Blackstone Inc.

Blackstone is identified as the world's largest alternative asset manager, with over $1.3 trillion ¹ in Total Assets Under Management as of December 31, 2025 ². The company's global investment strategies encompass real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Blackstone's business model is centered on generating compelling returns for institutional and individual investors by strengthening the companies and assets in which it invests, emphasizing a solutions-oriented approach to drive performance. The firm's scale, diversified business, long record of investment performance, rigorous investment process, and strong client relationships are cited as key factors positioning it for continued performance and growth across various market conditions.

The core business model revolves around generating revenue from contractual fees, including management, transaction, and monitoring fees, and from capital markets services. Additionally, Blackstone invests its own capital in the funds it manages, entitling it to a pro-rata share of fund income. A significant portion of income is also derived from Performance Allocations, commonly known as carried interest, and contractual Incentive Fees, collectively referred to as Performance Revenues, which are contingent on achieving specified investment returns. Primary customer segments include pension funds, insurance companies, and individual investors. The company has also significantly expanded its offerings to high-net-worth and mass affluent individual investors through various distribution channels.

Blackstone operates through four distinct business segments: Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing.

The Real Estate segment is a global leader in real estate investing, managing $319.3 billion ³ of Total Assets Under Management as of December 31, 2025 ⁴. This segment includes the Blackstone Real Estate Partners (BREP) business, which is geographically diversified and targets opportunistic real estate investments, focusing on themes like logistics, data centers, rental housing, hospitality, office, and retail properties. The Core+ real estate strategy invests in stabilized real estate globally, primarily through perpetual capital vehicles such as Blackstone Property Partners (BPP) funds and non-listed REITs like Blackstone Real Estate Income Trust, Inc. (BREIT) and Blackstone European Property Income Fund (BEPIF). The Blackstone Real Estate Debt Strategies (BREDS) platform focuses on real estate-related debt investment opportunities in both public and private markets, including high-yield real estate debt funds, liquid real estate debt funds, and Blackstone Mortgage Trust, Inc. (BXMT).

The Private Equity segment manages $416.4 billion ⁵ of Total Assets Under Management as of December 31, 2025 ⁶, with approximately 720 ⁷ employees. This segment comprises Private Equity Strategies (including Corporate Private Equity, Blackstone Tactical Opportunities, Blackstone Life Sciences, and Blackstone Growth), Infrastructure (Blackstone Infrastructure Partners or BIP, and Blackstone Infrastructure Strategies or BXINFRA), Secondaries (Strategic Partners Fund Solutions and Blackstone GP Stakes), Blackstone Capital Markets (BXCM), and Blackstone Total Alternatives Solution (BTAS). Corporate Private Equity, a global leader, pursues transactions across industries, aiming to create value through capital, strategic insight, global relationships, and operational support. BCEP focuses on control-oriented investments in high-quality companies with durable businesses, seeking lower risk and longer hold periods. Tactical Opportunities employs a thematically driven, hybrid capital investment strategy across asset classes, industries, and geographies. BXLS invests across the life cycle of life sciences companies and products, primarily in late-stage clinical development. BXG targets dynamic, growth-stage businesses in consumer, consumer technology, enterprise solutions, financial services, and healthcare sectors. BXPE invests in privately negotiated, equity-oriented investments. BIP targets a diversified mix of core+, core, and public-private partnership investments across infrastructure sectors, applying a disciplined, operationally intensive investment approach. Strategic Partners acquires interests in high-quality private funds from original holders, focusing on various underlying fund types and GP-led transactions. Blackstone GP Stakes targets minority investments in general partners of private equity and other private market alternative asset management firms.

The Credit & Insurance segment (BXCI) manages $443.0 billion ⁸ of Total Assets Under Management as of December 31, 2025 ⁹, with approximately 815 ¹⁰ employees. BXCI offers comprehensive solutions across corporate and asset-based credit, including investment grade and non-investment grade debt. It is one of the largest credit and CLO managers globally. Investment portfolios primarily consist of loans and securities of non-investment and investment grade companies across the capital structure. BXCI is organized into private corporate credit (mezzanine and direct lending funds, stressed/distressed strategies, and SMAs, including Blackstone Private Credit Fund (BCRED) and Blackstone Secured Lending Fund (BXSL)), liquid corporate credit (CLOs, closed-ended funds, open-ended funds, systematic strategies, and SMAs), and infrastructure and asset-based credit strategies. The insurance platform provides investment management services for insurance and reinsurance accounts, focusing on customized and diversified portfolios primarily of investment grade credit.

The Multi-Asset Investing segment (BXMA) manages $96.2 billion ¹¹ of Total Assets Under Management as of December 31, 2025 ¹², with approximately 240 ¹³ employees. BXMA is described as the world's largest discretionary allocator to hedge funds, building multi-asset portfolios across public and private markets. Its investment platforms include Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets (managed by Harvest Fund Advisors LLC, primarily investing in publicly traded energy infrastructure, renewables, and master limited partnerships in North America).

For the year ended December 31, 2025, total revenues were $14,450,265 thousand ¹⁴, an increase of $1,220,297 thousand ¹⁵ or 9% ¹⁶ compared to $13,229,968 thousand ¹⁷ for the year ended December 31, 2024. Management and Advisory Fees, Net, increased by $886,665 thousand ¹⁸ to $8,075,601 thousand ¹⁹ in 2025 from $7,188,936 thousand ²⁰ in 2024. Incentive Fees increased by $14,024 thousand ²¹ to $978,202 thousand ²² in 2025 from $964,178 thousand ²³ in 2024. Total Investment Income increased by $709,240 thousand ²⁴ to $5,251,242 thousand ²⁵ in 2025 from $4,542,002 thousand ²⁶ in 2024. Total Expenses were $7,702,607 thousand ²⁷ in 2025, an increase of $883,281 thousand ²⁸ or 13% ²⁹ from $6,819,326 thousand ³⁰ in 2024. Income Before Provision for Taxes increased by $712,166 thousand ³¹ to $7,171,646 thousand ³² in 2025 from $6,459,480 thousand ³³ in 2024. Net Income Attributable to Blackstone Inc. was $3,019,214 thousand ³⁴ in 2025, an increase of $242,706 thousand ³⁵ or 9% ³⁶ from $2,776,508 thousand ³⁷ in 2024.

Year-over-year comparisons for 2025 versus 2024 show significant shifts. Management and Advisory Fees, Net, increased by $886,665 thousand ³⁸, primarily driven by increases in the Private Equity segment ($573.3 million ³⁹) and Credit & Insurance segment ($347.8 million ⁴⁰). The Private Equity increase was due to fee holiday expirations of BCP IX and BETP IV, increased Fee-Earning Assets Under Management in BXPE and BIP, and increased deal activity in BXCM. The Credit & Insurance increase was mainly from higher Base Management Fees due to increased Fee-Earning Assets Under Management in private credit strategies. Total Investment Income increased by $709,240 thousand ⁴¹, largely due to a $569.9 million ⁴² increase in Realized Investment Income, primarily from higher realized gains in the Credit & Insurance segment, including the sale of Bistro and monetization of Blackstone's stake in Resolution Life. Total Expenses increased by $883,281 thousand ⁴³, with Compensation and Benefits rising by $626,476 thousand ⁴⁴ and General, Administrative and Other expenses increasing by $162,639 thousand ⁴⁵. Interest Expense also increased by $64,626 thousand ⁴⁶.

During the reported period, Blackstone entered into an amended and restated $4.325 billion ⁴⁷ revolving credit facility on October 16, 2025 ⁴⁸, extending its maturity date to October 16, 2030 ⁴⁹ and increasing the aggregate required minimum amount of fee generating assets under management. On November 3, 2025 ⁵⁰, Blackstone issued $600 million ⁵¹ aggregate principal amount of 4.300% ⁵² senior notes due November 3, 2030 ⁵³ and $600 million ⁵⁴ aggregate principal amount of 4.950% ⁵⁵ senior notes due February 15, 2036 ⁵⁶ for general corporate purposes. The Secured Borrowings Due 10/27/2033 and 1/29/2035 were repaid during the year ended December 31, 2025.

The filing indicates that the economic outlook for 2026 remains uncertain, despite a gradual improvement in capital markets and transaction activity in the latter part of 2025, supported by resilient economic backdrop and moderating interest rates in several major economies. However, concerns regarding the trajectory of inflation and interest rates in the U.S., continued geopolitical turbulence, and the potential impact of artificial intelligence-related disruptions across industries have more recently adversely impacted investor sentiment and the market environment.

Blackstone expects to continue undertaking initiatives to expand its Perpetual Capital assets under management, which are defined as assets under management with an indefinite term, not in liquidation, and with no requirement to return capital to investors through ordinary course redemption requests, except where funded by new capital inflows or where required redemptions are limited in quantum. These strategies, which include certain Core+ real estate vehicles (BREIT and BEPIF), BXMT, BIP, BXPE, BXINFRA, and vehicles in GP Stakes, represent a significant and growing portion of the overall business and are expected to contribute to management fees and performance revenues.

The company also plans to continue expanding the number and type of investment products offered to individual investors through various distribution channels, including high-net-worth and mass affluent individuals in the U.S. and other jurisdictions. This Private Wealth business is dedicated to building distribution capabilities and broadening access to private markets for retirement savers through the defined contribution plan channel. Capital from the private wealth channel has been an increasing portion of Total Assets Under Management, and this trend is expected to continue.

Regarding operational outlook, the filing notes that the Revolving Credit Facility was amended and restated on October 16, 2025 ⁵⁷, extending its maturity date to October 16, 2030 ⁵⁸ and increasing the aggregate required minimum amount of fee generating assets under management. As of December 31, 2025 ⁵⁹, Blackstone had no borrowings outstanding under the Revolving Credit Facility, but in February 2026 ⁶⁰, the company drew $900.0 million ⁶¹ under this facility. The CLO Notes Payable were fully deconsolidated as of December 31, 2025 ⁶², with no outstanding borrowings for the current period.

Planned capital allocation includes the issuance of $600 million ⁶³ aggregate principal amount of 4.300% ⁶⁴ senior notes due November 3, 2030 ⁶⁵ and $600 million ⁶⁶ aggregate principal amount of 4.950% ⁶⁷ senior notes due February 15, 2036 ⁶⁸ on November 3, 2025 ⁶⁹. The net proceeds from these notes are intended for general corporate purposes. The company's intention is to pay a quarterly dividend representing approximately 85% ⁷⁰ of Blackstone Inc.'s share of Distributable Earnings to common stockholders, subject to adjustments by the board of directors for business conduct, investments, legal compliance, debt instruments, and future cash requirements such as tax-related payments, clawback obligations, and ensuing quarter dividends. The dividend amount could also be adjusted upward in any one quarter. Additionally, Blackstone's board of directors authorized the repurchase of up to $2.0 billion ⁷¹ of common stock and Blackstone Holdings Partnership Units on July 16, 2024 ⁷², with $1,689,675 thousand ⁷³ remaining under the program as of December 31, 2025 ⁷⁴.

Management explicitly flagged several structural headwinds and execution risks. Uncertainty regarding the further trajectory of inflation and interest rates creates potential for volatility in debt and equity markets, which could lead to economic deceleration or contraction in certain industries, sectors, or geographies, impacting portfolio company financial results and fund investment returns. A slower-than-expected decrease in interest rates would continue to challenge real estate valuations and fundraising in certain high-net-worth strategies. Conversely, a decline in interest rates and/or widening of credit spreads would make it more difficult for credit funds to replicate strong performance. Geopolitical concerns and other global events, including trade conflict, civil unrest, threats to national security, and armed conflicts, contribute to volatile global equity and debt markets. The economic outlook for 2026 remains uncertain.

Geographic, regulatory, and macro factors identified as constraints include the impact of U.S. and foreign taxation changes, such as the One Big Beautiful Bill Act (OBBBA) signed on July 4, 2025 ⁷⁵, which makes significant changes to U.S. tax law, and the ongoing OECD two-pillar initiative, which could result in increased effective tax rates and compliance costs. Cybersecurity and data protection risks are heightened by the increasing frequency and sophistication of cyber threats, exacerbated by artificial intelligence, potentially leading to data loss, business interruptions, reputational damage, regulatory actions, and financial losses. Rapidly developing global data security and privacy laws, such as the EU's GDPR and the U.S.'s CPRA, increase compliance costs and enforcement risks. Technological developments in artificial intelligence could disrupt markets, increase competition, and introduce legal and regulatory risks. Extensive regulation of businesses, including increased SEC scrutiny of private funds and private fund advisors, creates potential for significant liabilities and penalties. Scrutiny from regulators and investors regarding sustainability matters, including climate change, may impact capital raising and deployment opportunities. Laws and regulations on foreign direct investment, such as CFIUS in the U.S. and the Outbound Order targeting China, may make it more difficult to deploy capital or sell assets in certain jurisdictions.

Blackstone faces substantial risks from difficult market, economic, and geopolitical conditions, which could materially reduce revenue, earnings, and cash flow, and adversely affect financial prospects. A slower-than-expected decrease in interest rates and other financial market challenges could negatively impact asset values and access to capital markets, affecting investment and realization opportunities. The asset management business is intensely competitive, with numerous factors increasing competitive risks, including competitors' greater resources, lower cost of capital, and less regulation. Cybersecurity and data protection risks are significant, with ongoing threats and attacks that could result in data loss, business interruptions, reputational damage, regulatory actions, and financial losses. Rapidly developing global data security and privacy laws, such as the EU's GDPR and the U.S.'s CPRA, increase compliance costs and enforcement risks. Technological developments in artificial intelligence could disrupt markets, increase competition, and introduce legal and regulatory risks. Extensive regulation of businesses, including increased SEC scrutiny of private funds and private fund advisors, creates potential for significant liabilities and penalties. Scrutiny from regulators and investors regarding sustainability matters, including climate change, may impact capital raising and deployment opportunities. Laws and regulations on foreign direct investment, such as CFIUS in the U.S. and the Outbound Order targeting China, may make it more difficult to deploy capital or sell assets in certain jurisdictions. The company is also subject to substantial litigation and regulatory proceedings, which could result in significant liabilities and reputational damage. Employee misconduct, fraud, or deceptive practices at portfolio companies or service providers could similarly lead to liability and reputational harm. Poor performance of investment funds would cause a decline in revenue, income, and cash flow, and may obligate the company to repay Performance Allocations previously paid. The company's use of borrowings to finance its business exposes it to risks, and dependence on significant leverage in fund investments could adversely affect returns. Valuation methodologies for illiquid assets are subject to significant subjectivity and judgment, and fair values may never be realized, potentially leading to losses and reduced fees.

Management's message to shareholders emphasizes Blackstone's position as the world's largest alternative asset manager, committed to delivering compelling returns for investors by strengthening portfolio companies and assets. They highlight the firm's scale, diversified business, long record of investment performance, rigorous investment process, and strong client relationships as key strengths for navigating various market conditions and driving growth. Management notes that the economic outlook for 2026 remains uncertain, with concerns regarding U.S. inflation and interest rates, geopolitical turbulence, and the potential impact of artificial intelligence-related disruptions. Despite these challenges, an overall resilient economic backdrop and moderating interest rates in several major economies supported a gradual improvement in capital markets and transaction activity in late 2025. Strategic priorities include the continued expansion of Perpetual Capital assets under management, which are expected to generate recurring revenues, and increasing the number and type of investment products offered to individual investors through the Private Wealth business. The company intends to pay a quarterly dividend representing approximately 85% ⁷⁶ of Blackstone Inc.'s share of Distributable Earnings, subject to board discretion, and has an authorized share repurchase program of up to $2.0 billion ⁷⁷.