

Blackstone's insurance platform 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. The company also expects to continue to expand the number and type of investment products offered through various distribution channels to certain high-net-worth and mass affluent individual investors in the U.S. and other jurisdictions around the world, including through the defined contribution plan channel.

As of December 31, 2025, Blackstone had $2.6 billion in Cash and Cash Equivalents, $359.7 million invested in Corporate Treasury Investments and $7.1 billion in Other Investments. The company has a $4.325 billion revolving credit facility with a final maturity date of October 16, 2030, and as of December 31, 2025, had no borrowings outstanding under the Revolving Credit Facility. Long-term debt totaled $12.4 billion in borrowings from prior bond issuances. In February 2026, Blackstone drew $900.0 million under the Revolving Credit Facility.

A slower-than-expected decrease in interest rates would continue to present a challenge to real estate valuations and fundraising in certain real estate strategies targeting high-net-worth investors. Uncertainty regarding the further trajectory of inflation and interest rates creates the potential for volatility in debt and equity markets, which can contribute to economic deceleration or contraction in the rate of growth in certain industries, sectors or geographies. Geopolitical instability has been prevalent in recent years, and 2025 was a year of significant geopolitical events including trade tensions resulting from U.S. tariff implementation and retaliatory tariffs by other countries and ongoing armed conflicts in the Middle East and Ukraine.

Management emphasizes that Blackstone is the world's largest alternative asset manager, seeking to deliver compelling returns for institutional and individual investors by strengthening the companies and assets in which it invests. The forward-looking statements in the report reflect current views with respect to operations, taxes, earnings and financial performance, share repurchases and dividends, and are subject to various risks and uncertainties. The strategic priorities emphasized include continuing to perform well in a variety of market conditions, expanding assets under management, and innovating into new strategies to drive growth and better serve investors.

As of December 31, 2025, Blackstone had $2.6 billion in Cash and Cash Equivalents, $359.7 million invested in Corporate Treasury Investments and $7.1 billion in Other Investments. Long-term debt totaled $12.4 billion in borrowings from prior bond issuances. As of December 31, 2025, Blackstone had no borrowings outstanding under the Revolving Credit Facility, which has a total capacity of $4.325 billion. As of December 31, 2025 and 2024, Blackstone had outstanding but undrawn letters of credit against the Revolving Credit Facility of $39.3 million and $38.9 million, respectively. For the years ended December 31, 2025, 2024 and 2023, Other Revenue on a GAAP basis was $(270.9) million, $123.7 million and $(92.9) million and included $(271.2) million, $122.3 million and $(94.7) million of foreign exchange gains (losses), respectively. As of June 30, 2025, the aggregate market value of the shares of common stock held by non-affiliates was $108.9 billion. As of February 20, 2026, there were 742,180,737 shares of common stock outstanding.

Difficult market, economic and geopolitical conditions can materially reduce revenue, earnings and cash flow, and a slower-than-expected decrease in interest rates would continue to present a challenge to real estate valuations and fundraising in certain strategies. The asset management business is intensely competitive, and a failure to raise capital from third-party investors on attractive fee terms would materially reduce revenue and cash flow. The business depends on the continued service of co-founder Stephen A. Schwarzman, President Jonathan D. Gray, and other key senior managing directors, and the loss of their services would have a material adverse effect. Cybersecurity threats and attacks could result in loss of data, business interruptions, and regulatory actions, and the company faces heightened risk as an alternative asset manager holding significant confidential information. Extensive regulation, including SEC focus on private equity and private funds, creates potential for significant liabilities and penalties, and changes in U.S. and foreign taxation, including the One Big Beautiful Bill Act signed into law on July 4, 2025, could adversely impact the effective tax rate and tax liability.