Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 22, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BX | ||
Entity Registrant Name | BLACKSTONE GROUP L.P. | ||
Entity Central Index Key | 1,393,818 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 658,590,547 | ||
Entity Public Float | $ 21.3 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and Cash Equivalents | $ 2,207,841 | $ 1,992,497 |
Cash Held by Blackstone Funds and Other | 337,320 | 1,929,531 |
Investments (including assets pledged of $279,502 and $169,746 at December 31, 2018 and December 31, 2017, respectively) | 20,377,031 | 24,434,049 |
Accounts Receivable | 636,238 | 875,018 |
Due from Affiliates | 1,994,123 | 2,028,137 |
Intangible Assets, Net | 468,507 | 409,828 |
Goodwill | 1,869,860 | 1,778,192 |
Other Assets | 294,248 | 242,697 |
Deferred Tax Assets | 739,482 | 725,970 |
Total Assets | 28,924,650 | 34,415,919 |
Liabilities and Partners' Capital | ||
Loans Payable | 9,951,862 | 14,815,436 |
Due to Affiliates | 1,035,776 | 937,158 |
Accrued Compensation and Benefits | 2,942,128 | 2,623,492 |
Securities Sold, Not Yet Purchased | 142,617 | 154,380 |
Repurchase Agreements | 222,202 | 118,840 |
Accounts Payable, Accrued Expenses and Other Liabilities | 875,979 | 2,043,522 |
Total Liabilities | 15,170,564 | 20,692,828 |
Commitments and Contingencies | ||
Redeemable Non-Controlling Interests in Consolidated Entities | 141,779 | 210,944 |
The Blackstone Group L.P. Partners' Capital | ||
Partners' Capital (common units: 663,212,830 issued and outstanding as of December 31, 2018; 659,526,093 issued and outstanding as of December 31, 2017) | 6,415,700 | 6,668,511 |
Accumulated Other Comprehensive Income | (36,476) | (34,018) |
Total The Blackstone Group L.P. Partners' Capital | 6,379,224 | 6,634,493 |
Non-Controlling Interests in Consolidated Entities | 3,648,766 | 3,253,148 |
Non-Controlling Interests in Blackstone Holdings | 3,584,317 | 3,624,506 |
Total Partners' Capital | 13,612,307 | 13,512,147 |
Total Liabilities and Partners' Capital | $ 28,924,650 | $ 34,415,919 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments assets pledged | $ 279,502 | $ 169,746 |
Partners' Capital, common units: issued | 663,212,830 | 659,526,093 |
Partners' Capital, common units: outstanding | 663,212,830 | 659,526,093 |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | $ 8,890,745 | $ 15,050,406 |
Liabilities | 7,177,062 | 13,158,295 |
Consolidated Blackstone Funds | Repurchase Agreements | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 222,202 | 118,840 |
Consolidated Blackstone Funds | Loans Payable | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 6,480,711 | 11,300,621 |
Securities Sold, Not Yet Purchased | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 92,603 | 89,907 |
Investments | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 8,363,669 | 12,948,653 |
Accounts Receivable | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 179,863 | 470,156 |
Cash Held by Funds and Other | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 337,030 | 1,580,296 |
Due from Affiliates | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 6,303 | 46,112 |
Other Assets | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 3,880 | 5,189 |
Due to Affiliates | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 129,370 | 86,393 |
Accounts Payable, Accrued Expenses and Other Liabilities | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | $ 252,176 | $ 1,562,534 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Allocations | |||
Realized | $ 1,876,507 | $ 3,571,811 | $ 1,495,439 |
Unrealized | 561,373 | (105,473) | 530,114 |
Principal Investments | |||
Realized | 415,862 | 635,769 | 278,737 |
Unrealized | 49,917 | 42,605 | 77,314 |
Total Investment Income | 2,903,659 | 4,144,712 | 2,381,604 |
Interest and Dividend Revenue | 171,947 | 139,696 | 95,724 |
Other | 672,317 | (133,229) | 54,753 |
Total Revenues | 6,833,259 | 7,145,015 | 5,146,299 |
Expenses | |||
Compensation and Benefits Compensation | 1,609,957 | 1,442,485 | 1,335,408 |
Incentive Fee Compensation | 33,916 | 105,279 | 68,921 |
Performance Allocations Compensation | |||
Realized | 711,076 | 1,281,965 | 465,129 |
Unrealized | 319,742 | 103,794 | 333,528 |
Total Compensation and Benefits | 2,674,691 | 2,933,523 | 2,202,986 |
General, Administrative and Other | 594,873 | 488,582 | 541,624 |
Interest Expense | 163,990 | 197,486 | 152,654 |
Fund Expenses | 78,486 | 132,787 | 52,181 |
Total Expenses | 3,512,040 | 3,752,378 | 2,949,445 |
Other Income | |||
Reduction of Tax Receivable Agreement Liability | 403,855 | ||
Net Gains from Fund Investment Activities | 191,722 | 321,597 | 184,750 |
Total Other Income | 191,722 | 725,452 | 184,750 |
Income Before Provision for Taxes | 3,512,941 | 4,118,089 | 2,381,604 |
Provision for Taxes | 249,390 | 743,147 | 132,362 |
Net Income | 3,263,551 | 3,374,942 | 2,249,242 |
Net Income (Loss) Attributable to Redeemable Non- Controlling Interests in Consolidated Entities | (2,104) | 13,806 | 3,977 |
Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 358,878 | 497,439 | 246,152 |
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | 1,364,989 | 1,392,323 | 960,099 |
Net Income Attributable to The Blackstone Group L.P. | $ 1,541,788 | $ 1,471,374 | $ 1,039,014 |
Net Income Per Common Unit | |||
Common Units, Basic | $ 2.27 | $ 2.21 | $ 1.60 |
Common Units, Diluted | $ 2.26 | $ 2.21 | $ 1.56 |
Weighted-Average Common Units Outstanding | |||
Common Units, Basic | 678,850,245 | 665,453,198 | 649,475,264 |
Common Units, Diluted | 1,206,962,846 | 666,246,846 | 1,195,114,590 |
Management and Advisory Fees, Net | |||
Revenues | |||
Revenues | $ 3,027,796 | $ 2,751,322 | $ 2,464,290 |
Incentive Fees | |||
Revenues | |||
Revenues | $ 57,540 | $ 242,514 | $ 149,928 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income | $ 3,263,551 | $ 3,374,942 | $ 2,249,242 |
Other Comprehensive Income (Loss), Net of Tax - Currency Translation Adjustment | (33,506) | 80,366 | (22,194) |
Comprehensive Income | 3,230,045 | 3,455,308 | 2,227,048 |
Less: Comprehensive Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | (2,104) | 13,806 | 3,977 |
Comprehensive Income Attributable to Non-Controlling Interests in Consolidated Entities | 356,488 | 548,936 | 234,326 |
Comprehensive Income Attributable to Non-Controlling Interests in Blackstone Holdings | 1,336,331 | 1,392,323 | 960,099 |
Comprehensive Income Attributable to The Blackstone Group L.P. | $ 1,539,330 | $ 1,500,243 | $ 1,028,646 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Common Units | Accumulated Other Comprehensive (Loss) | Parent | Noncontrolling InterestConsolidated Entities | Noncontrolling InterestBlackstone Holdings |
Beginning Balance at Dec. 31, 2015 | $ 12,046,998 | $ 6,322,307 | $ (52,519) | $ 6,269,788 | $ 2,408,701 | $ 3,368,509 |
Beginning Balance, Units at Dec. 31, 2015 | 624,450,162 | |||||
Adoption of ASC 606 | (7,046) | $ (2,177) | (2,177) | (4,869) | ||
Net Income | 2,245,265 | 1,039,014 | 1,039,014 | 246,152 | 960,099 | |
Currency Translation Adjustment | (22,194) | (10,368) | (10,368) | (11,826) | ||
Capital Contributions | 324,630 | 324,630 | ||||
Capital Distributions | (2,549,084) | (1,068,017) | (1,068,017) | (530,415) | (950,652) | |
Transfer of Non-Controlling Interests in Consolidated Entities | (8,278) | (8,278) | ||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 5,369 | 5,369 | 5,369 | |||
Equity-Based Compensation | 314,054 | 166,206 | 166,206 | 147,848 | ||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units | (27,623) | $ (26,572) | (26,572) | (1,051) | ||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units, Units | 6,241,282 | |||||
Change in The Blackstone Group L.P.'s Ownership Interest | (7,881) | $ 7,881 | 7,881 | (7,881) | ||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | $ 77,520 | 77,520 | (77,520) | |||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | 12,768,098 | |||||
Ending Balance at Dec. 31, 2016 | 12,322,091 | $ 6,521,531 | (62,887) | 6,458,644 | 2,428,964 | 3,434,483 |
Ending Balance, Units at Dec. 31, 2016 | 643,459,542 | |||||
Beginning Balance at Dec. 31, 2015 | 183,459 | |||||
Net Income | 3,977 | |||||
Capital Contributions | 15,000 | |||||
Capital Distributions | (17,046) | |||||
Ending Balance at Dec. 31, 2016 | 185,390 | |||||
Consolidation of Fund Entity | 387,006 | 387,006 | ||||
Net Income | 3,361,136 | $ 1,471,374 | 1,471,374 | 497,439 | 1,392,323 | |
Currency Translation Adjustment | 80,366 | 28,869 | 28,869 | 51,497 | ||
Capital Contributions | 730,793 | 730,793 | ||||
Capital Distributions | (3,679,117) | (1,534,586) | (1,534,586) | (836,535) | (1,307,996) | |
Transfer of Non-Controlling Interests in Consolidated Entities | (6,016) | (6,016) | ||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 11,057 | 11,057 | 11,057 | |||
Equity-Based Compensation | 335,023 | 183,484 | 183,484 | 151,539 | ||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units | (30,192) | $ (28,486) | (28,486) | (1,706) | ||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units, Units | 7,084,888 | |||||
Change in The Blackstone Group L.P.'s Ownership Interest | 15,197 | $ (15,197) | (15,197) | 15,197 | ||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | $ 59,334 | 59,334 | (59,334) | |||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | 8,981,663 | |||||
Ending Balance at Dec. 31, 2017 | 13,512,147 | $ 6,668,511 | (34,018) | 6,634,493 | 3,253,148 | 3,624,506 |
Ending Balance, Units at Dec. 31, 2017 | 659,526,093 | |||||
Net Income | 13,806 | |||||
Capital Contributions | 58,920 | |||||
Capital Distributions | (47,172) | |||||
Ending Balance at Dec. 31, 2017 | 210,944 | |||||
Transfer Out Due to Deconsolidation of Fund Entities | (197,091) | (197,091) | ||||
Net Income | 3,265,655 | $ 1,541,788 | 1,541,788 | 358,878 | 1,364,989 | |
Currency Translation Adjustment | (33,506) | (2,458) | (2,458) | (2,389) | (28,659) | |
Capital Contributions | 903,655 | 903,655 | ||||
Capital Distributions | (3,734,027) | (1,635,921) | (1,635,921) | (687,623) | (1,410,483) | |
Transfer or Repurchase of Non-Controlling Interests in Consolidated Entities | 6,541 | (7,642) | (7,642) | 20,188 | (6,005) | |
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 13,907 | 13,907 | 13,907 | |||
Equity-Based Compensation | 366,414 | 204,590 | 204,590 | 161,824 | ||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units | (25,660) | $ (20,198) | (20,198) | (5,462) | ||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units, Units | 4,114,395 | |||||
Repurchase of Blackstone Common Units | (541,501) | $ (541,501) | (541,501) | |||
Repurchase of Blackstone Common Units, Units | (16,000,000) | |||||
Change in The Blackstone Group L.P.'s Ownership Interest | (66,799) | $ 66,799 | 66,799 | (66,799) | ||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | $ 100,397 | 100,397 | (100,397) | |||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | 14,821,603 | |||||
Issuance of Blackstone Common Units and Blackstone Holdings Partnership Units, Units | 750,739 | |||||
Ending Balance at Dec. 31, 2018 | 13,612,307 | $ 6,415,700 | $ (36,476) | 6,379,224 | $ 3,648,766 | 3,584,317 |
Ending Balance, Units at Dec. 31, 2018 | 663,212,830 | |||||
Net Income | (2,104) | |||||
Capital Contributions | 12,980 | |||||
Capital Distributions | (78,688) | |||||
Transfer or Repurchase of Non-Controlling Interests in Consolidated Entities | (1,353) | |||||
Ending Balance at Dec. 31, 2018 | 141,779 | |||||
Issuance of Blackstone Common Units and Blackstone Holdings Partnership Units | $ 75,773 | $ 24,970 | $ 24,970 | $ 50,803 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net Income | $ 3,263,551 | $ 3,374,942 | $ 2,249,242 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities Blackstone Funds Related | |||
Net Realized Gains on Investments | (2,381,683) | (4,613,531) | (2,023,503) |
Changes in Unrealized (Gains) Losses on Investments | 4,784 | (21,589) | (241,617) |
Non-Cash Performance Allocations | (561,373) | 105,472 | (304,705) |
Non-Cash Performance Allocations and Incentive Fee Compensation | 1,053,690 | 1,491,040 | 867,574 |
Equity-Based Compensation Expense | 366,928 | 338,687 | 323,651 |
Amortization of Intangibles | 59,021 | 46,776 | 82,943 |
Other Non-Cash Amounts Included in Net Income | 45,286 | 363,903 | 17,370 |
Cash Flows Due to Changes in Operating Assets and Liabilities | |||
Cash Acquired with Consolidation of Fund Entity | 31,422 | 13,822 | |
Cash Relinquished with Deconsolidation of Fund Entities | (899,959) | (33,566) | |
Accounts Receivable | 43,037 | 282,026 | 87,074 |
Reverse Repurchase Agreements | 118,495 | 86,398 | |
Due from Affiliates | (280,674) | (298,501) | (57,907) |
Other Assets | (76,596) | 17,377 | 99,108 |
Accrued Compensation and Benefits | (729,109) | (1,177,852) | (572,814) |
Securities Sold, Not Yet Purchased | (10,125) | (62,730) | 42,761 |
Accounts Payable, Accrued Expenses and Other Liabilities | (357,582) | (755,232) | (214,723) |
Repurchase Agreements | 103,362 | 43,516 | 34,286 |
Due to Affiliates | 74,108 | (9,652) | 39,035 |
Investments Purchased | (13,881,869) | (19,573,153) | (8,798,358) |
Cash Proceeds from Sale of Investments | 14,179,523 | 18,723,355 | 8,195,594 |
Net Cash Provided by (Used in) Operating Activities | 45,742 | (1,626,395) | (88,591) |
Investing Activities | |||
Purchase of Furniture, Equipment and Leasehold Improvements | (18,377) | (24,347) | (21,826) |
Net Cash Paid for Acquisitions, Net of Cash Acquired | (98,219) | (168,913) | |
Net Cash Used in Investing Activities | (116,596) | (193,260) | (21,826) |
Financing Activities | |||
Distributions to Non-Controlling Interest Holders in Consolidated Entities | (762,588) | (813,987) | (533,925) |
Contributions from Non-Controlling Interest Holders in Consolidated Entities | 836,922 | 759,907 | 329,005 |
Payments Under Tax Receivable Agreement | (135,831) | (78,985) | |
Net Settlement of Vested Common Units and Repurchase of Common and Blackstone Holdings Partnership Units | (567,161) | (30,192) | (27,623) |
Proceeds from Loans Payable | 3,218,399 | 7,600,153 | 3,321,081 |
Repayment and Repurchase of Loans Payable | (1,009,354) | (1,766,129) | (420,714) |
Distributions to Unitholders | (3,046,404) | (2,842,582) | (2,018,669) |
Net Cash Provided by (Used in) Financing Activities | (1,330,186) | 2,771,339 | 570,170 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents, Cash Held by Blackstone Funds and Other, and Restricted Cash | 9,712 | 123,850 | (34,059) |
Cash and Cash Equivalents, Cash Held by Blackstone Funds and Other, and Restricted Cash | |||
Net Increase (Decrease) | (1,391,328) | 1,075,534 | 425,694 |
Beginning of Period | 3,936,489 | 2,860,955 | 2,435,261 |
End of Period | 2,545,161 | 3,936,489 | 2,860,955 |
Supplemental Disclosure of Cash Flows Information | |||
Payments for Interest | 169,872 | 160,178 | 151,948 |
Payments for Income Taxes | 192,790 | 106,032 | 65,790 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Non-Cash Contributions from Non-Controlling Interest Holders | 10,435 | 1,112 | 1,155 |
Non-Cash Distributions to Non-Controlling Interest Holders | (18,723) | (69,721) | (13,536) |
Non-Cash Consideration for Acquisition | (50,803) | (95,262) | |
Net Assets Related to the Consolidation of Certain Fund Entities | 387,006 | ||
Notes Issuance Costs | 5,582 | 5,491 | |
Transfer of Interests to Non-Controlling Interest Holders | 20,188 | (6,016) | (8,278) |
Change in The Blackstone Group L.P.'s Ownership Interest | 66,799 | (15,197) | 7,881 |
Net Settlement of Vested Common Units | 136,238 | 127,392 | 101,898 |
Conversion of Blackstone Holdings Units to Common Units | 100,397 | 59,334 | 77,520 |
Acquisition of Ownership Interests from Non-Controlling Interest Holders Deferred Tax Asset | (93,391) | (74,487) | (59,304) |
Due to Affiliates | 79,484 | 63,430 | 53,935 |
Partners' Capital | 13,907 | $ 11,057 | $ 5,369 |
Issuance of New Units | $ 24,970 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | Dec. 31, 2017USD ($) |
Cash and Cash Equivalents | $ 1,992,497 |
Cash Held by Blackstone Funds and Other | 1,929,531 |
Restricted Cash included in Other Assets | 14,461 |
Cash and Cash Equivalents, Cash Held by Blackstone Funds and Other, and Restricted Cash | $ 3,936,489 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2018 | |
ORGANIZATION | 1. ORGANIZATION The Blackstone Group L.P., together with its subsidiaries (“Blackstone” or the “Partnership”), is a leading global manager of private capital. The alternative asset management business includes the management of private equity funds, real estate funds, real estate investment trusts (“REITs”), funds of hedge funds, hedge funds, credit-focused funds, collateralized loan obligation (“CLO”) vehicles, separately managed accounts and registered investment companies (collectively referred to as the “Blackstone Funds”). Blackstone’s business is organized into four segments: Real Estate, Private Equity, Hedge Fund Solutions and Credit. The Partnership was formed as a Delaware limited partnership on March 12, 2007. The Partnership is managed and operated by its general partner, Blackstone Group Management L.L.C., which is in turn wholly owned by Blackstone’s senior managing directors and controlled by one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”). The activities of the Partnership are conducted through its holding partnerships: 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 Holdings”, “Blackstone Holdings Partnerships” or the “Holding Partnerships”). The Partnership, through its wholly owned subsidiaries, is the sole general partner in each of these Holding Partnerships. Generally, holders of the limited partner interests in the Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone common units, on a one-to-one |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of the Partnership have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Partnership, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which the Partnership is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is presumed to have control. All intercompany balances and transactions have been eliminated in consolidation. Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Consolidated Statements of Cash Flows. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable. Such estimates include those used in the valuation of investments and financial instruments and the accounting for Goodwill and equity-based compensation. Actual results could differ from those estimates and such differences could be material. Consolidation The Partnership consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. The Partnership has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive kick out rights or participating rights that would overcome the control held by the Partnership. Accordingly, the Partnership consolidates Blackstone Holdings and records non-controlling In addition, the Partnership consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a VIE and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. The Partnership determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether the Partnership is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by the Partnership. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Partnership is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Partnership, affiliates of the Partnership or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, the Partnership assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition. Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. Revenue Recognition Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other. Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 19. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers. Investment Income represents the unrealized and realized gains and losses on the Partnership’s Performance Allocations and Principal Investments. Interest and Dividend Revenue comprises primarily interest and dividend income earned on principal investments held by the Partnership. Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars. Management and Advisory Fees, Net The Partnership earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital. These customer contracts require the Partnership to provide investment management services, which represents a performance obligation that the Partnership satisfies over time. Management fees are a form of variable consideration because the fees the Partnership is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid. Transaction, advisory and other fees (including monitoring fees) are principally fees charged to the limited partners of funds indirectly through the managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to the Partnership (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to the Partnership by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for the Partnership’s performance obligation to provide investment management services to the limited partners of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed. Management fee offsets are reductions to management fees payable by the limited partners of the Blackstone Funds, which are based on the amount such limited partners reimburse the Blackstone Funds or the Partnership primarily for placement fees. Providing investment management services requires the Partnership to arrange for services on behalf of its customers. In those situations where the Partnership is acting as an agent on behalf of the limited partners of funds, it presents the cost of services as net against management fee revenue. In all other situations, the Partnership is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented gross as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the limited partners of the funds recorded as Management and Advisory Fees, Net. Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Consolidated Statements of Financial Condition. Incentive Fees — Investment Income (Loss) In certain fund structures across private equity, real estate, hedge fund solutions and credit-focused funds (“carry funds”), Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its pro-rata “pro-rata pro-rata Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, the Partnership calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to the Partnership 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. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Consolidated Statements of Financial Condition. Performance Allocations are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling Principal Investments include the unrealized and realized gains and losses on the Partnership’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive pro-rata Interest and Dividend Revenue Other Revenue Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. The Partnership does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. • Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter • Level III — Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment over-the-counter In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including certain corporate loans and bonds held by Blackstone’s consolidated CLO vehicles and debt securities sold, not yet purchased. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: • Debt Instruments 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. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. • Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. • Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. Level III Valuation Techniques In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance Private Equity Investments Real Estate Investments Credit-Focused Investments The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring. Investments, at Fair Value The Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss). For certain instruments, the Partnership has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. The Partnership has applied the fair value option for certain loans and receivables and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. The Partnership has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, the Partnership measures the liabilities of consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any non-financial Non-Controlling non-consolidated The Partnership has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option”. The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, the Partnership may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, the Partnership will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, Security and loan transactions are recorded on a trade date basis. Equity Method Investments Investments in which the Partnership is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. The Partnership has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which include both a proportionate and disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, the Partnership’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations. In cases where the Partnership’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), the Partnership’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 the Partnership calculates the Accrued Performance Allocations that would be due to the Partnership 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. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition. Cash and Cash Equivalents Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations. Cash Held by Blackstone Funds and Other Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone. Accounts Receivable Accounts Receivable includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectability. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations. Intangibles and Goodwill Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Performance Allocations. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from three to twenty years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the Consolidated Statements of Operations. The Partnership does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill comprises goodwill arising from the contribution and reorganization of the Partnership’s predecessor entities in 2007 immediately prior to its IPO and the acquisitions of GSO in 2008, Strategic Partners in 2013, Harvest Fund Advisors LLC (“Harvest”) in 2017 and Clarus Ventures LLC (“Clarus”) in 2018. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segment is the reporting level for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, a two-step Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and three to seven years for other fixed assets. The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Foreign Currency In the normal course of business, the Partnership may enter into transactions not denominated in United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, the Partnership consolidates a number of entities that have a non-U.S. Non-U.S. non-U.S. Non-Controlling Non-Controlling Comprehensive Incom Comprehensive Income consists of Net Income and Other Comprehensive Income. The Partnership’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments. Non-Controlling Non-Controlling non-controlling non-controlling Redeemable Non-Controlling Non-controlling Non-Controlling non-controlling Non-Controlling Non-Controlling Non-Controlling Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling Compensation and Benefits Compensation and Benefits Compensation Compensation and Benefits — Incentive Fee Compensation — Compensation and Benefits — Performance Allocations Compensation — in-kind). Other Income Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments. Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations. Other Income also includes amounts attributable to the Reduction of the Tax Receivable Agreement Liability. See Note 14. “Income Taxes — Other Income — Reduction of the Tax Receivable Agreement Liability” for additional information. Income Taxes The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in non-U.S. non-U.S. Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. Blackstone uses the flow-through method to account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense. Blackstone analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Blackstone records unrecognized tax benefits on the basis of a two-step Net Income (Loss) Per Common Unit Basic Income (Loss) Per Common Unit is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group L.P. by the weighted-average number of common units, unvested participating common units outstanding for the period and vested deferred restricted common units that have been earned for which issuance of the related common units is deferred until future periods. Diluted Income (Loss) Per Common Unit reflects the assumed conversion of all dilutive securities. Diluted Income (Loss) Per Common Unit excludes the anti-dilutive effect of Blackstone Holdings Partnership Units and deferred restricted common units, as applicable. The Partnership applies the treasury stock method to determine the dilutive weighted-average common units outstanding. The Partnership applies the “if-converted” Repurchase Agreements Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. The Partnership manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Partnership, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. The Partnership takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. The Partnership also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL AND INTANGIBLE ASSETS | 3. GOODWILL AND INTANGIBLE ASSETS On November 30, 2018, Blackstone completed its acquisition of Clarus, a global life sciences investment firm, which resulted in an increase of Goodwill of $91.7 million and an increase in Intangible Assets, primarily comprising of contractual rights to earn future fee income, of $117.7 million. Goodwill arising from the acquisition has been allocated to the Private Equity segment. The carrying value of Goodwill was $1.9 billion and $1.8 billion as of December 31, 2018 and 2017, respectively. At December 31, 2018 and 2017, the Partnership determined there was no evidence of Goodwill impairment. At December 31, 2018, Goodwill has been allocated to each of the Partnership’s four segments as follows: Real Estate ($421.7 million), Private Equity ($870.0 million), Hedge Fund Solutions ($172.1 million), and Credit ($406.1 million). At December 31, 2017, Goodwill has been allocated to each of the Partnership’s four segments as follows: Real Estate ($421.7 million), Private Equity ($778.3 million), Hedge Fund Solutions ($172.1 million), and Credit ($406.1 million). Intangible Assets, Net consists of the following: December 31, 2018 2017 Finite-Lived Intangible Assets / Contractual Rights $ 1,712,576 $ 1,594,876 Accumulated Amortization (1,244,069 ) (1,185,048 ) Intangible Assets, Net $ 468,507 $ 409,828 Changes in the Partnership’s Intangible Assets, Net consists of the following: Year Ended December 31, 2018 2017 2016 Balance, Beginning of Year $ 409,828 $ 262,604 $ 345,547 Amortization Expense (59,021 ) (46,776 ) (82,943 ) Acquisitions 117,700 194,000 — Balance, End of Year $ 468,507 $ 409,828 $ 262,604 Amortization of Intangible Assets held at December 31, 2018 is expected to be $71.0 million, $71.0 million, $71.0 million, $63.3 million and $34.3 million for each of the years ending December 31, 2019, 2020, 2021, 2022, and 2023, respectively. Blackstone’s Intangible Assets as of December 31, 2018 are expected to amortize over a weighted-average period of 8.6 years. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENTS | 4. INVESTMENTS Investments consist of the following: December 31, 2018 2017 Investments of Consolidated Blackstone Funds $ 8,376,338 $ 12,954,121 Equity Method Investments Partnership Investments 3,649,423 3,263,131 Accrued Performance Allocations 5,883,924 5,328,280 Corporate Treasury Investments 2,206,493 2,566,043 Other Investments 260,853 322,474 $ 20,377,031 $ 24,434,049 Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $366.5 million and $488.4 million at December 31, 2018 and December 31, 2017, respectively. Investments of Consolidated Blackstone Funds The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income — Net Gains from Fund Investment Activities in the Consolidated Statements of Operations: Year Ended December 31, 2018 2017 2016 Realized Gains $ 74,784 $ 165,106 $ 123,524 Net Change in Unrealized Losses (54,697 ) (21,016 ) (61,045 ) Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds 20,087 144,090 62,479 Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds 171,635 177,507 122,271 Other Income — Net Gains from Fund Investment Activities $ 191,722 $ 321,597 $ 184,750 Equity Method Investments Blackstone’s equity method investments include Partnership Investments, which represent the pro rata investments, and any associated Accrued Performance Allocations, in private equity funds, real estate funds, funds of hedge funds and credit-focused funds. Partnership Investments also includes the 40% non-controlling Blackstone evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission (“SEC”). As of and for the years ended December 31, 2018, 2017 and 2016, no individual equity method investment held by Blackstone met the significance criteria. As such, Blackstone is not required to present separate financial statements for any of its equity method investments. Partnership Investments Blackstone recognized net gains related to its Partnership Investments accounted for under the equity method of $430.6 million, $609.5 million and $214.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. The summarized financial information of the Partnership’s equity method investments for December 31, 2018 are as follows: December 31, 2018 and the Year Then Ended Real Private Hedge Fund Estate Equity Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 89,742,226 $ 79,718,783 $ 26,336,573 $ 24,634,380 $ 353 $ 220,432,315 Other Assets 3,542,235 2,257,152 3,119,639 1,706,579 125,007 10,750,612 Total Assets $ 93,284,461 $ 81,975,935 $ 29,456,212 $ 26,340,959 $ 125,360 $ 231,182,927 Liabilities and Partners’ Capital Debt $ 15,081,536 $ 9,989,289 $ 350,982 $ 5,087,998 $ — $ 30,509,805 Other Liabilities 3,568,159 749,043 1,529,466 1,338,712 28,295 7,213,675 Total Liabilities 18,649,695 10,738,332 1,880,448 6,426,710 28,295 37,723,480 Partners’ Capital 74,634,766 71,237,603 27,575,764 19,914,249 97,065 193,459,447 Total Liabilities and Partners’ Capital $ 93,284,461 $ 81,975,935 $ 29,456,212 $ 26,340,959 $ 125,360 $ 231,182,927 Statement of Operations Interest Income $ 377,615 $ 1,022,387 $ 6,695 $ 1,130,490 $ — $ 2,537,187 Other Income 1,244,754 92,696 166,842 417,883 106,525 2,028,700 Interest Expense (518,137 ) (278,348 ) (17,780 ) (228,734 ) — (1,042,999 ) Other Expenses (921,990 ) (903,737 ) (150,135 ) (547,612 ) (65,249 ) (2,588,723 ) Net Realized and Unrealized Gain (Loss) from Investments 4,437,434 10,172,066 352,018 (733,747 ) — 14,227,771 Net Income $ 4,619,676 $ 10,105,064 $ 357,640 $ 38,280 $ 41,276 $ 15,161,936 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2017 are as follows: December 31, 2017 and the Year Then Ended Real Private Hedge Fund Estate Equity Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 67,780,737 $ 50,339,913 $ 21,639,763 $ 22,593,717 $ 363 $ 162,354,493 Other Assets 3,077,573 2,283,602 1,969,832 1,573,279 154,131 9,058,417 Total Assets $ 70,858,310 $ 52,623,515 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Liabilities and Partners’ Capital Debt $ 6,329,068 $ 6,779,634 $ 53,787 $ 4,896,346 $ — $ 18,058,835 Other Liabilities 1,618,408 430,763 1,150,307 420,988 39,923 3,660,389 Total Liabilities 7,947,476 7,210,397 1,204,094 5,317,334 39,923 21,719,224 Partners’ Capital 62,910,834 45,413,118 22,405,501 18,849,662 114,571 149,693,686 Total Liabilities and Partners’ Capital $ 70,858,310 $ 52,623,515 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Statement of Operations Interest Income $ 485,751 $ 362,788 $ 2,942 $ 928,670 $ — $ 1,780,151 Other Income 1,334,544 45,770 91,006 178,281 107,204 1,756,805 Interest Expense (180,258 ) (121,876 ) (2,086 ) (127,153 ) — (431,373 ) Other Expenses (703,165 ) (568,369 ) (435,974 ) (258,157 ) (57,830 ) (2,023,495 ) Net Realized and Unrealized Gain from Investments 12,223,852 7,892,937 1,054,516 584,366 — 21,755,671 Net Income $ 13,160,724 $ 7,611,250 $ 710,404 $ 1,306,007 $ 49,374 $ 22,837,759 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2016 are as follows: December 31, 2016 and the Year Then Ended Real Private Hedge Fund Estate Equity Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 62,370,093 $ 49,751,021 $ 21,007,134 $ 17,804,292 $ 7,354 $ 150,939,894 Other Assets 4,384,031 2,815,042 2,434,590 1,478,119 173,917 11,285,699 Total Assets $ 66,754,124 $ 52,566,063 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Liabilities and Partners’ Capital Debt $ 4,034,184 $ 3,715,079 $ 73,915 $ 2,495,778 $ — $ 10,318,956 Other Liabilities 1,591,727 1,254,211 1,837,583 701,986 51,266 5,436,773 Total Liabilities 5,625,911 4,969,290 1,911,498 3,197,764 51,266 15,755,729 Partners’ Capital 61,128,213 47,596,773 21,530,226 16,084,647 130,005 146,469,864 Total Liabilities and Partners’ Capital $ 66,754,124 $ 52,566,063 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Statement of Operations Interest Income $ 445,166 $ 353,179 $ 439 $ 849,508 $ — $ 1,648,292 Other Income 1,499,503 10,620 35,264 32,628 104,669 1,682,684 Interest Expense (141,097 ) (82,370 ) (1,410 ) (157,921 ) — (382,798 ) Other Expenses (605,538 ) (473,790 ) (150,964 ) (224,345 ) (56,407 ) (1,511,044 ) Net Realized and Unrealized Gain from Investments 5,368,361 4,870,332 226,368 1,186,038 515 11,651,614 Net Income $ 6,566,395 $ 4,677,971 $ 109,697 $ 1,685,908 $ 48,777 $ 13,088,748 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. Accrued Performance Allocations Accrued Performance Allocations to the Partnership in respect of certain Blackstone Funds were as follows: Real Estate Private Hedge Fund Credit Total Accrued Performance Allocations, December 31, 2017 $ 2,859,307 $ 1,916,971 $ 13,802 $ 538,200 $ 5,328,280 Performance Allocations as a Result of Changes in Fund Fair Values 991,133 1,456,671 33,185 (16,058 ) 2,464,931 Foreign Exchange Loss (27,051 ) — — — (27,051 ) Fund Distributions (970,128 ) (731,523 ) (24,066 ) (156,519 ) (1,882,236 ) Accrued Performance Allocations, December 31, 2018 $ 2,853,261 $ 2,642,119 $ 22,921 $ 365,623 $ 5,883,924 Corporate Treasury Investments The portion of corporate treasury investments included in Investments represents the Partnership’s investments into primarily fixed income securities, mutual fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments: Year Ended December 31, 2018 2017 2016 Realized Gains (Losses) $ (1,024 ) $ 4,378 $ (20,263 ) Net Change in Unrealized Gains (Losses) (38,113 ) 50,222 19,671 $ (39,137 ) $ 54,600 $ (592 ) Other Investments Other Investments consist primarily of proprietary investment securities held by Blackstone. Other Investments include equity investments without readily determinable fair values which have a carrying value of $49.4 million as of December 31, 2018. The following table presents Blackstone’s Realized and Net Change in Unrealized Gains in Other Investments: Year Ended December 31, 2018 2017 2016 Realized Gains $ 56,381 $ 4,886 $ 2,495 Net Change in Unrealized Gains 20,335 14,324 11,128 $ 76,716 $ 19,210 $ 13,623 |
NET ASSET VALUE AS FAIR VALUE
NET ASSET VALUE AS FAIR VALUE | 12 Months Ended |
Dec. 31, 2018 | |
NET ASSET VALUE AS FAIR VALUE | 5. NET ASSET VALUE AS FAIR VALUE A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of December 31, 2018 is presented below: Strategy Fair Value Unfunded Redemption Redemption Diversified Instruments $ 209,496 $ 127 (a ) (a ) Credit Driven 99,483 268 (b ) (b ) Equity 37,308 — (c ) (c ) Commodities 1,846 — (d ) (d ) $ 348,133 $ 395 (a) Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 3% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 97% of investments in this category are redeemable as of the reporting date. (b) The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 43% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 57% of investments in this category are redeemable as of the reporting date. (c) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. As of the reporting date, the investee fund manager had elected to side-pocket 8% of Blackstone’s investments in the category. (d) The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVE FINANCIAL INSTRUMENTS | 6. DERIVATIVE FINANCIAL INSTRUMENTS Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its non-U.S. Net Investment Hedges Blackstone uses foreign currency forward contracts to hedge portions of Blackstone’s net investments in foreign operations. The gains and losses due to change in fair value attributable to changes in spot exchange rates on foreign currency derivatives designated as net investment hedges were recognized in Other Comprehensive Income (Loss), Net of Tax — Currency Translation Adjustment. For the year ended December 31, 2018 the resulting loss was $1.4 million. Freestanding Derivatives Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts. The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. December 31, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Notional Fair Notional Fair Notional Fair Notional Fair Net Investment Hedges Foreign Currency Contracts $ — $ — $ — $ — $ — $ — $ 50,857 $ 453 Freestanding Derivatives Blackstone Interest Rate Contracts 798,137 43,632 844,620 39,164 225,550 2,042 1,530,751 27,275 Foreign Currency Contracts 224,841 1,286 245,371 1,636 279,050 2,097 296,252 2,975 Credit Default Swaps — — 34,060 4,004 2,073 304 2,073 304 Investments of Consolidated Blackstone Funds Foreign Currency Contracts 108,271 524 16,952 164 493,181 24,087 264,693 5,628 Interest Rate Contracts — — 10,000 311 — — — — Credit Default Swaps 20,952 55 46,685 5,710 45,670 3,731 45,582 5,163 Total Return Swaps — — 31,440 1,855 25,645 526 — — 1,152,201 45,497 1,229,128 52,844 1,071,169 32,787 2,139,351 41,345 $ 1,152,201 $ 45,497 $ 1,229,128 $ 52,844 $ 1,071,169 $ 32,787 $ 2,190,208 $ 41,798 The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments: Year Ended December 31, 2018 2017 2016 Net Investment Hedges — Foreign Currency Contracts Hedge Ineffectiveness $ (8 ) $ (75 ) $ (108 ) Freestanding Derivatives Realized Gains (Losses) Interest Rate Contracts $ 2,968 $ (2,400 ) $ (1,600 ) Foreign Currency Contracts 10,761 (6,333 ) (5,079 ) Credit Default Swaps (539 ) (3,764 ) (5,141 ) Total Return Swaps 145 295 — Equity Options (120 ) (417 ) — $ 13,215 $ (12,619 ) $ (11,820 ) Net Change in Unrealized Gains (Losses) Interest Rate Contracts 36,472 (24,629 ) 1,253 Foreign Currency Contracts (6,682 ) (3,556 ) 25,839 Credit Default Swaps (521 ) 4,881 (3,027 ) Total Return Swaps (2,107 ) (447 ) — Equity Options — 129 — $ 27,162 $ (23,622 ) $ 24,065 As of December 31, 2018, 2017 and 2016, the Partnership had not designated any derivatives as cash flow hedges. |
FAIR VALUE OPTION
FAIR VALUE OPTION | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE OPTION | 7. FAIR VALUE OPTION The following table summarizes the financial instruments for which the fair value option has been elected: December 31, 2018 2017 Assets Loans and Receivables $ 304,173 $ 239,659 Equity and Preferred Securities 390,095 475,485 Debt Securities 529,698 418,061 Assets of Consolidated CLO Vehicles Corporate Loans 6,766,700 10,825,759 Corporate Bonds — 690,125 Other — 458 $ 7,990,666 $ 12,649,547 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes Loans Payable $ 6,473,233 $ 10,594,656 Due to Affiliates 3,201 996 Subordinated Notes Loans Payable 7,478 703,164 Due to Affiliates 52,811 40,390 $ 6,536,723 $ 11,339,206 The following table presents the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected: Year Ended December 31, 2018 2017 2016 Realized Net Change Realized Net Change Realized Net Change in Unrealized Assets Loans and Receivables $ 291 $ (447 ) $ (1,214 ) $ 6,590 $ (42 ) $ 3,375 Equity and Preferred Securities 3,451 (3,589 ) 4,611 22,326 (476 ) 16,033 Debt Securities (1,105 ) (29,069 ) 4,866 (3,390 ) (2,404 ) 426 Assets of Consolidated CLO Vehicles Corporate Loans (8,749 ) (285,698 ) (3,827 ) (6,603 ) (6,128 ) 66,601 Corporate Bonds (24,056 ) 9,693 12,442 (36,219 ) 4,793 18,859 Other — 6 — 454 264 — $ (30,168 ) $ (309,104 ) $ 16,878 $ (16,842 ) $ (3,993 ) $ 105,294 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes $ — $ 51,048 $ — $ — $ — $ — Subordinated Notes — 254,966 — 81,460 (2,400 ) (69,103 ) $ — $ 306,014 $ — $ 81,460 $ (2,400 ) $ (69,103 ) The following table presents information for those financial instruments for which the fair value option was elected: December 31, 2018 December 31, 2017 For Financial Assets For Financial Assets Excess Fair Excess Excess Fair Excess Loans and Receivables $ 2,421 $ — $ — $ 1,207 $ — $ — Debt Securities (26,660 ) — — (372 ) — — Assets of Consolidated CLO Vehicles Corporate Loans (301,085 ) — — (13,495 ) 57,778 (19,633 ) Corporate Bonds — — — (21,455 ) — — $ (325,324 ) $ — $ — $ (34,115 ) $ 57,778 $ (19,633 ) (a) Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. As of December 31, 2018 and 2017, no Loans and Receivables for which the fair value option was elected were past due or in non-accrual non-accrual |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 8. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS The following tables summarize the valuation of the Partnership’s financial assets and liabilities by the fair value hierarchy: December 31, 2018 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds and Short-Term Investments $ 623,526 $ — $ — $ — $ 623,526 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 80,726 80,726 Equity Securities 42,937 34,946 201,566 — 279,449 Partnership and LLC Interests — 7,170 355,273 — 362,443 Debt Instruments — 752,622 133,819 — 886,441 Freestanding Derivatives Foreign Currency Contracts — 524 — — 524 Credit Default Swaps — 55 — — 55 Assets of Consolidated CLO Vehicles Corporate Loans — 6,093,342 673,358 — 6,766,700 Total Investments of Consolidated Blackstone Funds 42,937 6,888,659 1,364,016 80,726 8,376,338 Corporate Treasury Investments Equity Securities 233,834 — — — 233,834 Debt Instruments 243,297 1,444,968 24,568 — 1,712,833 Other — — — 259,826 259,826 Total Corporate Treasury Investments 477,131 1,444,968 24,568 259,826 2,206,493 Other Investments 176,432 — 31,617 7,581 215,630 Total Investments 696,500 8,333,627 1,420,201 348,133 10,798,461 Accounts Receivable — Loans and Receivables — — 304,173 — 304,173 Other Assets Freestanding Derivatives Interest Rate Contracts 1,274 42,358 — — 43,632 Foreign Currency Contracts — 1,286 — — 1,286 Total Other Assets 1,274 43,644 — — 44,918 $ 1,321,300 $ 8,377,271 $ 1,724,374 $ 348,133 $ 11,771,078 December 31, 2018 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 6,473,233 $ — $ 6,473,233 Subordinated Notes (b) — 7,478 — 7,478 Total Loans Payable — 6,480,711 — 6,480,711 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) — 3,201 — 3,201 Subordinated Notes (b) — 52,811 — 52,811 Total Due to Affiliates — 56,012 — 56,012 Securities Sold, Not Yet Purchased 35,959 106,658 — 142,617 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 164 — 164 Credit Default Swaps — 5,710 — 5,710 Total Return Swaps — 1,855 — 1,855 Interest Rate Swaps — 311 — 311 Total Liabilities of Consolidated Blackstone Funds — 8,040 — 8,040 Freestanding Derivatives Interest Rate Contracts 3,080 36,084 — 39,164 Foreign Currency Contracts — 1,636 — 1,636 Credit Default Swaps — 4,004 — 4,004 Total Freestanding Derivatives 3,080 41,724 — 44,804 Total Accounts Payable, Accrued Expenses and Other Liabilities 3,080 49,764 — 52,844 $ 39,039 $ 6,693,145 $ — $ 6,732,184 December 31, 2017 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds $ 853,680 $ — $ — $ — $ 853,680 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 130,339 130,339 Equity Securities 67,443 44,026 131,867 — 243,336 Partnership and LLC Interests — 2,549 331,448 — 333,997 Debt Instruments — 643,608 58,155 — 701,763 Freestanding Derivatives Foreign Currency Contracts — 101 — — 101 Credit Default Swaps — 3,731 — — 3,731 Total Return Swaps — 526 — — 526 Assets of Consolidated CLO Vehicles Corporate Loans — 10,318,316 507,443 — 10,825,759 Corporate Bonds — 690,125 — — 690,125 Freestanding Derivatives — Foreign Currency Contracts — 23,986 — — 23,986 Other — — 458 — 458 Total Investments of Consolidated Blackstone Funds 67,443 11,726,968 1,029,371 130,339 12,954,121 Corporate Treasury Investments Equity Securities 282,866 — — — 282,866 Debt Instruments — 1,943,654 24,249 — 1,967,903 Other — — — 315,274 315,274 Total Corporate Treasury Investments 282,866 1,943,654 24,249 315,274 2,566,043 Other Investments 193,072 14,162 95,393 19,847 322,474 Total Investments 543,381 13,684,784 1,149,013 465,460 15,842,638 Accounts Receivable — Loans and Receivables — — 239,659 — 239,659 Other Assets Freestanding Derivatives Interest Rate Contracts 575 1,467 — — 2,042 Foreign Currency Contracts — 2,097 — — 2,097 Credit Default Swaps — 304 — — 304 Total Other Assets 575 3,868 — — 4,443 $ 1,397,636 $ 13,688,652 $ 1,388,672 $ 465,460 $ 16,940,420 December 31, 2017 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 10,594,656 $ — $ 10,594,656 Subordinated Notes (b) — 703,164 — 703,164 Total Loans Payable — 11,297,820 — 11,297,820 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) — 996 — 996 Subordinated Notes (b) — 40,390 — 40,390 Total Due to Affiliates — 41,386 — 41,386 Securities Sold, Not Yet Purchased — 154,380 — 154,380 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 5,628 — 5,628 Credit Default Swaps — 5,163 — 5,163 Total Liabilities of Consolidated Blackstone Funds — 10,791 — 10,791 Freestanding Derivatives Interest Rate Contracts 415 26,860 — 27,275 Foreign Currency Contracts — 2,975 — 2,975 Credit Default Swaps — 304 — 304 Total Freestanding Derivatives 415 30,139 — 30,554 Net Investment Hedges — Foreign Currency Contracts — 453 — 453 Total Accounts Payable, Accrued Expenses and Other Liabilities 415 41,383 — 41,798 $ 415 $ 11,534,969 $ — $ 11,535,384 (a) Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, such as the general partner of the fund, has a controlling financial interest. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. (b) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (1) the fair value of any beneficial interests held by Blackstone, and (2) the carrying value of any beneficial interests that represent compensation for services. The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2018: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 138,725 Discounted Cash Flows Discount Rate 7.1% - 26.1% 12.6% Revenue CAGR -0.8% - 32.4% 6.6% Book Value Multiple 0.9x - 9.5x 8.3x Exit Capitalization Rate 5.0% - 11.4% 8.0% Exit Multiple - EBITDA 0.1x - 17.5x 10.3x Exit Multiple - NOI 12.8x N/A Exit Multiple - P/E 17.0x N/A 21,050 Market Comparable Companies Book Value Multiple 0.8x - 8.0x 1.3x Dollar/Acre Multiple $7.0 - $44.1 $32.9 21,492 Other N/A N/A N/A 20,250 Transaction Price N/A N/A N/A 49 Third Party Pricing N/A N/A N/A Partnership and LLC Interests 295,251 Discounted Cash Flows Discount Rate 4.1% - 26.5% 9.7% Revenue CAGR -1.1% - 48.4% 26.9% Book Value Multiple 8.5x - 9.3x 9.2x Exit Capitalization Rate 2.9% - 15.0% 6.3% Exit Multiple - EBITDA 0.1x - 15.3x 10.0x Exit Multiple - NOI 13.3x N/A 9,444 Market Comparable Companies Book Value Multiple 1.1x N/A Dollar/Acre Multiple $5.3 - $12.0 $7.5 9,390 Other N/A N/A N/A 41,188 Transaction Price N/A N/A N/A Debt Instruments 8,342 Discounted Cash Flows Discount Rate 7.0% - 19.3% 9.8% Revenue CAGR 0.7% N/A Exit Multiple - EBITDA 6.5x N/A 120,843 Third Party Pricing N/A N/A N/A 4,634 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 41 Discounted Cash Flows Discount Rate 5.0% N/A 673,317 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 1,364,016 Corporate Treasury Investments $ 7,947 Discounted Cash Flows Discount Rate 4.4% - 7.5% 6.6% Default Rate 2.0% N/A Pre-payment Rate 20.0% N/A Recovery Lag 12 Months - 13 Months Recovery Rate 17.5% - 70.0% 67.7% Reinvestment Rate LIBOR + 400 bps N/A 16,621 Third Party Pricing N/A N/A N/A Loans and Receivables 304,173 Discounted Cash Flows Discount Rate 6.1% - 12.8% 8.7% Other Investments 26,631 Discounted Cash Flows Discount Rate 1.0% - 15.0% 2.8% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps N/A 4,986 Transaction Price N/A N/A N/A $ 1,724,374 The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2017: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted- Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 91,753 Discounted Cash Flows Discount Rate 7.1% - 31.4% 12.6% Revenue CAGR 1.0% - 49.4% 7.1% Exit Capitalization Rate 5.0% - 11.4% 8.5% Exit Multiple - EBITDA 4.0x - 16.0x 9.9x Exit Multiple - NOI 8.8x - 12.5x 10.5x Exit Multiple - P/E 9.5x - 17.0x 11.0x 862 Market Comparable Companies Book Value Multiple 0.8x - 0.9x 0.9x Exit Multiple - EBITDA 8.0x N/A 17,536 Other N/A N/A N/A 21,716 Transaction Price N/A N/A N/A Partnership and LLC Interests 293,744 Discounted Cash Flows Discount Rate 4.6% - 26.5% 9.8% Revenue CAGR -22.2% - 71.5% 8.4% Exit Capitalization Rate 3.1% - 10.0% 5.7% Exit Multiple - EBITDA 0.1x - 15.0x 8.6x Exit Multiple - NOI 12.5x N/A 530 Market Comparable Companies Book Value Multiple 1.0x N/A 22,346 Other N/A N/A N/A 758 Third Party Pricing N/A N/A N/A 14,070 Transaction Price N/A N/A N/A Debt Instruments 6,122 Discounted Cash Flows Discount Rate 6.6% - 18.4% 9.6% Revenue CAGR 7.7% N/A Exit Capitalization Rate 8.3% N/A Exit Multiple - NOI 12.0x N/A 50,136 Third Party Pricing N/A N/A N/A 1,897 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 8,277 Market Comparable Companies EBITDA Multiple 7.0x N/A 499,624 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 1,029,371 Corporate Treasury Investments $ 8,886 Discounted Cash Flows Discount Rate 5.1% - 6.3% 5.4% Default Rate 2.0% N/A Pre-payment 20% N/A Recovery Lag 12 Months N/A Recovery Rate 30.0% - 70.0% 68.1% Reinvestment Rate LIBOR + 400 bps N/A 15,363 Third Party Pricing N/A N/A N/A Loans and Receivables 239,659 Discounted Cash Flows Discount Rate 7.1% - 10.3% 8.8% Other Investments 65,821 Discounted Cash Flows Discount Rate 0.7% - 13.0% 2.2% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps - LIBOR + 401 LIBOR + 413 bps bps 29,572 Transaction Price N/A N/A N/A $ 1,388,672 N/A Not applicable. CAGR Compound annual growth rate. EBITDA Earnings before interest, taxes, depreciation and amortization. Exit Multiple Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. NOI Net operating income. P/E Price-earnings ratio. Third Party Pricing Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. Transaction Price Includes recent acquisitions or transactions. (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. The significant unobservable inputs used in the fair value measurement of corporate treasury investments, debt instruments and other investments as of the reporting date are discount rates, default rates, recovery rates, recovery lag, pre-payment pre-payment pre-payment The significant unobservable inputs used in the fair value measurement of equity securities, partnership and limited liability company (“LLC”) interests, debt instruments, assets of consolidated CLO vehicles and loans and receivables are discount rates, exit capitalization rates, exit multiples, EBITDA multiples and revenue compound annual growth rates. Increases (decreases) in any of discount rates and exit capitalization rates in isolation could have resulted in a lower (higher) fair value measurement. Increases (decreases) in any of exit multiples and revenue compound annual growth rates in isolation could have resulted in a higher (lower) fair value measurement. Since December 31, 2017, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments. The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Partnership has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Consolidated Statements of Operations. Level III Financial Assets at Fair Value Year Ended December 31, 2018 2017 Investments Loans and Other Total Investments Loans and Other Total Balance, Beginning of Period $ 1,029,371 $ 239,659 $ 119,642 $ 1,388,672 $ 685,873 $ 211,359 $ 130,588 $ 1,027,820 Transfer In Due to Consolidation and Acquisition 50,043 — — 50,043 34,651 — — 34,651 Transfer Out Due to Deconsolidation (217,182 ) — — (217,182 ) (38,629 ) — — (38,629 ) Transfer In to Level III (b) 190,497 — 8,484 198,981 59,473 — 27,127 86,600 Transfer Out of Level III (b) (127,829 ) — (56,534 ) (184,363 ) (168,986 ) — (22,111 ) (191,097 ) Purchases 862,844 1,016,838 28,041 1,907,723 869,817 856,042 25,335 1,751,194 Sales (457,824 ) (953,538 ) (43,213 ) (1,454,575 ) (473,178 ) (835,426 ) (54,039 ) (1,362,643 ) Settlements — (22,285 ) (73 ) (22,358 ) — (12,584 ) (1,573 ) (14,157 ) Changes in Gains (Losses) Included in Earnings 34,096 23,499 (162 ) 57,433 60,350 20,268 14,315 94,933 Balance, End of Period $ 1,364,016 $ 304,173 $ 56,185 $ 1,724,374 $ 1,029,371 $ 239,659 $ 119,642 $ 1,388,672 Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date $ (4,378 ) $ — $ 2,439 $ (1,939 ) $ 14,083 $ 21,482 $ (91 ) $ 35,474 (a) Represents corporate treasury investments and Other Investments. (b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. There were no Level III financial liabilities as of and for the year ended December 31, 2018 and 2017. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2018 | |
VARIABLE INTEREST ENTITIES | 9. VARIABLE INTEREST ENTITIES Pursuant to GAAP consolidation guidance, the Partnership consolidates certain VIEs for which it is determined that the Partnership is the primary beneficiary either directly or indirectly, through a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance based fees. The investment strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds have similar characteristics, including loss of invested capital and loss of management fees and performance based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers itself the sponsor of the applicable Blackstone Fund. The Partnership does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs other than its own capital commitments. The assets of consolidated variable interest entities may only be used to settle obligations of these entities. In addition, there is no recourse to the Partnership for the consolidated VIEs’ liabilities including the liabilities of the consolidated CLO vehicles. During the twelve months ended December 31, 2018, the Partnership’s ownership interest in certain CLO and other vehicles originated outside of the U.S. was diluted such that the Partnership determined that it was no longer the primary beneficiary of these VIEs and deconsolidated these vehicles. As of the date of deconsolidation, the Partnership’s Total Assets, Total Liabilities and Non-Controlling The Partnership holds variable interests in certain VIEs which are not consolidated as it is determined that the Partnership is not the primary beneficiary. The Partnership’s involvement with such entities is in the form of direct equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets recognized by Blackstone relating to non-consolidated VIEs, and any clawback obligation relating to previously distributed Performance Allocations. The Partnership’s maximum exposure to loss relating to non-consolidated VIEs were as follows: December 31, 2018 2017 Investments $ 942,700 $ 805,501 Accounts Receivable — 15,760 Due from Affiliates 254,744 81,465 Potential Clawback Obligation 159,691 98,331 Maximum Exposure to Loss $ 1,357,135 $ 1,001,057 Amounts Due to Non-Consolidated VIEs $ 207 $ 179 |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
REPURCHASE AGREEMENTS | 10. REPURCHASE AGREEMENTS At December 31, 2018, the Partnership pledged securities with a carrying value of $279.5 million and cash to collateralize its repurchase agreements. Such securities can be repledged, delivered or otherwise used by the counterparty. At December 31, 2017, the Partnership pledged securities with a carrying value of $169.7 million and cash to collateralize its repurchase agreements. Such securities can be repledged, delivered or otherwise used by the counterparty. The following tables provide information regarding the Partnership’s Repurchase Agreements obligation by type of collateral pledged: December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Total Repurchase Agreements Asset-Backed Securities $ — $ 42,908 $ 144,731 $ 34,563 $ 222,202 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 222,202 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 Days 30 - 90 Greater than Total Repurchase Agreements Asset-Backed Securities $ — $ 22,756 $ 96,084 $ — $ 118,840 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 118,840 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — |
OTHER ASSETS AND ACCOUNTS PAYAB
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 11. OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES Other Assets consists of the following: December 31, 2018 2017 Furniture, Equipment and Leasehold Improvements $ 360,571 $ 345,875 Less: Accumulated Depreciation (240,199 ) (219,309 ) Furniture, Equipment and Leasehold Improvements, Net 120,372 126,566 Prepaid Expenses 110,732 78,723 Freestanding Derivatives 44,918 4,443 Other 18,226 32,965 $ 294,248 $ 242,697 Depreciation expense of $23.9 million, $25.2 million and $32.0 million related to furniture, equipment and leasehold improvements for the years ended December 31, 2018, 2017 and 2016, respectively, is included in General, Administrative and Other in the Consolidated Statements of Operations. Accounts Payable, Accrued Expenses and Other Liabilities includes $15.6 million and $27.2 million as of December 31, 2018 and 2017, respectively, relating to redemptions that were legally payable to investors of the consolidated Blackstone Funds and $311.4 million and $1.5 billion, respectively, of payables relating to unsettled purchases. |
OFFSETTING OF ASSETS AND LIABIL
OFFSETTING OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
OFFSETTING OF ASSETS AND LIABILITIES | 12. OFFSETTING OF ASSETS AND LIABILITIES The following tables present the offsetting of assets and liabilities as of December 31, 2018: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 45,416 $ 37,788 $ 5,547 $ 2,081 Gross and Net Financial Gross Amounts Not Offset in the Statement of Financial Condition Financial Cash Collateral Net Liabilities Freestanding Derivatives $ 52,844 $ 35,905 $ 15,377 $ 1,562 Repurchase Agreements 222,202 222,202 — — $ 275,046 $ 258,107 $ 15,377 $ 1,562 (a) Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. The following tables present the offsetting of assets and liabilities as of December 31, 2017: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 8,801 $ 3,279 $ — $ 5,522 Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Liabilities Net Investment Hedges $ 453 $ — $ — $ 453 Freestanding Derivatives 36,234 3,279 32,405 550 Repurchase Agreements 118,840 118,840 — — $ 155,527 $ 122,119 $ 32,405 $ 1,003 Repurchase Agreements are presented separately on the Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Statements of Financial Condition. See Note 11. “Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities” for the components of Other Assets. Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition and are not a significant component thereof. Notional Pooling Arrangement Blackstone has a notional cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of December 31, 2018, the aggregate cash balance on deposit relating to the cash pooling arrangement was $1.4 billion, which was offset with an accompanying overdraft of $1.4 billion. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2018 | |
BORROWINGS | 13. BORROWINGS On September 21, 2018, Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of the Partnership, entered into an amended and restated $1.6 billion revolving credit facility (the “Credit Facility”) with Citibank, N.A., as administrative agent, and the lenders party thereto. The amendment and restatement among other things, increased the amount of available borrowings and extended the maturity date from August 31, 2021 to September 21, 2023. The Partnership borrows and enters into credit agreements for its general operating and investment purposes and certain Blackstone Funds borrow to meet financing needs of their operating and investing activities. Borrowing facilities have been established for the benefit of selected Blackstone Funds. When a Blackstone Fund borrows from the facility in which it participates, the proceeds from the borrowing are strictly limited for its intended use by the borrowing fund and not available for other Partnership purposes. The Partnership’s credit facilities consist of the following: December 31, 2018 2017 Credit Borrowing Weighted Credit Borrowing Weighted Revolving Credit Facility (a) $ 1,600,000 $ — 0.75 % $ 1,500,000 $ 683 0.88 % Blackstone Issued Senior Notes (b) 5.875%, Due 3/15/2021 400,000 400,000 5.88 % 400,000 400,000 5.88 % 4.750%, Due 2/15/2023 400,000 400,000 4.75 % 400,000 400,000 4.75 % 2.000%, Due 5/19/2025 344,010 344,010 2.00 % 360,150 360,150 2.00 % 1.000%, Due 10/5/2026 688,020 688,020 1.00 % 720,300 720,300 1.00 % 3.150%, Due 10/2/2027 300,000 300,000 3.15 % 300,000 300,000 3.15 % 6.250%, Due 8/15/2042 250,000 250,000 6.25 % 250,000 250,000 6.25 % 5.000%, Due 6/15/2044 500,000 500,000 5.00 % 500,000 500,000 5.00 % 4.450%, Due 7/15/2045 350,000 350,000 4.45 % 350,000 350,000 4.45 % 4.000%, Due 10/2/2047 300,000 300,000 4.00 % 300,000 300,000 4.00 % 5,132,030 3,532,030 3.79 % 5,080,450 3,581,133 3.76 % Blackstone Fund Facilities (c) — — — 2,803 2,803 2.79 % CLO Vehicles (d) 6,863,285 6,863,285 4.00 % 11,583,607 11,583,607 2.32 % $ 11,995,315 $ 10,395,315 3.93 % $ 16,666,860 $ 15,167,543 2.54 % (a) The Issuer has a Credit Facility with Citibank, N.A., as Administrative Agent in the amount of $1.6 billion with a maturity date of September 21, 2023. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. The Weighted Average Interest Rate presented here represents the margin above adjusted LIBOR. The margin is subject to change based on Blackstone’s credit rating. 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 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. The Borrowing Outstanding at each date represent outstanding but undrawn letters of credit against the credit facility. (b) The Issuer has issued long term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the “Guarantors”), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer’s 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $136.7 million, $200.4 million and $145.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. (c) Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. (d) Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. The following table presents the general characteristics of each of our Notes, as well as their carrying value and fair value. The Notes are included in Loans Payable within the Consolidated Statements of Financial Condition. All of the Notes were issued at a discount. All of the Notes accrue interest from the Issue Date and all pay interest in arrears on a semi-annual December 31, 2018 2017 Senior Notes Carrying Fair Carrying Fair 5.875%, Due 3/15/2021 $ 398,947 $ 421,720 $ 398,514 $ 438,320 4.750%, Due 2/15/2023 395,166 417,600 394,137 434,200 2.000%, Due 5/19/2025 339,959 352,197 355,425 385,433 1.000%, Due 10/5/2026 679,193 647,564 709,871 711,440 3.150%, Due 10/2/2027 296,717 285,030 296,399 295,320 6.250%, Due 8/15/2042 238,221 289,225 238,019 328,200 5.000%, Due 6/15/2044 488,747 490,150 488,536 574,100 4.450%, Due 7/15/2045 344,038 329,770 343,925 372,575 4.000%, Due 10/2/2047 290,163 262,800 289,989 296,940 $ 3,471,151 $ 3,496,056 $ 3,514,815 $ 3,836,528 (a) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. Included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition are amounts due to holders of debt securities issued by Blackstone’s consolidated CLO vehicles. Borrowings through the consolidated CLO vehicles consisted of the following: December 31, 2018 2017 Borrowing Weighted Weighted Borrowing Weighted Weighted Senior Secured Notes $ 6,531,550 4.20 % 7.5 $ 10,689,240 2.35 % 4.1 Subordinated Notes 331,735 (a ) N/A 894,367 (a ) N/A $ 6,863,285 $ 11,583,607 (a) The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. Senior Secured Notes and Subordinated Notes comprise the following amounts: December 31, 2018 2017 Amounts Due to Non- Amounts Due to Non- Fair Value Borrowing Fair Fair Value Borrowing Fair Senior Secured Notes $ 6,476,434 $ 3,250 $ 3,201 $ 10,595,652 $ 1,000 $ 996 Subordinated Notes 60,289 111,659 52,811 743,554 53,400 40,390 $ 6,536,723 $ 114,909 $ 56,012 $ 11,339,206 $ 54,400 $ 41,386 The Loans Payable of the consolidated CLO vehicles are collateralized by assets held by each respective CLO vehicle and assets of one vehicle may not be used to satisfy the liabilities of another. This collateral consisted of Cash, Corporate Loans, Corporate Bonds and other securities. As of December 31, 2018 and 2017, the fair value of the consolidated CLO assets was $7.1 billion and $13.4 billion, respectively. As part of Blackstone’s borrowing arrangements, the Partnership is subject to certain financial and operating covenants. The Partnership was in compliance with all of its loan covenants as of December 31, 2018. Scheduled principal payments for borrowings at December 31, 2018 are as follows: Operating Blackstone Fund Total Borrowings 2019 $ — $ — $ — 2020 — — — 2021 400,000 — 400,000 2022 — — — 2023 400,000 — 400,000 Thereafter 2,732,030 6,863,285 9,595,315 $ 3,532,030 $ 6,863,285 $ 10,395,315 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAXES | 14. INCOME TAXES The Income Before Provision for Taxes consists of the following: Year Ended December 31, 2018 2017 2016 Income Before Provision for Taxes U.S. Domestic Income $ 3,308,202 $ 3,956,339 $ 2,214,974 Foreign Income 204,739 161,750 166,630 $ 3,512,941 $ 4,118,089 $ 2,381,604 The Provision for Taxes consists of the following: Year Ended December 31, 2018 2017 2016 Current Federal Income Tax $ 73,525 $ 31,457 $ 32,383 Foreign Income Tax 42,128 36,083 17,322 State and Local Income Tax 53,961 40,507 32,572 169,614 108,047 82,277 Deferred Federal Income Tax 59,924 613,518 42,042 Foreign Income Tax (2,518 ) (34 ) 363 State and Local Income Tax 22,370 21,616 7,680 79,776 635,100 50,085 Provision for Taxes $ 249,390 $ 743,147 $ 132,362 The following table summarizes Blackstone’s tax position: Year Ended December 31, 2018 2017 2016 Income Before Provision for Taxes $ 3,512,941 $ 4,118,089 $ 2,381,604 Provision for Taxes $ 249,390 $ 743,147 $ 132,362 Effective Income Tax Rate 7.1 % 18.0 % 5.6 % The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate: Year Ended December 31, 2018 2017 2016 Statutory U.S. Federal Income Tax Rate 21.0 % 35.0 % 35.0 % Income Passed Through to Common Unitholders and Non-Controlling Interest Holders (a) -15.5 % -25.9 % -28.6 % State and Local Income Taxes 1.8 % 1.5 % 1.3 % Equity-Based Compensation — -0.1 % -0.2 % Impact of the Tax Reform Bill — 8.3 % — Other -0.2 % -0.8 % -1.9 % Effective Income Tax Rate 7.1 % 18.0 % 5.6 % (a) Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling interest holders. U.S. federal income tax reform legislation, known as the Tax Cuts and Jobs Act, was signed into law on December 22, 2017 (the “Tax Reform Bill”). In December 2017 the SEC staff issued guidance on accounting for the tax effects of the Tax Reform Bill, which provided that the income tax effects of those aspects of the Tax Reform Bill for which the Partnership’s accounting for income taxes was complete must be reflected in that current period. The Tax Reform Bill reduced the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Consequently, the Partnership recorded a decrease related to the net deferred tax assets of $500.6 million with a corresponding net adjustment to deferred income tax expense of $500.6 million for the year ended December 31, 2017. The remeasurement was partially offset by a $160.3 million tax benefit resulting from the $403.9 million reduction to the liability under the Tax Receivable Agreement resulting from the reduction of the federal income tax rate. The net impact to the 2017 effective tax rate was an 8.3% increase. During the quarter ended December 31, 2018 the Partnership completed its accounting for the income tax effects for the Tax Reform Bill, and no significant adjustments were made to the provisional amounts previously recorded. Further, the Tax Reform Bill includes a one-time deemed repatriation on undistributed foreign earnings and profits (referred to as the transition tax), which was not material to the Partnership. The Tax Reform Bill also established new tax laws that became effective with the tax year beginning January 1, 2018, including, but not limited to, a new provision designed to tax global intangible low-taxed income, a tax determined by base erosion and anti-tax abuse tax benefits from certain payments between a U.S. corporation and foreign subsidiaries and interest expense limitation. The net effect on the 2018 provision for income taxes for these provisions are immaterial. Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows: December 31, 2018 2017 Deferred Tax Assets Fund Management Fees $ 6,955 $ 9,938 Equity-Based Compensation 69,484 54,699 Amortization and Depreciation 768,984 754,924 Net Operating Loss Carry Forward — 8,885 Total Deferred Tax Assets 845,423 828,446 Deferred Tax Liabilities Unrealized Gains from Investments 71,472 65,883 Other 34,469 36,593 Total Deferred Tax Liabilities 105,941 102,476 Net Deferred Tax Assets $ 739,482 $ 725,970 Future realization of tax benefits depends on the expectation of taxable income within a period of time that the tax benefits will reverse. The Partnership has recorded a significant deferred tax asset for the future amortization of tax basis intangibles acquired from the predecessor owners and current owners. The amortization period for these tax basis intangibles is 15 years; accordingly, the related deferred tax assets will reverse over the same period. The Partnership had a taxable loss of $43.2 million and $10.3 million for the years ended December 31, 2015 and 2016, respectively, of which $10.3 million was carried back and utilized against taxable income generated in the tax year ended December 31, 2014. $43.2 million together with the taxable loss of $18.6 million generated for the year ended December 31, 2017 were fully realized in the tax year ended December 31, 2018. The Partnership has no taxable loss carryforward as of December 31, 2018. The Partnership has considered the 15 year amortization period for the tax basis intangibles in evaluating whether it should establish a valuation allowance. In evaluating its ability to utilize deferred tax assets, the Partnership considers projections of taxable income, beginning with historic results and incorporating assumptions of the amount of future pretax operating income. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that the Partnership uses to manage its business. At this time, the Partnership’s projections of future taxable income indicate that it is more likely than not that the benefits from the deferred tax asset will be realized. Therefore, the Partnership has determined that no valuation allowance is needed at December 31, 2018. Currently, the Partnership does not believe it meets the indefinite reversal criteria that would cause the Partnership to not recognize a deferred tax liability with respect to its foreign subsidiaries. Where applicable, Blackstone will record a deferred tax liability for any outside basis difference of an investment in a foreign subsidiary. Blackstone files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, Blackstone is subject to examination by federal and certain state, local and foreign tax regulators. As of December 31, 2018, Blackstone’s U.S. federal income tax returns for the years 2015 through 2017 are open under the normal three-year statute of limitations and therefore subject to examination. State and local tax returns are generally subject to audit from 2014 through 2017. The City of New York is examining certain other subsidiaries’ tax returns for the years 2007 through 2014. The Income Tax Department of the Government of India is examining the tax returns of the Indian subsidiaries for the years 2008 and 2009. HM Revenue and Customs in the U.K. is examining certain U.K. subsidiaries’ tax returns for 2011. Blackstone believes that during 2019 certain tax examinations have a reasonable possibility of being completed and does not expect the results of these examinations to have a material impact on the consolidated financial statements. Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were: December 31, 2018 2017 2016 Unrecognized Tax Benefits — January 1 $ 11,454 $ 3,581 $ 15,698 Additions based on Tax Positions Related to Current Year — — 902 Reductions for Tax Positions of Current Year — — (851 ) Additions for Tax Positions of Prior Years 9,671 11,167 — Reductions for Tax Positions of Prior Years (323 ) (1,860 ) (7,837 ) Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations — — (3,774 ) Settlements — (1,382 ) (357 ) Exchange Rate Fluctuations 62 (52 ) (200 ) Unrecognized Tax Benefits — December 31 $ 20,864 $ 11,454 $ 3,581 If the above tax benefits were recognized, $20.9 million and $11.5 million for the years ended December 31, 2018 and 2017, respectively, would reduce the annual effective rate. Blackstone does not believe that it will have a material increase or decrease in its unrecognized tax benefits during the coming year. The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expense and Other Liabilities in the Consolidated Statements of Financial Condition. Blackstone recognizes interest and penalties accrued related to unrecognized tax positions in General, Administrative and Other Expenses. During the years ended December 31, 2018, 2017 and 2016, $1.8 million, $(0.4) million and $(4.1) million of interest expense were accrued (reversed), respectively. During the years ended December 31, 2018, 2017 and 2016, no penalties were accrued. Other Income — Reduction of the Tax Receivable Agreement Liability In 2017, the $403.9 million Reduction of the Tax Receivable Agreement Liability was primarily attributable to the reduction in the corporate federal tax rate from 35% to 21% pursuant to the Tax Reform Bill. |
NET INCOME PER COMMON UNIT
NET INCOME PER COMMON UNIT | 12 Months Ended |
Dec. 31, 2018 | |
NET INCOME PER COMMON UNIT | 15. NET INCOME PER COMMON UNIT Basic and diluted net income per common unit for the years ended December 31, 2018, 2017 and 2016 was calculated as follows: Year Ended December 31, 2018 2017 2016 Net Income for Per Common Unit Calculations Net Income Attributable to The Blackstone Group L.P., Basic $ 1,541,788 $ 1,471,374 $ 1,039,014 Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units 1,185,799 — 828,102 Net Income Attributable to The Blackstone Group L.P., Diluted $ 2,727,587 $ 1,471,374 $ 1,867,116 Units Outstanding Weighted-Average Common Units Outstanding, Basic 678,850,245 665,453,198 649,475,264 Weighted-Average Unvested Deferred Restricted Common Units 226,487 793,648 1,445,277 Weighted-Average Blackstone Holdings Partnership Units 527,886,114 — 544,194,049 Weighted-Average Common Units Outstanding, Diluted 1,206,962,846 666,246,846 1,195,114,590 Net Income Per Common Unit, Basic $ 2.27 $ 2.21 $ 1.60 Net Income Per Common Unit, Diluted $ 2.26 $ 2.21 $ 1.56 Distributions Declared Per Common Unit (a) $ 2.42 $ 2.32 $ 1.66 (a) Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. In computing the dilutive effect that the exchange of Blackstone Holdings Partnership Units would have on net income per common unit, the Partnership considered that net income available to holders of common units would increase due to the elimination of non-controlling interests in Blackstone Holdings, inclusive of any tax impact. Because the hypothetical conversion may result in a different tax rate, the Blackstone Holdings Partnership Units are considered anti-dilutive in certain periods and dilutive in other periods. The following table summarizes the anti-dilutive securities for the periods indicated: Year Ended December 31, 2018 2017 2016 Weighted-Average Blackstone Holdings Partnership Units — 533,982,613 — Unit Repurchase Program On April 16, 2018, the Board of Directors of our general partner, Blackstone Group Management L.L.C., authorized the repurchase of up to $1.0 billion of Blackstone common units and Blackstone Holdings Partnership Units. Under the unit repurchase program, units may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of units repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The unit repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date. During the years ended December 31, 2017 and 2016, no units were repurchased. During the year ended December 31, 2018, Blackstone repurchased 16.0 million Blackstone common units at a total cost of $541.5 million. As of December 31, 2018, the amount remaining available for repurchases under this program was $458.5 million. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
EQUITY-BASED COMPENSATION | 16. EQUITY-BASED COMPENSATION The Partnership has granted equity-based compensation awards to Blackstone’s senior managing directors, non-partner professionals, non-professionals and selected external advisers under the Partnership’s 2007 Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for the granting of options, unit appreciation rights or other unit-based awards (units, restricted units, restricted common units, deferred restricted common units, phantom restricted common units or other unit-based awards based in whole or in part on the fair value of the Blackstone common units or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January 1, 2018, the Partnership had the ability to grant 172,155,134 units under the Equity Plan. For the years ended December 31, 2018, 2017 and 2016 the Partnership recorded compensation expense of $366.9 million, $338.7 million, and $323.7 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $59.0 million, $47.1 million, and $33.8 million, respectively. As of December 31, 2018, there was $846.5 million of estimated unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of 3.8 years. Total vested and unvested outstanding units, including Blackstone common units, Blackstone Holdings Partnership Units and deferred restricted common units, were 1,196,679,968 as of December 31, 2018. Total outstanding unvested phantom units were 49,155 as of December 31, 2018. A summary of the status of the Partnership’s unvested equity-based awards as of December 31, 2018 and of changes during the period January 1, 2018 through December 31, 2018 is presented below: Blackstone Holdings The Blackstone Group L.P. Equity Settled Awards Cash Settled Awards Unvested Units Partnership Weighted- Deferred Weighted- Phantom Weighted- Balance, December 31, 2017 30,023,189 $ 35.26 9,019,974 $ 30.03 44,196 $ 31.85 Granted 13,011,587 32.80 5,234,541 32.61 9,408 36.87 Vested (9,350,183 ) 34.35 (4,538,236 ) 30.02 (6,796 ) 35.98 Forfeited (2,130,466 ) 37.15 (404,011 ) 30.85 — — Balance, December 31, 2018 31,554,127 $ 34.38 9,312,268 $ 31.43 46,808 $ 34.66 Units Expected to Vest The following unvested units, after expected forfeitures, as of December 31, 2018, are expected to vest: Units Weighted-Average Blackstone Holdings Partnership Units 27,284,548 3.5 Deferred Restricted Blackstone Common Units 8,034,354 2.2 Total Equity-Based Awards 35,318,902 3.2 Phantom Units 38,474 2.5 Deferred Restricted Common Units and Phantom Units The Partnership has granted deferred restricted common units to certain senior and non-senior managing director professionals, analysts and senior finance and administrative personnel and selected external advisers and phantom units (cash settled equity-based awards) to other senior and non-senior managing director employees. Holders of deferred restricted common units and phantom units are not entitled to any voting rights. Only phantom units are to be settled in cash. The fair values of deferred restricted common units have been derived based on the closing price of Blackstone’s common units on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to 5 years. Additionally, the calculation of the compensation expense assumes forfeiture rates based upon historical turnover rates, ranging from 1.0% to 12.5% annually by employee class, and a per unit discount, ranging from $0.50 to $10.88. The phantom units vest over the assumed service period, which ranges from 1 to 5 years. On each such vesting date, Blackstone delivered or will deliver cash to the holder in an amount equal to the number of phantom units held multiplied by the then fair market value of the Blackstone common units on such date. Additionally, the calculation of the compensation expense assumes a forfeiture rate based upon a historical turnover rate of 9.2% annually by employee class. Blackstone is accounting for these cash settled awards as a liability. Blackstone paid $0.2 million, $0.3 million and $0.2 million to non-senior managing director employees in settlement of phantom units for the years ended December 31, 2018, 2017 and 2016, respectively. Blackstone Holdings Partnership Units The Partnership has granted deferred restricted Blackstone Holdings Partners Units to certain newly hired and pre-existing senior managing directors. Holders of deferred restricted Blackstone Holdings Partnership Units are not entitled to any voting rights. The fair values of deferred restricted Blackstone Holdings Partnership Units have been derived based on the closing price of Blackstone’s common units on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to 7 years. Additionally, the calculation of the compensation expense assumes forfeiture rates ranging from 6.6% to 9.2%, based on historical experience. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS Affiliate Receivables and Payables Due from Affiliates and Due to Affiliates consisted of the following: December 31, 2018 2017 Due from Affiliates Management Fees, Performance Revenues, Reimbursable Expenses and other receivables from Non-Consolidated Entities and Portfolio Companies $ 1,520,100 $ 1,616,148 Due From Certain Non-Controlling Interest Holders and Blackstone Employees 462,475 410,877 Accrual for Potential Clawback of Previously Distributed Performance Allocations 11,548 1,112 $ 1,994,123 $ 2,028,137 December 31, 2018 2017 Due to Affiliates Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements $ 796,902 $ 715,734 Due to Non-Consolidated Entities 99,728 90,038 Due to Note-Holders of Consolidated CLO Vehicles 56,012 41,386 Due to Certain Non-Controlling Interest Holders and Blackstone Employees 53,613 87,829 Accrual for Potential Repayment of Previously Received Performance Allocations 29,521 2,171 $ 1,035,776 $ 937,158 Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance allocation or incentive fee arrangements. As of December 31, 2018 and 2017, such investments aggregated $842.9 million and $813.2 million, respectively. Their share of the Net Income Attributable to Redeemable Non-Controlling and Non-Controlling Interests in Consolidated Entities aggregated $63.6 million, $113.9 million and $79.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Loans to Affiliates Loans to affiliates consist of interest bearing advances to certain Blackstone individuals to finance their investments in certain Blackstone Funds. These loans earn interest at Blackstone’s cost of borrowing and such interest totaled $5.4 million, $3.4 million and $1.4 million for the years ended December 31, 2018, 2017 and 2016, respectively. Contingent Repayment Guarantee Blackstone and its personnel who have received Performance Allocation distributions have guaranteed payment on a several basis (subject to a cap) to the carry funds of any clawback obligation with respect to the excess Performance Allocation allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Allocations represents amounts previously paid to Blackstone Holdings and non-controlling interest holders that would need to be repaid to the Blackstone Funds if the carry funds were to be liquidated based on the fair value of their underlying investments as of December 31, 2018. See Note 18. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)”. Aircraft and Other Services In the normal course of business, Blackstone personnel make use of aircraft owned as personal assets by Stephen A. Schwarzman; an aircraft owned jointly as a personal asset by Hamilton E. James, Blackstone’s Executive Vice Chairman and a Director of Blackstone, and another senior managing director; an aircraft owned as a personal asset by Jonathan D. Gray, Blackstone’s President and Chief Operating Officer and a Director of Blackstone; and an aircraft owned jointly as a personal asset by Bennett J. Goodman, Co-Founder of GSO Capital and a Director of Blackstone, and a former senior managing director (each such aircraft, “Personal Aircraft”). Mr. Schwarzman paid for his purchases of his Personal Aircraft himself. Mr. James paid for his interest in his jointly owned Personal Aircraft. Mr. Goodman paid for his interest in his jointly owned Personal Aircraft. Mr. Gray paid for his purchase of his Personal Aircraft himself. Mr. Schwarzman, Mr. James, Mr. Goodman and Mr. Gray respectively bear operating, personnel and maintenance costs associated with the operation of such Personal Aircraft. Payment by Blackstone for the use of the Personal Aircraft by Blackstone employees is made based on market rates. In addition, on occasion, certain of Blackstone’s executive officers and employee directors and their families may make personal use of aircraft in which Blackstone owns a fractional interest, as well as other assets of Blackstone. Any such personal use of Blackstone assets is charged to the executive officer or employee director based on market rates and usage. Personal use of Blackstone resources is also reimbursed to Blackstone based on market rates. The transactions described herein are not material to the Consolidated Financial Statements. Tax Receivable Agreements Blackstone used a portion of the proceeds from the IPO and the sale of non-voting common units to Beijing Wonderful Investments to purchase interests in the predecessor businesses from the predecessor owners. In addition, holders of Blackstone Holdings Partnership Units may exchange their Blackstone Holdings Partnership Units for Blackstone common units on a one-for-one basis. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Blackstone Holdings and therefore reduce the amount of tax that Blackstone’s wholly owned subsidiaries would otherwise be required to pay in the future. One of the subsidiaries of the Partnership which is a corporate taxpayer has entered into tax receivable agreements with each of the predecessor owners and additional tax receivable agreements have been executed, and will continue to be executed, with newly-admitted senior managing directors and others who acquire Blackstone Holdings Partnership Units. The agreements provide for the payment by the corporate taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements. As a result of the Tax Reform Bill, there was a reduction of $403.9 million of the tax receivable agreement liability due to the pre-IPO owners and others mentioned above. Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will aggregate $796.9 million over the next 15 years. The after-tax net present value of these estimated payments totals $309.2 million assuming a 15% discount rate and using Blackstone’s most recent projections relating to the estimated timing of the benefit to be received. Future payments under the tax receivable agreements in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreements are not conditioned upon continued ownership of Blackstone equity interests by the pre-IPO owners and the others mentioned above. Subsequent to December 31, 2018, payments totaling $87.3 million were made to certain pre-IPO owners and others mentioned above in accordance with the tax receivable agreement and related to tax benefits the Partnership received for the 2016 and 2017 taxable years. Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to Blackstone common units, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the balance sheet date, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Acquisition of Ownership Interests from Non-Controlling Interest Holders in the Supplemental Disclosure of Non-Cash Investing and Financing Activities in the Consolidated Statements of Cash Flows. Other Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis. Additionally, please see Note 18. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a lending institution for certain loans held by employees. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Commitments Operating Leases The Partnership enters into non-cancelable lease and sublease agreements primarily for office space, which expire on various dates through 2030. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord, and are recognized on a straight-line basis over the term of the lease agreement. Rent expense includes base contractual rent and variable costs such as building expenses, utilities, taxes and insurance. Rent expense for the years ended December 31, 2018, 2017 and 2016, was $109.9 million, $104.7 million and $97.2 million, respectively. At December 31, 2018 and 2017, the Partnership maintained irrevocable standby letters of credit and cash deposits as security for the leases of $7.9 million and $8.9 million, respectively. As of December 31, 2018, the aggregate minimum future payments, net of sublease income, required on the operating leases are as follows: 2019 $ 78,506 2020 72,191 2021 80,914 2022 79,094 2023 77,248 Thereafter 273,347 Total $ 661,300 Investment Commitments Blackstone had $2.6 billion of investment commitments as of December 31, 2018 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. The consolidated Blackstone Funds had signed investment commitments of $94.5 million as of December 31, 2018 which includes $24.9 million of signed investment commitments for portfolio company acquisitions in the process of closing. Regulated Entities Certain U.S. and non-U.S. entities are subject to various investment adviser and other financial regulatory rules and requirements that may include minimum net capital requirements. These entities have continuously operated in excess of these requirements. This includes a number of U.S. entities that are registered as investment advisers with the SEC. These regulatory capital requirements may restrict the Partnership’s ability to withdraw capital from its entities. At December 31, 2018, $39.4 million of net assets of consolidated entities may be restricted as to the payment of cash dividends and advances to the Partnership. Contingencies Guarantees Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the on-going business activities and/or acquisitions of their Portfolio Companies. There is no direct recourse to the Partnership to fulfill such obligations. To the extent that underlying funds are required to fulfill guarantee obligations, the Partnership’s invested capital in such funds is at risk. Total investments at risk in respect of guarantees extended by consolidated real estate funds was $31.3 million as of December 31, 2018. The Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone Funds or for members’ capital contributions to Blackstone Group International Partners LLP. The amount guaranteed as of December 31, 2018 was $198.3 million. Litigation Blackstone may from time to time be involved in litigation and claims incidental to the conduct of its business. Blackstone’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against the Partnership. Blackstone accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, Blackstone does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows. In December 2017, a purported derivative suit ( Mayberry v. KKR & Co., L.P., et al. The plaintiffs filed an amended complaint in January 2018. In November 2018, the Circuit Court granted one defendant’s motion to dismiss and denied all other defendants’ motions to dismiss, including those of the Blackstone Defendants. In January 2019, certain of the KRS trustee and officer defendants noticed appeals from the denial of the motions to dismiss to the Kentucky Court of Appeals, and also filed a motion to stay the Mayberry proceedings in Circuit Court pending the outcome of those appeals. In addition, several defendants, including Blackstone and BAAM L.P., filed petitions in the Kentucky Court of Appeals for a writ of prohibition against the ongoing Mayberry proceedings on the ground that the plaintiffs lack standing. Blackstone believes that this suit is totally without merit and intends to defend it vigorously. Contingent Obligations (Clawback) Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. The lives of the carry funds, including available contemplated extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at various points through 2028. Further extensions of such terms may be implemented under given circumstances. For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of some of the carry funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Performance Allocation distributions with respect to such fund’s realized investments. The following table presents the clawback obligations by segment: December 31, 2018 2017 Segment Blackstone Current and Total Blackstone Current and Total Real Estate $ 15,770 $ 10,053 $ 25,823 $ — $ — $ — Private Equity 13,296 (12,448 ) 848 — — — Credit 1,355 1,495 2,850 1,059 1,112 2,171 $ 30,421 $ (900 ) $ 29,521 $ 1,059 $ 1,112 $ 2,171 (a) The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. For Private Equity, Real Estate, and certain Credit Funds, a portion of the Performance Allocations paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the Consolidated Financial Statements of the Partnership, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At December 31, 2018, $675.3 million was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required. In the Credit segment, payment of Performance Allocations to the Partnership by the majority of the stressed/distressed, mezzanine and credit alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated accounts in the event of a cash clawback obligation. If, at December 31, 2018, all of the investments held by our carry funds were deemed worthless, a possibility that management views as remote, the amount of Performance Allocations subject to potential clawback would be $7.0 billion, on an after tax basis where applicable, of which Blackstone Holdings is potentially liable for $6.4 billion if current and former Blackstone personnel default on their share of the liability, a possibility that management also views as remote. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING | 19. SEGMENT REPORTING Blackstone transacts its primary business in the United States and substantially all of its revenues are generated domestically. Blackstone conducts its alternative asset management businesses through four segments: • Real Estate — Blackstone’s Real Estate segment primarily comprises its management of global, Europe and Asia-focused opportunistic real estate funds, high yield real estate debt funds, liquid real estate debt funds, core+ real estate funds, a NYSE-listed REIT and a non-exchange traded REIT. • Private Equity — Blackstone’s Private Equity segment primarily comprises its management of flagship corporate private equity funds, sector and geographically-focused corporate private equity funds, including energy and Asia-focused funds, a core private equity fund, an opportunistic investment platform, a secondary fund of funds business, infrastructure-focused funds, a life sciences private investment platform, a multi-asset investment program for eligible high net worth investors and a capital markets services business. • Hedge Fund Solutions — The largest component of Blackstone’s Hedge Fund Solutions segment is Blackstone Alternative Asset Management, which manages a broad range of commingled and customized hedge fund of fund solutions. The segment also includes investment platforms that seed new hedge fund businesses, purchase minority ownership interests in more established hedge funds, invest in special situation opportunities, create alternative solutions in the form of mutual funds and UCITS and trade directly. • Credit — Blackstone’s Credit segment consists principally of GSO Capital Partners LP, which is organized into performing credit strategies (which include mezzanine lending funds, middle market direct lending funds and other performing credit strategy funds), distressed strategies (which include credit alpha strategies, stressed/distressed funds and energy strategies) and long only strategies (which consist of CLOs, closed end funds, open end funds and separately managed accounts). In addition, the segment includes a publicly traded master limited partnership investment platform, Harvest, and our insurer-focused platform, Blackstone Insurance Solutions. These business segments are differentiated by their various investment strategies. The Real Estate, Private Equity, Hedge Fund Solutions and Credit segments primarily earn their income from management fees and investment returns on assets under management. Effective as of and for the three months ended December 31, 2018, Blackstone senior management determined that Segment Distributable Earnings, and not Economic Income, is the measure that it uses to assess the performance of its business segments. Segment Distributable Earnings is used by management to make operating decisions, allocate resources and determine the compensation of employees across all of its business segments. All prior periods have been recast to reflect these updates. Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. 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 Charges. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures and Blackstone’s initial public offering. 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 and any gains or losses associated with these corporate actions. For segment reporting purposes, Distributable Earnings is presented along with its major components, Fee Related Earnings and Net Realizations. Fee Related Earnings is 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. Net Realizations is the sum of Realized Principal Investment Income and Realized Performance Revenues less Realized Performance Compensation. Performance Allocations and Incentive Fees are presented together and referred to collectively as Performance Revenues or Performance Compensation. Segment Presentation The following tables present the financial data for Blackstone’s four segments as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016. December 31, 2018 and the Twelve Months Then Ended Real Estate Private Hedge Fund Credit Total Management and Advisory Fees, Net Base Management Fees $ 985,399 $ 785,223 $ 519,782 $ 553,921 $ 2,844,325 Transaction, Advisory and Other Fees, Net 152,513 58,165 3,180 15,640 229,498 Management Fee Offsets (11,442 ) (13,504 ) (93 ) (12,332 ) (37,371 ) Total Management and Advisory Fees, Net 1,126,470 829,884 522,869 557,229 3,036,452 Fee Related Performance Revenues 124,502 — — (666 ) 123,836 Fee Related Compensation (459,430 ) (375,446 ) (162,172 ) (219,098 ) (1,216,146 ) Other Operating Expenses (146,260 ) (133,096 ) (77,772 ) (131,200 ) (488,328 ) Fee Related Earnings 645,282 321,342 282,925 206,265 1,455,814 Realized Performance Revenues 914,984 757,406 42,419 96,962 1,811,771 Realized Performance Compensation (284,319 ) (318,167 ) (21,792 ) (53,863 ) (678,141 ) Realized Principal Investment Income 92,525 109,731 17,039 16,763 236,058 Total Net Realizations 723,190 548,970 37,666 59,862 1,369,688 Total Segment Distributable Earnings $ 1,368,472 $ 870,312 $ 320,591 $ 266,127 $ 2,825,502 Segment Assets $ 7,521,117 $ 7,548,544 $ 1,976,809 $ 3,592,356 $ 20,638,826 December 31, 2017 and the Twelve Months Then Ended Real Estate Private Hedge Fund Credit Total Management and Advisory Fees, Net Base Management Fees $ 872,191 $ 724,818 $ 516,048 $ 567,334 $ 2,680,391 Transaction, Advisory and Other Fees, Net 82,781 57,624 2,980 13,431 156,816 Management Fee Offsets (15,934 ) (18,007 ) (93 ) (32,382 ) (66,416 ) Total Management and Advisory Fees, Net 939,038 764,435 518,935 548,383 2,770,791 Fee Related Performance Revenues 79,500 — — 89,945 169,445 Fee Related Compensation (437,311 ) (347,562 ) (146,924 ) (253,842 ) (1,185,639 ) Other Operating Expenses (136,042 ) (120,997 ) (68,265 ) (99,562 ) (424,866 ) Fee Related Earnings 445,185 295,876 303,746 284,924 1,329,731 Realized Performance Revenues 2,141,374 1,157,188 154,343 194,902 3,647,807 Realized Performance Compensation (751,526 ) (404,544 ) (40,707 ) (100,834 ) (1,297,611 ) Realized Principal Investment Income 255,903 154,837 9,074 16,380 436,194 Total Net Realizations 1,645,751 907,481 122,710 110,448 2,786,390 Total Segment Distributable Earnings $ 2,090,936 $ 1,203,357 $ 426,456 $ 395,372 $ 4,116,121 Segment Assets $ 7,585,002 $ 6,369,491 $ 2,107,441 $ 3,926,286 $ 19,988,220 Twelve Months Ended December 31, 2016 Real Estate Private Hedge Fund Credit Total Management and Advisory Fees, Net Base Management Fees $ 795,161 $ 555,593 $ 521,736 $ 525,289 $ 2,397,779 Transaction, Advisory and Other Fees, Net 95,324 39,283 1,061 9,190 144,858 Management Fee Offsets (7,322 ) (34,810 ) — (37,512 ) (79,644 ) Total Management and Advisory Fees, Net 883,163 560,066 522,797 496,967 2,462,993 Fee Related Performance Revenues 18,178 — — 83,252 101,430 Fee Related Compensation (379,331 ) (298,149 ) (153,645 ) (223,313 ) (1,054,438 ) Other Operating Expenses (137,581 ) (130,685 ) (75,870 ) (87,700 ) (431,836 ) Fee Related Earnings 384,429 131,232 293,282 269,206 1,078,149 Realized Performance Revenues 1,214,931 245,268 42,177 43,210 1,545,586 Realized Performance Compensation (335,147 ) (110,882 ) (15,029 ) (22,199 ) (483,257 ) Realized Principal Investment Income (Loss) 122,712 73,377 (7,224 ) 11,004 199,869 Total Net Realizations 1,002,496 207,763 19,924 32,015 1,262,198 Total Segment Distributable Earnings $ 1,386,925 $ 338,995 $ 313,206 $ 301,221 $ 2,340,347 Reconciliations of Total Segment Amounts The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the years ended December 31, 2018, 2017 and 2016 along with Total Assets as of December 31, 2018 and 2017: Year Ended December 31, 2018 2017 2016 Revenues Total GAAP Revenues $ 6,833,259 $ 7,145,015 $ 5,146,299 Less: Unrealized Performance Allocations (a) (561,163 ) 105,432 (530,120 ) Less: Unrealized Principal Investment (Income) Loss (b) 65,851 131,206 (20,421 ) Less: Interest and Dividend Revenue (c) (181,763 ) (142,920 ) (96,399 ) Less: Other Revenue (d) (89,468 ) 140,051 (54,712 ) Impact of Consolidation (e) (277,406 ) (322,729 ) (117,965 ) Amortization of Intangibles (f) 1,548 1,548 1,548 Transaction-Related Charges (g) (588,710 ) (40,153 ) (20,635 ) Intersegment Eliminations 5,969 6,787 2,283 Total Segment Revenue (h) $ 5,208,117 $ 7,024,237 $ 4,309,878 Year Ended December 31, 2018 2017 2016 Expenses Total GAAP Expenses $ 3,512,040 $ 3,752,378 $ 2,949,445 Less: Unrealized Performance Allocations Compensation (i) (319,742 ) (103,794 ) (333,528 ) Less: Equity Based Compensation (j) (158,220 ) (107,110 ) (79,571 ) Less: Interest Expense (k) (159,838 ) (192,838 ) (148,022 ) Impact of Consolidation (e) (112,354 ) (133,081 ) (52,586 ) Amortization of Intangibles (f) (58,446 ) (46,749 ) (82,918 ) Transaction-Related Charges (g) (326,794 ) (267,477 ) (285,572 ) Intersegment Eliminations 5,969 6,787 2,283 Total Segment Expenses (l) $ 2,382,615 $ 2,908,116 $ 1,969,531 Year Ended December 31, 2018 2017 2016 Other Income Total GAAP Other Income $ 191,722 $ 725,452 $ 184,750 Impact of Consolidation (e) (191,722 ) (321,597 ) (184,750 ) Transaction-Related Charges (g) — (403,855 ) — Total Segment Other Income $ — $ — $ — Year Ended December 31, 2018 2017 2016 Income Before Provision for Taxes Total GAAP Income Before Provision for Taxes $ 3,512,941 $ 4,118,089 $ 2,381,604 Less: Unrealized Performance Allocations (a) (561,163 ) 105,432 (530,120 ) Less: Unrealized Principal Investment (Income) Loss (b) 65,851 131,206 (20,421 ) Less: Interest and Dividend Revenue (c) (181,763 ) (142,920 ) (96,399 ) Less: Other Revenue (d) (89,468 ) 140,051 (54,712 ) Plus: Unrealized Performance Allocations Compensation (i) 319,742 103,794 333,528 Plus: Equity Based Compensation (j) 158,220 107,110 79,571 Plus: Interest Expense (k) 159,838 192,838 148,022 Impact of Consolidation (e) (356,774 ) (511,245 ) (250,129 ) Amortization of Intangibles (f) 59,994 48,297 84,466 Transaction-Related Charges (g) (261,916 ) (176,531 ) 264,937 Total Segment Distributable Earnings $ 2,825,502 $ 4,116,121 $ 2,340,347 Year Ended December 31, 2018 2017 Total Assets Total GAAP Assets $ 28,924,650 $ 34,415,919 Impact of Consolidation (e) (8,285,824 ) (14,427,699 ) Total Segment Assets $ 20,638,826 $ 19,988,220 Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges. (a) This adjustment removes Unrealized Performance Revenues on a segment basis. (b) This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. (c) This adjustment removes Interest and Dividend Revenue on a segment basis. (d) This adjustment removes Other Revenue on a segment basis. (e) The Impact of Consolidation adjustment represents the effect of consolidating Blackstone Funds, the elimination of Blackstone’s interest in these funds, the increase to revenue representing the reimbursement of certain expenses by Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the segment presentation, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. (f) Amortization of intangibles consists of the amortization of transaction-related intangibles including intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method. (g) Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. 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 and any gains or losses associated with these corporate actions. For the year ended December 31, 2018, Transaction-Related Charges included $580.9 million of Other Revenues received upon the conclusion of Blackstone’s investment sub-advisory relationship with FS Investments’ funds. (h) Total Segment Revenues is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Management and Advisory Fees, Net $ 3,036,452 $ 2,770,791 $ 2,462,993 Total Segment Fee Related Performance Revenues 123,836 169,445 101,430 Total Segment Realized Performance Revenues 1,811,771 3,647,807 1,545,586 Total Segment Realized Principal Investment Income 236,058 436,194 199,869 Total Segment Revenues $ 5,208,117 $ 7,024,237 $ 4,309,878 (i) This adjustment removes Unrealized Performance Allocations Compensation. (j) This adjustment removes Equity-Based Compensation on a segment basis. (k) This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. (l) Total Segment Expenses is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Fee Related Compensation $ 1,216,146 $ 1,185,639 $ 1,054,438 Total Segment Realized Performance Compensation 678,141 1,297,611 483,257 Total Segment Other Operating Expenses 488,328 424,866 431,836 Total Segment Expenses $ 2,382,615 $ 2,908,116 $ 1,969,531 Reconciliations of Total Segment Components The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Consolidated Statement of Operations for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Management and Advisory Fees, Net GAAP $ 3,027,796 $ 2,751,322 $ 2,464,290 Segment Adjustment (a) 8,656 19,469 (1,297 ) Total Segment $ 3,036,452 $ 2,770,791 $ 2,462,993 Year Ended December 31, 2018 2017 2016 GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues GAAP Incentive Fees $ 57,540 $ 242,514 $ 149,928 Investment Income — Realized Performance Allocations 1,876,507 3,571,811 1,495,439 GAAP 1,934,047 3,814,325 1,645,367 Total Segment Less: Realized Performance Revenues (1,811,771 ) (3,647,807 ) (1,545,586 ) Segment Adjustment (b) 1,560 2,927 1,649 Total Segment $ 123,836 $ 169,445 $ 101,430 Year Ended December 31, 2018 2017 2016 GAAP Compensation to Total Segment Fee Related Compensation GAAP Compensation $ 1,609,957 $ 1,442,485 $ 1,335,408 Incentive Fee Compensation 33,916 105,279 68,921 Realized Performance Allocations Compensation 711,076 1,281,965 465,129 GAAP 2,354,949 2,829,729 1,869,458 Total Segment Less: Realized Performance Compensation (678,141 ) (1,297,611 ) (483,257 ) Less: Equity-Based Compensation (158,220 ) (107,110 ) (79,571 ) Segment Adjustment (c) (302,442 ) (239,369 ) (252,192 ) Total Segment $ 1,216,146 $ 1,185,639 $ 1,054,438 Year Ended December 31, 2018 2017 2016 GAAP General, Administrative and Other to Total Segment Other Operating Expenses GAAP $ 594,873 $ 488,582 $ 541,624 Segment Adjustment (d) (106,545 ) (63,716 ) (109,788 ) Total Segment $ 488,328 $ 424,866 $ 431,836 Year Ended December 31, 2018 2017 2016 Realized Performance Revenues GAAP Incentive Fees $ 57,540 $ 242,514 $ 149,928 Investment Income — Realized Performance Allocations 1,876,507 3,571,811 1,495,439 GAAP 1,934,047 3,814,325 1,645,367 Total Segment Less: Fee Related Performance Revenues (123,836 ) (169,445 ) (101,430 ) Segment Adjustment (b) 1,560 2,927 1,649 Total Segment $ 1,811,771 $ 3,647,807 $ 1,545,586 Year Ended December 31, 2018 2017 2016 Realized Performance Compensation GAAP Incentive Fee Compensation $ 33,916 $ 105,279 $ 68,921 Realized Performance Allocations Compensation 711,076 1,281,965 465,129 GAAP 744,992 1,387,244 534,050 Total Segment Less: Fee Related Performance Compensation (53,844 ) (75,933 ) (44,969 ) Less: Equity-based compensation — Performance Compensation Related (13,007 ) (13,700 ) (5,824 ) Total Segment $ 678,141 $ 1,297,611 $ 483,257 Year Ended December 31, 2018 2017 2016 Realized Principal Investment Income GAAP $ 415,862 $ 635,769 $ 278,737 Segment Adjustment (e) (179,804 ) (199,575 ) (78,868 ) Total Segment $ 236,058 $ 436,194 $ 199,869 Year Ended December 31, 2018 2017 2016 GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest Income GAAP Interest and Dividend Revenue $ 171,947 $ 139,696 $ 95,724 Interest Expense (163,990 ) (197,486 ) (152,654 ) GAAP 7,957 (57,790 ) (56,930 ) Segment Adjustment (f) 13,968 7,872 5,307 Total Segment $ 21,925 $ (49,918 ) $ (51,623 ) Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges. (a) Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total Segment measures. (b) Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. (c) Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures. (d) Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total Segment measures. (e) 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. (f) Represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS There have been no events since December 31, 2018 that require recognition or disclosure in the Consolidated Financial Statements. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 21. QUARTERLY FINANCIAL DATA (UNAUDITED) Three Months Ended March 31, June 30, September 30, December 31, Revenues $ 1,769,131 $ 2,632,570 $ 1,926,580 $ 504,978 Expenses 982,931 1,016,381 1,017,632 495,096 Other Income (Loss) 110,599 73,519 66,838 (59,234 ) Income (Loss) Before Provision for Taxes $ 896,799 $ 1,689,708 $ 975,786 $ (49,352 ) Net Income (Loss) $ 842,304 $ 1,550,977 $ 948,988 $ (78,718 ) Net Income (Loss) Attributable to The Blackstone Group L.P. $ 367,872 $ 742,042 $ 442,742 $ (10,868 ) Net Income (Loss) Per Common Unit Common Units, Basic $ 0.55 $ 1.09 $ 0.65 $ (0.02 ) Common Units, Diluted $ 0.53 $ 1.09 $ 0.64 $ (0.02 ) Distributions Declared (c) $ 0.85 $ 0.35 $ 0.58 $ 0.64 Three Months Ended March 31, June 30, September 30, December 31, Revenues $ 1,914,718 $ 1,535,726 $ 1,735,358 $ 1,959,213 Expenses 921,773 881,193 904,511 1,044,901 Other Income 66,132 110,054 63,448 485,818 Income Before Provision for Taxes $ 1,059,077 $ 764,587 $ 894,295 $ 1,400,130 Net Income $ 1,001,640 $ 734,979 $ 834,783 $ 803,540 Net Income Attributable to The Blackstone Group L.P. $ 451,909 $ 337,407 $ 377,920 $ 304,138 Net Income Per Common Unit Common Units, Basic $ 0.68 $ 0.51 $ 0.57 $ 0.45 Common Units, Diluted $ 0.68 $ 0.50 $ 0.55 $ 0.45 Distributions Declared (c) $ 0.47 $ 0.87 $ 0.54 $ 0.44 (a) Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. “Summary of Significant Accounting Policies — Recent Accounting Developments” (b) For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone’s investment sub-advisory relationship with FS Investments’ funds. (c) Distributions declared reflects the calendar date of the declaration of each distribution. (d) The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. “Income Taxes”. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Partnership have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Partnership, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which the Partnership is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is presumed to have control. All intercompany balances and transactions have been eliminated in consolidation. Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Consolidated Statements of Cash Flows. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable. Such estimates include those used in the valuation of investments and financial instruments and the accounting for Goodwill and equity-based compensation. Actual results could differ from those estimates and such differences could be material. |
Consolidation | Consolidation The Partnership consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. The Partnership has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive kick out rights or participating rights that would overcome the control held by the Partnership. Accordingly, the Partnership consolidates Blackstone Holdings and records non-controlling In addition, the Partnership consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a VIE and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. The Partnership determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether the Partnership is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by the Partnership. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Partnership is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Partnership, affiliates of the Partnership or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, the Partnership assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition. Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. |
Revenue Recognition | Revenue Recognition Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other. Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 19. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers. Investment Income represents the unrealized and realized gains and losses on the Partnership’s Performance Allocations and Principal Investments. Interest and Dividend Revenue comprises primarily interest and dividend income earned on principal investments held by the Partnership. Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars. Management and Advisory Fees, Net The Partnership earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital. These customer contracts require the Partnership to provide investment management services, which represents a performance obligation that the Partnership satisfies over time. Management fees are a form of variable consideration because the fees the Partnership is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid. Transaction, advisory and other fees (including monitoring fees) are principally fees charged to the limited partners of funds indirectly through the managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to the Partnership (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to the Partnership by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for the Partnership’s performance obligation to provide investment management services to the limited partners of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed. Management fee offsets are reductions to management fees payable by the limited partners of the Blackstone Funds, which are based on the amount such limited partners reimburse the Blackstone Funds or the Partnership primarily for placement fees. Providing investment management services requires the Partnership to arrange for services on behalf of its customers. In those situations where the Partnership is acting as an agent on behalf of the limited partners of funds, it presents the cost of services as net against management fee revenue. In all other situations, the Partnership is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented gross as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the limited partners of the funds recorded as Management and Advisory Fees, Net. Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Consolidated Statements of Financial Condition. Incentive Fees — Investment Income (Loss) In certain fund structures across private equity, real estate, hedge fund solutions and credit-focused funds (“carry funds”), Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its pro-rata “pro-rata pro-rata Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, the Partnership calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to the Partnership 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. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Consolidated Statements of Financial Condition. Performance Allocations are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling Principal Investments include the unrealized and realized gains and losses on the Partnership’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive pro-rata Interest and Dividend Revenue Other Revenue |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. The Partnership does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. • Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter • Level III — Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment over-the-counter In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including certain corporate loans and bonds held by Blackstone’s consolidated CLO vehicles and debt securities sold, not yet purchased. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: • Debt Instruments 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. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. • Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. • Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. Level III Valuation Techniques In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance Private Equity Investments Real Estate Investments Credit-Focused Investments The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring. |
Investments, at Fair Value | Investments, at Fair Value The Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss). For certain instruments, the Partnership has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. The Partnership has applied the fair value option for certain loans and receivables and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. The Partnership has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, the Partnership measures the liabilities of consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any non-financial Non-Controlling non-consolidated The Partnership has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option”. The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, the Partnership may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, the Partnership will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, Security and loan transactions are recorded on a trade date basis. |
Equity Method Investments | Equity Method Investments Investments in which the Partnership is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. The Partnership has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which include both a proportionate and disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, the Partnership’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations. In cases where the Partnership’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), the Partnership’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 the Partnership calculates the Accrued Performance Allocations that would be due to the Partnership 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. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations. |
Cash Held by Blackstone Funds and Other | Cash Held by Blackstone Funds and Other Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone. |
Accounts Receivable | Accounts Receivable Accounts Receivable includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectability. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations. |
Intangibles and Goodwill | Intangibles and Goodwill Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Performance Allocations. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from three to twenty years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the Consolidated Statements of Operations. The Partnership does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill comprises goodwill arising from the contribution and reorganization of the Partnership’s predecessor entities in 2007 immediately prior to its IPO and the acquisitions of GSO in 2008, Strategic Partners in 2013, Harvest Fund Advisors LLC (“Harvest”) in 2017 and Clarus Ventures LLC (“Clarus”) in 2018. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segment is the reporting level for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, a two-step |
Furniture, Equipment and Leasehold Improvements | Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and three to seven years for other fixed assets. The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Foreign Currency | Foreign Currency In the normal course of business, the Partnership may enter into transactions not denominated in United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, the Partnership consolidates a number of entities that have a non-U.S. Non-U.S. non-U.S. Non-Controlling Non-Controlling |
Comprehensive Income | Comprehensive Incom Comprehensive Income consists of Net Income and Other Comprehensive Income. The Partnership’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments. |
Non-Controlling Interests in Consolidated Entities | Non-Controlling Non-Controlling non-controlling non-controlling |
Redeemable Non-Controlling Interests in Consolidated Entities | Redeemable Non-Controlling Non-controlling Non-Controlling non-controlling Non-Controlling |
Non-Controlling Interests in Blackstone Holdings | Non-Controlling Non-Controlling Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling |
Compensation and Benefits | Compensation and Benefits Compensation and Benefits Compensation Compensation and Benefits — Incentive Fee Compensation — Compensation and Benefits — Performance Allocations Compensation — in-kind). |
Other Income | Other Income Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments. Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations. Other Income also includes amounts attributable to the Reduction of the Tax Receivable Agreement Liability. See Note 14. “Income Taxes — Other Income — Reduction of the Tax Receivable Agreement Liability” for additional information. |
Income Taxes | Income Taxes The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in non-U.S. non-U.S. Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. Blackstone uses the flow-through method to account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense. Blackstone analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Blackstone records unrecognized tax benefits on the basis of a two-step |
Net Income (Loss) Per Common Unit | Net Income (Loss) Per Common Unit Basic Income (Loss) Per Common Unit is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group L.P. by the weighted-average number of common units, unvested participating common units outstanding for the period and vested deferred restricted common units that have been earned for which issuance of the related common units is deferred until future periods. Diluted Income (Loss) Per Common Unit reflects the assumed conversion of all dilutive securities. Diluted Income (Loss) Per Common Unit excludes the anti-dilutive effect of Blackstone Holdings Partnership Units and deferred restricted common units, as applicable. The Partnership applies the treasury stock method to determine the dilutive weighted-average common units outstanding. The Partnership applies the “if-converted” |
Repurchase Agreements | Repurchase Agreements Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. The Partnership manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Partnership, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. The Partnership takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. The Partnership also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. Additional disclosures relating to repurchase agreements are discussed in Note 10. “Repurchase Agreements”. Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. |
Securities Sold, Not Yet Purchased | Securities Sold, Not Yet Purchased Securities Sold, Not Yet Purchased consist of equity and debt securities that the Partnership has borrowed and sold. The Partnership is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. The Partnership is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. Securities Sold, Not Yet Purchased are recorded at fair value in the Consolidated Statements of Financial Condition. |
Derivative Instruments | Derivative Instruments The Partnership recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date the Partnership enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). For a fair value hedge, Blackstone records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in current period earnings in General, Administrative and Other in the Consolidated Statements of Operations. Changes in the fair value of derivatives designated as hedging instruments caused by factors other than changes in the risk being hedged, which are excluded from the assessment of hedge effectiveness, are recognized in current period earnings. Gains or losses on a derivative instrument that is designated as, and is effective as, an economic hedge of a net investment in a foreign operation are reported in the cumulative translation adjustment section of other comprehensive income to the extent it is effective as a hedge. The ineffective portion of a net investment hedge is recognized in current period earnings. The Partnership formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and the Partnership’s evaluation of effectiveness of its hedged transaction. At least monthly, the Partnership also formally assesses whether the derivative it designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in estimated fair values or cash flows of the hedged items using either the regression analysis or the dollar offset method. For net investment hedges, the Partnership uses a method based on changes in spot rates to measure effectiveness. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. The Partnership may also at any time remove a designation of a fair value hedge. The fair values of hedging derivative instruments are reflected within Other Assets in the Consolidated Statements of Financial Condition. For freestanding derivative contracts, the Partnership presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains from Fund Investment Activities or, where derivative instruments are held by the Partnership, within Investment Income (Loss) in the Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. The Partnership has elected to not offset derivative assets and liabilities or financial assets in its Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides the Partnership, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments”. Blackstone’s disclosures regarding offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. |
Affiliates | Affiliates Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates. |
Distributions | Distributions Distributions are reflected in the consolidated financial statements when declared. |
Recent Accounting Developments | Recent Accounting Developments In May 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue from contracts with customers. The new guidance was effective for Blackstone beginning January 1, 2018 and was adopted on a full retrospective basis. The guidance requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Blackstone has concluded that its Management and Advisory Fees and Incentive Fees are within the scope of the amended revenue recognition guidance. The adoption of the amended guidance did not have a material impact on the recognition of Management and Advisory Fees. For Incentive Fees, the amended guidance changes the presentation and delays the recognition of revenues compared to the prior accounting treatment. These amounts were previously recognized within Realized and Unrealized Performance Fees — Incentive Fees in the Consolidated Statements of Operations. Under the amended guidance, these amounts will be recognized separately within Incentive Fees. Blackstone recorded a net reduction to Partners’ Capital of $2.2 million as of December 31, 2015, as a result of adopting the amended guidance. For the twelve months ended December 31, 2016, the impact on Total Revenues and Net Income Attributable to The Blackstone Group L.P. was an increase of $20.5 million and $0.2 million, respectively, while Net Income Per Common Unit — Basic, and Net Income Per Common Unit — Diluted remained the same. For the twelve months ended December 31, 2017, the impact on Total Revenues and Net Income Attributable to The Blackstone Group L.P. was a reduction of $26.0 million, $0.5 million, respectively, while Net Income Per Common Unit — Basic, and Net Income Per Common Unit — Diluted remained the same. Also, the reimbursement of certain costs incurred in the process of providing investment management services, primarily travel costs, that were previously presented net in the Consolidated Statements of Operations are presented gross under the amended guidance. For the twelve months ended December 31, 2016 and 2017, these costs were $21.3 million and $22.3 million, respectively, and are presented in General, Administrative and Other Expenses with the related reimbursement presented in Management and Advisory Fees, Net in the Consolidated Statements of Operations. Blackstone has concluded that investments made alongside its limited partners in a partnership which entitle Blackstone to a pro-rata In January 2016, the FASB issued amended guidance on the classification and measurement of financial instruments. The new guidance was effective for Blackstone beginning on January 1, 2018 and was adopted on a modified retrospective basis. However, changes to the accounting for equity securities without a readily determinable fair value were applied prospectively as permitted under the guidance. Adoption did not have a material impact on Blackstone’s consolidated financial statements. In February 2016, the FASB issued amended guidance on the accounting for leases. The guidance requires the recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP. The guidance retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under previous GAAP. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not changed significantly from previous GAAP. For operating leases, a lessee is required to do the following: (a) recognize a right-of-use The guidance is effective for fiscal periods beginning after December 15, 2018. In July 2018, the FASB issued targeted improvements to the amended guidance, which included a new transition method allowing entities to initially apply the new leases standard at the adoption date (January 1, 2019 for Blackstone) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Prior to that issuance, adoption was required on a modified retrospective basis. Blackstone expects to elect the new transition alternative upon adoption, and also expects to elect a package of practical expedients made available earlier by the FASB which result in no requirement to reassess (a) whether any expired or existing contracts are or contain leases, (b) the lease classification for any expired or existing leases or (c) the recognition requirements for initial direct costs for any existing leases. Blackstone is finalizing the impact of the amended guidance on the Consolidated Statement of Financial Condition, which is expected to result in recognition of an operating liability equal to the present value of the remaining lease payments on existing leases as of January 1, 2019 and a corresponding right-of-use In November 2016, the FASB issued amended guidance on classification and presentation of restricted cash on the statement of cash flows. The new guidance was effective for Blackstone beginning on January 1, 2018 and was adopted on a retrospective basis. Under the new guidance, reporting entities are required to explain the changes in the combined total of restricted and unrestricted balances in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents (hereinafter referred to as “restricted cash”) should be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Reporting entities are also required to disclose how the statement of cash flows reconciles to the balance sheet in any situation in which the balance sheet includes more than one line item of cash, cash equivalents, and restricted cash. For the twelve months ended December 31, 2016 the new guidance resulted in a decrease in Net Cash Used in Operating Activities of $452.7 million, a decrease in Net Cash Used in Investing Activities of $7.2 million, and a decrease in Effect of Exchange Rate Changes on Cash and Cash Equivalents, Cash Held by Blackstone Funds, and Restricted Cash of $34.1 million. For the twelve months ended December 31, 2017 the new guidance resulted in a decrease in Net Cash Used in Operating Activities of $822.3 million, an increase in Net Cash Used in Investing Activities of $5.1 million, and an increase in Effect of Exchange Rate Changes on Cash and Cash Equivalents, Cash Held by Blackstone Funds, and Restricted Cash of $103.0 million. Additionally, the new guidance increased the December 31, 2015 End of Period, December 31, 2016 End of Period and December 31, 2017 End of Period balances by $597.9 million, $1.0 billion and $1.9 billion, respectively, in the Consolidated Statement of Cash Flows for the twelve months ended December 31, 2016 and 2017. In August 2018, the FASB issued amended guidance on the disclosure requirements for fair value measurement. The amended guidance added, eliminated and modified disclosures for investments measured at fair value. The guidance is effective January 1, 2020. However, Blackstone has early adopted the amendments, as is permitted, for the period ended September 30, 2018. The impact of the amended guidance on Blackstone was the removal of the requirements to disclose (a) the amount and reasons for transfers between Level I and Level II investments of the fair value hierarchy, (b) the policy for timing of transfers between levels and (c) the valuation process for Level III fair value measurements. The amended guidance also required modification to Blackstone’s disclosure to clarify that information regarding measurement uncertainty is provided as of the relevant reporting date. The requirements to provide additional disclosures did not impact Blackstone as those disclosures had already been provided in prior periods. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net | Intangible Assets, Net consists of the following: December 31, 2018 2017 Finite-Lived Intangible Assets / Contractual Rights $ 1,712,576 $ 1,594,876 Accumulated Amortization (1,244,069 ) (1,185,048 ) Intangible Assets, Net $ 468,507 $ 409,828 |
Changes in Partnership's Intangible Assets, Net | Changes in the Partnership’s Intangible Assets, Net consists of the following: Year Ended December 31, 2018 2017 2016 Balance, Beginning of Year $ 409,828 $ 262,604 $ 345,547 Amortization Expense (59,021 ) (46,776 ) (82,943 ) Acquisitions 117,700 194,000 — Balance, End of Year $ 468,507 $ 409,828 $ 262,604 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments | Investments consist of the following: December 31, 2018 2017 Investments of Consolidated Blackstone Funds $ 8,376,338 $ 12,954,121 Equity Method Investments Partnership Investments 3,649,423 3,263,131 Accrued Performance Allocations 5,883,924 5,328,280 Corporate Treasury Investments 2,206,493 2,566,043 Other Investments 260,853 322,474 $ 20,377,031 $ 24,434,049 |
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income (Loss) - Net Gains (Losses) from Fund Investment Activities in Consolidated Statements of Operations | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income — Net Gains from Fund Investment Activities in the Consolidated Statements of Operations: Year Ended December 31, 2018 2017 2016 Realized Gains $ 74,784 $ 165,106 $ 123,524 Net Change in Unrealized Losses (54,697 ) (21,016 ) (61,045 ) Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds 20,087 144,090 62,479 Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds 171,635 177,507 122,271 Other Income — Net Gains from Fund Investment Activities $ 191,722 $ 321,597 $ 184,750 |
Summarized Financial Information of Partnership's Equity Method Investments | The summarized financial information of the Partnership’s equity method investments for December 31, 2018 are as follows: December 31, 2018 and the Year Then Ended Real Private Hedge Fund Estate Equity Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 89,742,226 $ 79,718,783 $ 26,336,573 $ 24,634,380 $ 353 $ 220,432,315 Other Assets 3,542,235 2,257,152 3,119,639 1,706,579 125,007 10,750,612 Total Assets $ 93,284,461 $ 81,975,935 $ 29,456,212 $ 26,340,959 $ 125,360 $ 231,182,927 Liabilities and Partners’ Capital Debt $ 15,081,536 $ 9,989,289 $ 350,982 $ 5,087,998 $ — $ 30,509,805 Other Liabilities 3,568,159 749,043 1,529,466 1,338,712 28,295 7,213,675 Total Liabilities 18,649,695 10,738,332 1,880,448 6,426,710 28,295 37,723,480 Partners’ Capital 74,634,766 71,237,603 27,575,764 19,914,249 97,065 193,459,447 Total Liabilities and Partners’ Capital $ 93,284,461 $ 81,975,935 $ 29,456,212 $ 26,340,959 $ 125,360 $ 231,182,927 Statement of Operations Interest Income $ 377,615 $ 1,022,387 $ 6,695 $ 1,130,490 $ — $ 2,537,187 Other Income 1,244,754 92,696 166,842 417,883 106,525 2,028,700 Interest Expense (518,137 ) (278,348 ) (17,780 ) (228,734 ) — (1,042,999 ) Other Expenses (921,990 ) (903,737 ) (150,135 ) (547,612 ) (65,249 ) (2,588,723 ) Net Realized and Unrealized Gain (Loss) from Investments 4,437,434 10,172,066 352,018 (733,747 ) — 14,227,771 Net Income $ 4,619,676 $ 10,105,064 $ 357,640 $ 38,280 $ 41,276 $ 15,161,936 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2017 are as follows: December 31, 2017 and the Year Then Ended Real Private Hedge Fund Estate Equity Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 67,780,737 $ 50,339,913 $ 21,639,763 $ 22,593,717 $ 363 $ 162,354,493 Other Assets 3,077,573 2,283,602 1,969,832 1,573,279 154,131 9,058,417 Total Assets $ 70,858,310 $ 52,623,515 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Liabilities and Partners’ Capital Debt $ 6,329,068 $ 6,779,634 $ 53,787 $ 4,896,346 $ — $ 18,058,835 Other Liabilities 1,618,408 430,763 1,150,307 420,988 39,923 3,660,389 Total Liabilities 7,947,476 7,210,397 1,204,094 5,317,334 39,923 21,719,224 Partners’ Capital 62,910,834 45,413,118 22,405,501 18,849,662 114,571 149,693,686 Total Liabilities and Partners’ Capital $ 70,858,310 $ 52,623,515 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Statement of Operations Interest Income $ 485,751 $ 362,788 $ 2,942 $ 928,670 $ — $ 1,780,151 Other Income 1,334,544 45,770 91,006 178,281 107,204 1,756,805 Interest Expense (180,258 ) (121,876 ) (2,086 ) (127,153 ) — (431,373 ) Other Expenses (703,165 ) (568,369 ) (435,974 ) (258,157 ) (57,830 ) (2,023,495 ) Net Realized and Unrealized Gain from Investments 12,223,852 7,892,937 1,054,516 584,366 — 21,755,671 Net Income $ 13,160,724 $ 7,611,250 $ 710,404 $ 1,306,007 $ 49,374 $ 22,837,759 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2016 are as follows: December 31, 2016 and the Year Then Ended Real Private Hedge Fund Estate Equity Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 62,370,093 $ 49,751,021 $ 21,007,134 $ 17,804,292 $ 7,354 $ 150,939,894 Other Assets 4,384,031 2,815,042 2,434,590 1,478,119 173,917 11,285,699 Total Assets $ 66,754,124 $ 52,566,063 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Liabilities and Partners’ Capital Debt $ 4,034,184 $ 3,715,079 $ 73,915 $ 2,495,778 $ — $ 10,318,956 Other Liabilities 1,591,727 1,254,211 1,837,583 701,986 51,266 5,436,773 Total Liabilities 5,625,911 4,969,290 1,911,498 3,197,764 51,266 15,755,729 Partners’ Capital 61,128,213 47,596,773 21,530,226 16,084,647 130,005 146,469,864 Total Liabilities and Partners’ Capital $ 66,754,124 $ 52,566,063 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Statement of Operations Interest Income $ 445,166 $ 353,179 $ 439 $ 849,508 $ — $ 1,648,292 Other Income 1,499,503 10,620 35,264 32,628 104,669 1,682,684 Interest Expense (141,097 ) (82,370 ) (1,410 ) (157,921 ) — (382,798 ) Other Expenses (605,538 ) (473,790 ) (150,964 ) (224,345 ) (56,407 ) (1,511,044 ) Net Realized and Unrealized Gain from Investments 5,368,361 4,870,332 226,368 1,186,038 515 11,651,614 Net Income $ 6,566,395 $ 4,677,971 $ 109,697 $ 1,685,908 $ 48,777 $ 13,088,748 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. |
Performance Fees Allocated to Funds | Accrued Performance Allocations to the Partnership in respect of certain Blackstone Funds were as follows: Real Estate Private Hedge Fund Credit Total Accrued Performance Allocations, December 31, 2017 $ 2,859,307 $ 1,916,971 $ 13,802 $ 538,200 $ 5,328,280 Performance Allocations as a Result of Changes in Fund Fair Values 991,133 1,456,671 33,185 (16,058 ) 2,464,931 Foreign Exchange Loss (27,051 ) — — — (27,051 ) Fund Distributions (970,128 ) (731,523 ) (24,066 ) (156,519 ) (1,882,236 ) Accrued Performance Allocations, December 31, 2018 $ 2,853,261 $ 2,642,119 $ 22,921 $ 365,623 $ 5,883,924 |
Realized and Net Change in Unrealized Gains (Losses) on Investments | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments: Year Ended December 31, 2018 2017 2016 Realized Gains (Losses) $ (1,024 ) $ 4,378 $ (20,263 ) Net Change in Unrealized Gains (Losses) (38,113 ) 50,222 19,671 $ (39,137 ) $ 54,600 $ (592 ) |
Realized and Net Change in Unrealized Gains in Other Investments | The following table presents Blackstone’s Realized and Net Change in Unrealized Gains in Other Investments: Year Ended December 31, 2018 2017 2016 Realized Gains $ 56,381 $ 4,886 $ 2,495 Net Change in Unrealized Gains 20,335 14,324 11,128 $ 76,716 $ 19,210 $ 13,623 |
NET ASSET VALUE AS FAIR VALUE (
NET ASSET VALUE AS FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments | summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of December 31, 2018 is presented below: Strategy Fair Value Unfunded Redemption Redemption Diversified Instruments $ 209,496 $ 127 (a ) (a ) Credit Driven 99,483 268 (b ) (b ) Equity 37,308 — (c ) (c ) Commodities 1,846 — (d ) (d ) $ 348,133 $ 395 (a) Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 3% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 97% of investments in this category are redeemable as of the reporting date. (b) The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 43% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 57% of investments in this category are redeemable as of the reporting date. (c) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. As of the reporting date, the investee fund manager had elected to side-pocket 8% of Blackstone’s investments in the category. (d) The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments | The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. December 31, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Notional Fair Notional Fair Notional Fair Notional Fair Net Investment Hedges Foreign Currency Contracts $ — $ — $ — $ — $ — $ — $ 50,857 $ 453 Freestanding Derivatives Blackstone Interest Rate Contracts 798,137 43,632 844,620 39,164 225,550 2,042 1,530,751 27,275 Foreign Currency Contracts 224,841 1,286 245,371 1,636 279,050 2,097 296,252 2,975 Credit Default Swaps — — 34,060 4,004 2,073 304 2,073 304 Investments of Consolidated Blackstone Funds Foreign Currency Contracts 108,271 524 16,952 164 493,181 24,087 264,693 5,628 Interest Rate Contracts — — 10,000 311 — — — — Credit Default Swaps 20,952 55 46,685 5,710 45,670 3,731 45,582 5,163 Total Return Swaps — — 31,440 1,855 25,645 526 — — 1,152,201 45,497 1,229,128 52,844 1,071,169 32,787 2,139,351 41,345 $ 1,152,201 $ 45,497 $ 1,229,128 $ 52,844 $ 1,071,169 $ 32,787 $ 2,190,208 $ 41,798 |
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations | The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments: Year Ended December 31, 2018 2017 2016 Net Investment Hedges — Foreign Currency Contracts Hedge Ineffectiveness $ (8 ) $ (75 ) $ (108 ) Freestanding Derivatives Realized Gains (Losses) Interest Rate Contracts $ 2,968 $ (2,400 ) $ (1,600 ) Foreign Currency Contracts 10,761 (6,333 ) (5,079 ) Credit Default Swaps (539 ) (3,764 ) (5,141 ) Total Return Swaps 145 295 — Equity Options (120 ) (417 ) — $ 13,215 $ (12,619 ) $ (11,820 ) Net Change in Unrealized Gains (Losses) Interest Rate Contracts 36,472 (24,629 ) 1,253 Foreign Currency Contracts (6,682 ) (3,556 ) 25,839 Credit Default Swaps (521 ) 4,881 (3,027 ) Total Return Swaps (2,107 ) (447 ) — Equity Options — 129 — $ 27,162 $ (23,622 ) $ 24,065 |
FAIR VALUE OPTION (Tables)
FAIR VALUE OPTION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Financial Instruments for Which Fair Value Option Has Been Elected | The following table summarizes the financial instruments for which the fair value option has been elected: December 31, 2018 2017 Assets Loans and Receivables $ 304,173 $ 239,659 Equity and Preferred Securities 390,095 475,485 Debt Securities 529,698 418,061 Assets of Consolidated CLO Vehicles Corporate Loans 6,766,700 10,825,759 Corporate Bonds — 690,125 Other — 458 $ 7,990,666 $ 12,649,547 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes Loans Payable $ 6,473,233 $ 10,594,656 Due to Affiliates 3,201 996 Subordinated Notes Loans Payable 7,478 703,164 Due to Affiliates 52,811 40,390 $ 6,536,723 $ 11,339,206 |
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected: Year Ended December 31, 2018 2017 2016 Realized Net Change Realized Net Change Realized Net Change in Unrealized Assets Loans and Receivables $ 291 $ (447 ) $ (1,214 ) $ 6,590 $ (42 ) $ 3,375 Equity and Preferred Securities 3,451 (3,589 ) 4,611 22,326 (476 ) 16,033 Debt Securities (1,105 ) (29,069 ) 4,866 (3,390 ) (2,404 ) 426 Assets of Consolidated CLO Vehicles Corporate Loans (8,749 ) (285,698 ) (3,827 ) (6,603 ) (6,128 ) 66,601 Corporate Bonds (24,056 ) 9,693 12,442 (36,219 ) 4,793 18,859 Other — 6 — 454 264 — $ (30,168 ) $ (309,104 ) $ 16,878 $ (16,842 ) $ (3,993 ) $ 105,294 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes $ — $ 51,048 $ — $ — $ — $ — Subordinated Notes — 254,966 — 81,460 (2,400 ) (69,103 ) $ — $ 306,014 $ — $ 81,460 $ (2,400 ) $ (69,103 ) |
Information for Financial Instruments on Which Fair Value Option was Elected | The following table presents information for those financial instruments for which the fair value option was elected: December 31, 2018 December 31, 2017 For Financial Assets For Financial Assets Excess Fair Excess Excess Fair Excess Loans and Receivables $ 2,421 $ — $ — $ 1,207 $ — $ — Debt Securities (26,660 ) — — (372 ) — — Assets of Consolidated CLO Vehicles Corporate Loans (301,085 ) — — (13,495 ) 57,778 (19,633 ) Corporate Bonds — — — (21,455 ) — — $ (325,324 ) $ — $ — $ (34,115 ) $ 57,778 $ (19,633 ) (a) Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
FAIR VALUE MEASUREMENTS OF FI_2
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Assets and Liabilities at Fair Value | The following tables summarize the valuation of the Partnership’s financial assets and liabilities by the fair value hierarchy: December 31, 2018 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds and Short-Term Investments $ 623,526 $ — $ — $ — $ 623,526 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 80,726 80,726 Equity Securities 42,937 34,946 201,566 — 279,449 Partnership and LLC Interests — 7,170 355,273 — 362,443 Debt Instruments — 752,622 133,819 — 886,441 Freestanding Derivatives Foreign Currency Contracts — 524 — — 524 Credit Default Swaps — 55 — — 55 Assets of Consolidated CLO Vehicles Corporate Loans — 6,093,342 673,358 — 6,766,700 Total Investments of Consolidated Blackstone Funds 42,937 6,888,659 1,364,016 80,726 8,376,338 Corporate Treasury Investments Equity Securities 233,834 — — — 233,834 Debt Instruments 243,297 1,444,968 24,568 — 1,712,833 Other — — — 259,826 259,826 Total Corporate Treasury Investments 477,131 1,444,968 24,568 259,826 2,206,493 Other Investments 176,432 — 31,617 7,581 215,630 Total Investments 696,500 8,333,627 1,420,201 348,133 10,798,461 Accounts Receivable — Loans and Receivables — — 304,173 — 304,173 Other Assets Freestanding Derivatives Interest Rate Contracts 1,274 42,358 — — 43,632 Foreign Currency Contracts — 1,286 — — 1,286 Total Other Assets 1,274 43,644 — — 44,918 $ 1,321,300 $ 8,377,271 $ 1,724,374 $ 348,133 $ 11,771,078 December 31, 2018 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 6,473,233 $ — $ 6,473,233 Subordinated Notes (b) — 7,478 — 7,478 Total Loans Payable — 6,480,711 — 6,480,711 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) — 3,201 — 3,201 Subordinated Notes (b) — 52,811 — 52,811 Total Due to Affiliates — 56,012 — 56,012 Securities Sold, Not Yet Purchased 35,959 106,658 — 142,617 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 164 — 164 Credit Default Swaps — 5,710 — 5,710 Total Return Swaps — 1,855 — 1,855 Interest Rate Swaps — 311 — 311 Total Liabilities of Consolidated Blackstone Funds — 8,040 — 8,040 Freestanding Derivatives Interest Rate Contracts 3,080 36,084 — 39,164 Foreign Currency Contracts — 1,636 — 1,636 Credit Default Swaps — 4,004 — 4,004 Total Freestanding Derivatives 3,080 41,724 — 44,804 Total Accounts Payable, Accrued Expenses and Other Liabilities 3,080 49,764 — 52,844 $ 39,039 $ 6,693,145 $ — $ 6,732,184 December 31, 2017 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds $ 853,680 $ — $ — $ — $ 853,680 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 130,339 130,339 Equity Securities 67,443 44,026 131,867 — 243,336 Partnership and LLC Interests — 2,549 331,448 — 333,997 Debt Instruments — 643,608 58,155 — 701,763 Freestanding Derivatives Foreign Currency Contracts — 101 — — 101 Credit Default Swaps — 3,731 — — 3,731 Total Return Swaps — 526 — — 526 Assets of Consolidated CLO Vehicles Corporate Loans — 10,318,316 507,443 — 10,825,759 Corporate Bonds — 690,125 — — 690,125 Freestanding Derivatives — Foreign Currency Contracts — 23,986 — — 23,986 Other — — 458 — 458 Total Investments of Consolidated Blackstone Funds 67,443 11,726,968 1,029,371 130,339 12,954,121 Corporate Treasury Investments Equity Securities 282,866 — — — 282,866 Debt Instruments — 1,943,654 24,249 — 1,967,903 Other — — — 315,274 315,274 Total Corporate Treasury Investments 282,866 1,943,654 24,249 315,274 2,566,043 Other Investments 193,072 14,162 95,393 19,847 322,474 Total Investments 543,381 13,684,784 1,149,013 465,460 15,842,638 Accounts Receivable — Loans and Receivables — — 239,659 — 239,659 Other Assets Freestanding Derivatives Interest Rate Contracts 575 1,467 — — 2,042 Foreign Currency Contracts — 2,097 — — 2,097 Credit Default Swaps — 304 — — 304 Total Other Assets 575 3,868 — — 4,443 $ 1,397,636 $ 13,688,652 $ 1,388,672 $ 465,460 $ 16,940,420 December 31, 2017 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 10,594,656 $ — $ 10,594,656 Subordinated Notes (b) — 703,164 — 703,164 Total Loans Payable — 11,297,820 — 11,297,820 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) — 996 — 996 Subordinated Notes (b) — 40,390 — 40,390 Total Due to Affiliates — 41,386 — 41,386 Securities Sold, Not Yet Purchased — 154,380 — 154,380 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 5,628 — 5,628 Credit Default Swaps — 5,163 — 5,163 Total Liabilities of Consolidated Blackstone Funds — 10,791 — 10,791 Freestanding Derivatives Interest Rate Contracts 415 26,860 — 27,275 Foreign Currency Contracts — 2,975 — 2,975 Credit Default Swaps — 304 — 304 Total Freestanding Derivatives 415 30,139 — 30,554 Net Investment Hedges — Foreign Currency Contracts — 453 — 453 Total Accounts Payable, Accrued Expenses and Other Liabilities 415 41,383 — 41,798 $ 415 $ 11,534,969 $ — $ 11,535,384 (a) Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, such as the general partner of the fund, has a controlling financial interest. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. (b) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (1) the fair value of any beneficial interests held by Blackstone, and (2) the carrying value of any beneficial interests that represent compensation for services. |
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy | The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2018: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 138,725 Discounted Cash Flows Discount Rate 7.1% - 26.1% 12.6% Revenue CAGR -0.8% - 32.4% 6.6% Book Value Multiple 0.9x - 9.5x 8.3x Exit Capitalization Rate 5.0% - 11.4% 8.0% Exit Multiple - EBITDA 0.1x - 17.5x 10.3x Exit Multiple - NOI 12.8x N/A Exit Multiple - P/E 17.0x N/A 21,050 Market Comparable Companies Book Value Multiple 0.8x - 8.0x 1.3x Dollar/Acre Multiple $7.0 - $44.1 $32.9 21,492 Other N/A N/A N/A 20,250 Transaction Price N/A N/A N/A 49 Third Party Pricing N/A N/A N/A Partnership and LLC Interests 295,251 Discounted Cash Flows Discount Rate 4.1% - 26.5% 9.7% Revenue CAGR -1.1% - 48.4% 26.9% Book Value Multiple 8.5x - 9.3x 9.2x Exit Capitalization Rate 2.9% - 15.0% 6.3% Exit Multiple - EBITDA 0.1x - 15.3x 10.0x Exit Multiple - NOI 13.3x N/A 9,444 Market Comparable Companies Book Value Multiple 1.1x N/A Dollar/Acre Multiple $5.3 - $12.0 $7.5 9,390 Other N/A N/A N/A 41,188 Transaction Price N/A N/A N/A Debt Instruments 8,342 Discounted Cash Flows Discount Rate 7.0% - 19.3% 9.8% Revenue CAGR 0.7% N/A Exit Multiple - EBITDA 6.5x N/A 120,843 Third Party Pricing N/A N/A N/A 4,634 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 41 Discounted Cash Flows Discount Rate 5.0% N/A 673,317 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 1,364,016 Corporate Treasury Investments $ 7,947 Discounted Cash Flows Discount Rate 4.4% - 7.5% 6.6% Default Rate 2.0% N/A Pre-payment Rate 20.0% N/A Recovery Lag 12 Months - 13 Months Recovery Rate 17.5% - 70.0% 67.7% Reinvestment Rate LIBOR + 400 bps N/A 16,621 Third Party Pricing N/A N/A N/A Loans and Receivables 304,173 Discounted Cash Flows Discount Rate 6.1% - 12.8% 8.7% Other Investments 26,631 Discounted Cash Flows Discount Rate 1.0% - 15.0% 2.8% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps N/A 4,986 Transaction Price N/A N/A N/A $ 1,724,374 The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2017: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted- Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 91,753 Discounted Cash Flows Discount Rate 7.1% - 31.4% 12.6% Revenue CAGR 1.0% - 49.4% 7.1% Exit Capitalization Rate 5.0% - 11.4% 8.5% Exit Multiple - EBITDA 4.0x - 16.0x 9.9x Exit Multiple - NOI 8.8x - 12.5x 10.5x Exit Multiple - P/E 9.5x - 17.0x 11.0x 862 Market Comparable Companies Book Value Multiple 0.8x - 0.9x 0.9x Exit Multiple - EBITDA 8.0x N/A 17,536 Other N/A N/A N/A 21,716 Transaction Price N/A N/A N/A Partnership and LLC Interests 293,744 Discounted Cash Flows Discount Rate 4.6% - 26.5% 9.8% Revenue CAGR -22.2% - 71.5% 8.4% Exit Capitalization Rate 3.1% - 10.0% 5.7% Exit Multiple - EBITDA 0.1x - 15.0x 8.6x Exit Multiple - NOI 12.5x N/A 530 Market Comparable Companies Book Value Multiple 1.0x N/A 22,346 Other N/A N/A N/A 758 Third Party Pricing N/A N/A N/A 14,070 Transaction Price N/A N/A N/A Debt Instruments 6,122 Discounted Cash Flows Discount Rate 6.6% - 18.4% 9.6% Revenue CAGR 7.7% N/A Exit Capitalization Rate 8.3% N/A Exit Multiple - NOI 12.0x N/A 50,136 Third Party Pricing N/A N/A N/A 1,897 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 8,277 Market Comparable Companies EBITDA Multiple 7.0x N/A 499,624 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 1,029,371 Corporate Treasury Investments $ 8,886 Discounted Cash Flows Discount Rate 5.1% - 6.3% 5.4% Default Rate 2.0% N/A Pre-payment 20% N/A Recovery Lag 12 Months N/A Recovery Rate 30.0% - 70.0% 68.1% Reinvestment Rate LIBOR + 400 bps N/A 15,363 Third Party Pricing N/A N/A N/A Loans and Receivables 239,659 Discounted Cash Flows Discount Rate 7.1% - 10.3% 8.8% Other Investments 65,821 Discounted Cash Flows Discount Rate 0.7% - 13.0% 2.2% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps - LIBOR + 401 LIBOR + 413 bps bps 29,572 Transaction Price N/A N/A N/A $ 1,388,672 N/A Not applicable. CAGR Compound annual growth rate. EBITDA Earnings before interest, taxes, depreciation and amortization. Exit Multiple Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. NOI Net operating income. P/E Price-earnings ratio. Third Party Pricing Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. Transaction Price Includes recent acquisitions or transactions. (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. |
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used | The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Partnership has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Consolidated Statements of Operations. Level III Financial Assets at Fair Value Year Ended December 31, 2018 2017 Investments Loans and Other Total Investments Loans and Other Total Balance, Beginning of Period $ 1,029,371 $ 239,659 $ 119,642 $ 1,388,672 $ 685,873 $ 211,359 $ 130,588 $ 1,027,820 Transfer In Due to Consolidation and Acquisition 50,043 — — 50,043 34,651 — — 34,651 Transfer Out Due to Deconsolidation (217,182 ) — — (217,182 ) (38,629 ) — — (38,629 ) Transfer In to Level III (b) 190,497 — 8,484 198,981 59,473 — 27,127 86,600 Transfer Out of Level III (b) (127,829 ) — (56,534 ) (184,363 ) (168,986 ) — (22,111 ) (191,097 ) Purchases 862,844 1,016,838 28,041 1,907,723 869,817 856,042 25,335 1,751,194 Sales (457,824 ) (953,538 ) (43,213 ) (1,454,575 ) (473,178 ) (835,426 ) (54,039 ) (1,362,643 ) Settlements — (22,285 ) (73 ) (22,358 ) — (12,584 ) (1,573 ) (14,157 ) Changes in Gains (Losses) Included in Earnings 34,096 23,499 (162 ) 57,433 60,350 20,268 14,315 94,933 Balance, End of Period $ 1,364,016 $ 304,173 $ 56,185 $ 1,724,374 $ 1,029,371 $ 239,659 $ 119,642 $ 1,388,672 Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date $ (4,378 ) $ — $ 2,439 $ (1,939 ) $ 14,083 $ 21,482 $ (91 ) $ 35,474 (a) Represents corporate treasury investments and Other Investments. (b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Maximum Exposure to Loss Relating to Non-Consolidated VIEs | The Partnership’s maximum exposure to loss relating to non-consolidated VIEs were as follows: December 31, 2018 2017 Investments $ 942,700 $ 805,501 Accounts Receivable — 15,760 Due from Affiliates 254,744 81,465 Potential Clawback Obligation 159,691 98,331 Maximum Exposure to Loss $ 1,357,135 $ 1,001,057 Amounts Due to Non-Consolidated VIEs $ 207 $ 179 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Repurchase Agreements Obligation by Type of Collateral Pledged | The following tables provide information regarding the Partnership’s Repurchase Agreements obligation by type of collateral pledged: December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Total Repurchase Agreements Asset-Backed Securities $ — $ 42,908 $ 144,731 $ 34,563 $ 222,202 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 222,202 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 Days 30 - 90 Greater than Total Repurchase Agreements Asset-Backed Securities $ — $ 22,756 $ 96,084 $ — $ 118,840 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 118,840 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — |
OTHER ASSETS AND ACCOUNTS PAY_2
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Assets | Other Assets consists of the following: December 31, 2018 2017 Furniture, Equipment and Leasehold Improvements $ 360,571 $ 345,875 Less: Accumulated Depreciation (240,199 ) (219,309 ) Furniture, Equipment and Leasehold Improvements, Net 120,372 126,566 Prepaid Expenses 110,732 78,723 Freestanding Derivatives 44,918 4,443 Other 18,226 32,965 $ 294,248 $ 242,697 |
OFFSETTING OF ASSETS AND LIAB_2
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Offsetting of Assets | The following tables present the offsetting of assets and liabilities as of December 31, 2018: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 45,416 $ 37,788 $ 5,547 $ 2,081 (a) Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. The following tables present the offsetting of assets as of December 31, 2017: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 8,801 $ 3,279 $ — $ 5,522 |
Offsetting of Liabilities | The following tables present the offsetting of liabilities as of December 31, 2018: Gross and Net Financial Gross Amounts Not Offset in the Statement of Financial Condition Financial Cash Collateral Net Liabilities Freestanding Derivatives $ 52,844 $ 35,905 $ 15,377 $ 1,562 Repurchase Agreements 222,202 222,202 — — $ 275,046 $ 258,107 $ 15,377 $ 1,562 (a) Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. The following tables present the offsetting of liabilities as of December 31, 2017: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Liabilities Net Investment Hedges $ 453 $ — $ — $ 453 Freestanding Derivatives 36,234 3,279 32,405 550 Repurchase Agreements 118,840 118,840 — — $ 155,527 $ 122,119 $ 32,405 $ 1,003 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Partnership's Credit Facilities | The Partnership’s credit facilities consist of the following: December 31, 2018 2017 Credit Borrowing Weighted Credit Borrowing Weighted Revolving Credit Facility (a) $ 1,600,000 $ — 0.75 % $ 1,500,000 $ 683 0.88 % Blackstone Issued Senior Notes (b) 5.875%, Due 3/15/2021 400,000 400,000 5.88 % 400,000 400,000 5.88 % 4.750%, Due 2/15/2023 400,000 400,000 4.75 % 400,000 400,000 4.75 % 2.000%, Due 5/19/2025 344,010 344,010 2.00 % 360,150 360,150 2.00 % 1.000%, Due 10/5/2026 688,020 688,020 1.00 % 720,300 720,300 1.00 % 3.150%, Due 10/2/2027 300,000 300,000 3.15 % 300,000 300,000 3.15 % 6.250%, Due 8/15/2042 250,000 250,000 6.25 % 250,000 250,000 6.25 % 5.000%, Due 6/15/2044 500,000 500,000 5.00 % 500,000 500,000 5.00 % 4.450%, Due 7/15/2045 350,000 350,000 4.45 % 350,000 350,000 4.45 % 4.000%, Due 10/2/2047 300,000 300,000 4.00 % 300,000 300,000 4.00 % 5,132,030 3,532,030 3.79 % 5,080,450 3,581,133 3.76 % Blackstone Fund Facilities (c) — — — 2,803 2,803 2.79 % CLO Vehicles (d) 6,863,285 6,863,285 4.00 % 11,583,607 11,583,607 2.32 % $ 11,995,315 $ 10,395,315 3.93 % $ 16,666,860 $ 15,167,543 2.54 % (a) The Issuer has a Credit Facility with Citibank, N.A., as Administrative Agent in the amount of $1.6 billion with a maturity date of September 21, 2023. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. The Weighted Average Interest Rate presented here represents the margin above adjusted LIBOR. The margin is subject to change based on Blackstone’s credit rating. 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 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. The Borrowing Outstanding at each date represent outstanding but undrawn letters of credit against the credit facility. (b) The Issuer has issued long term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the “Guarantors”), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer’s 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $136.7 million, $200.4 million and $145.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. (c) Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. (d) Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. |
Carrying Value and Fair Value of Blackstone Issued Notes | The following table presents the general characteristics of each of our Notes, as well as their carrying value and fair value. The Notes are included in Loans Payable within the Consolidated Statements of Financial Condition. All of the Notes were issued at a discount. All of the Notes accrue interest from the Issue Date and all pay interest in arrears on a semi-annual December 31, 2018 2017 Senior Notes Carrying Fair Carrying Fair 5.875%, Due 3/15/2021 $ 398,947 $ 421,720 $ 398,514 $ 438,320 4.750%, Due 2/15/2023 395,166 417,600 394,137 434,200 2.000%, Due 5/19/2025 339,959 352,197 355,425 385,433 1.000%, Due 10/5/2026 679,193 647,564 709,871 711,440 3.150%, Due 10/2/2027 296,717 285,030 296,399 295,320 6.250%, Due 8/15/2042 238,221 289,225 238,019 328,200 5.000%, Due 6/15/2044 488,747 490,150 488,536 574,100 4.450%, Due 7/15/2045 344,038 329,770 343,925 372,575 4.000%, Due 10/2/2047 290,163 262,800 289,989 296,940 $ 3,471,151 $ 3,496,056 $ 3,514,815 $ 3,836,528 (a) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
Partnership's Borrowings Through Consolidated CLO Vehicles | Borrowings through the consolidated CLO vehicles consisted of the following: December 31, 2018 2017 Borrowing Weighted Weighted Borrowing Weighted Weighted Senior Secured Notes $ 6,531,550 4.20 % 7.5 $ 10,689,240 2.35 % 4.1 Subordinated Notes 331,735 (a ) N/A 894,367 (a ) N/A $ 6,863,285 $ 11,583,607 (a) The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Components of Senior Secured Notes and Subordinated Notes | Senior Secured Notes and Subordinated Notes comprise the following amounts: December 31, 2018 2017 Amounts Due to Non- Amounts Due to Non- Fair Value Borrowing Fair Fair Value Borrowing Fair Senior Secured Notes $ 6,476,434 $ 3,250 $ 3,201 $ 10,595,652 $ 1,000 $ 996 Subordinated Notes 60,289 111,659 52,811 743,554 53,400 40,390 $ 6,536,723 $ 114,909 $ 56,012 $ 11,339,206 $ 54,400 $ 41,386 |
Scheduled Principal Payments for Borrowings | Scheduled principal payments for borrowings at December 31, 2018 are as follows: Operating Blackstone Fund Total Borrowings 2019 $ — $ — $ — 2020 — — — 2021 400,000 — 400,000 2022 — — — 2023 400,000 — 400,000 Thereafter 2,732,030 6,863,285 9,595,315 $ 3,532,030 $ 6,863,285 $ 10,395,315 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Before Provision for Taxes | The Income Before Provision for Taxes consists of the following: Year Ended December 31, 2018 2017 2016 Income Before Provision for Taxes U.S. Domestic Income $ 3,308,202 $ 3,956,339 $ 2,214,974 Foreign Income 204,739 161,750 166,630 $ 3,512,941 $ 4,118,089 $ 2,381,604 |
Provision (Benefit) for Income Taxes | The Provision for Taxes consists of the following: Year Ended December 31, 2018 2017 2016 Current Federal Income Tax $ 73,525 $ 31,457 $ 32,383 Foreign Income Tax 42,128 36,083 17,322 State and Local Income Tax 53,961 40,507 32,572 169,614 108,047 82,277 Deferred Federal Income Tax 59,924 613,518 42,042 Foreign Income Tax (2,518 ) (34 ) 363 State and Local Income Tax 22,370 21,616 7,680 79,776 635,100 50,085 Provision for Taxes $ 249,390 $ 743,147 $ 132,362 |
Summary of Blackstone's Tax Position | The following table summarizes Blackstone’s tax position: Year Ended December 31, 2018 2017 2016 Income Before Provision for Taxes $ 3,512,941 $ 4,118,089 $ 2,381,604 Provision for Taxes $ 249,390 $ 743,147 $ 132,362 Effective Income Tax Rate 7.1 % 18.0 % 5.6 % |
Reconciliations of Effective Income Tax Rate to Federal Statutory Tax Rate | The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate: Year Ended December 31, 2018 2017 2016 Statutory U.S. Federal Income Tax Rate 21.0 % 35.0 % 35.0 % Income Passed Through to Common Unitholders and Non-Controlling Interest Holders (a) -15.5 % -25.9 % -28.6 % State and Local Income Taxes 1.8 % 1.5 % 1.3 % Equity-Based Compensation — -0.1 % -0.2 % Impact of the Tax Reform Bill — 8.3 % — Other -0.2 % -0.8 % -1.9 % Effective Income Tax Rate 7.1 % 18.0 % 5.6 % (a) Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling interest holders. |
Summary of Tax Effects of Temporary Differences | A summary of the tax effects of the temporary differences is as follows: December 31, 2018 2017 Deferred Tax Assets Fund Management Fees $ 6,955 $ 9,938 Equity-Based Compensation 69,484 54,699 Amortization and Depreciation 768,984 754,924 Net Operating Loss Carry Forward — 8,885 Total Deferred Tax Assets 845,423 828,446 Deferred Tax Liabilities Unrealized Gains from Investments 71,472 65,883 Other 34,469 36,593 Total Deferred Tax Liabilities 105,941 102,476 Net Deferred Tax Assets $ 739,482 $ 725,970 |
Blackstone's Unrecognized Tax Benefits Excluding Related Interest and Penalties | Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were: December 31, 2018 2017 2016 Unrecognized Tax Benefits — January 1 $ 11,454 $ 3,581 $ 15,698 Additions based on Tax Positions Related to Current Year — — 902 Reductions for Tax Positions of Current Year — — (851 ) Additions for Tax Positions of Prior Years 9,671 11,167 — Reductions for Tax Positions of Prior Years (323 ) (1,860 ) (7,837 ) Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations — — (3,774 ) Settlements — (1,382 ) (357 ) Exchange Rate Fluctuations 62 (52 ) (200 ) Unrecognized Tax Benefits — December 31 $ 20,864 $ 11,454 $ 3,581 |
NET INCOME PER COMMON UNIT (Tab
NET INCOME PER COMMON UNIT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Basic and Diluted Net Income Per Common Unit | Basic and diluted net income per common unit for the years ended December 31, 2018, 2017 and 2016 was calculated as follows: Year Ended December 31, 2018 2017 2016 Net Income for Per Common Unit Calculations Net Income Attributable to The Blackstone Group L.P., Basic $ 1,541,788 $ 1,471,374 $ 1,039,014 Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units 1,185,799 — 828,102 Net Income Attributable to The Blackstone Group L.P., Diluted $ 2,727,587 $ 1,471,374 $ 1,867,116 Units Outstanding Weighted-Average Common Units Outstanding, Basic 678,850,245 665,453,198 649,475,264 Weighted-Average Unvested Deferred Restricted Common Units 226,487 793,648 1,445,277 Weighted-Average Blackstone Holdings Partnership Units 527,886,114 — 544,194,049 Weighted-Average Common Units Outstanding, Diluted 1,206,962,846 666,246,846 1,195,114,590 Net Income Per Common Unit, Basic $ 2.27 $ 2.21 $ 1.60 Net Income Per Common Unit, Diluted $ 2.26 $ 2.21 $ 1.56 Distributions Declared Per Common Unit (a) $ 2.42 $ 2.32 $ 1.66 (a) Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
Summary of Anti-Dilutive Securities | The following table summarizes the anti-dilutive securities for the periods indicated: Year Ended December 31, 2018 2017 2016 Weighted-Average Blackstone Holdings Partnership Units — 533,982,613 — |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Status of Partnership's Unvested Equity-Based Awards | A summary of the status of the Partnership’s unvested equity-based awards as of December 31, 2018 and of changes during the period January 1, 2018 through December 31, 2018 is presented below: Blackstone Holdings The Blackstone Group L.P. Equity Settled Awards Cash Settled Awards Unvested Units Partnership Weighted- Deferred Weighted- Phantom Weighted- Balance, December 31, 2017 30,023,189 $ 35.26 9,019,974 $ 30.03 44,196 $ 31.85 Granted 13,011,587 32.80 5,234,541 32.61 9,408 36.87 Vested (9,350,183 ) 34.35 (4,538,236 ) 30.02 (6,796 ) 35.98 Forfeited (2,130,466 ) 37.15 (404,011 ) 30.85 — — Balance, December 31, 2018 31,554,127 $ 34.38 9,312,268 $ 31.43 46,808 $ 34.66 |
Unvested Units, After Expected Forfeitures | The following unvested units, after expected forfeitures, as of December 31, 2018, are expected to vest: Units Weighted-Average Blackstone Holdings Partnership Units 27,284,548 3.5 Deferred Restricted Blackstone Common Units 8,034,354 2.2 Total Equity-Based Awards 35,318,902 3.2 Phantom Units 38,474 2.5 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Due from Affiliates and Due to Affiliates | Due from Affiliates and Due to Affiliates consisted of the following: December 31, 2018 2017 Due from Affiliates Management Fees, Performance Revenues, Reimbursable Expenses and other receivables from Non-Consolidated Entities and Portfolio Companies $ 1,520,100 $ 1,616,148 Due From Certain Non-Controlling Interest Holders and Blackstone Employees 462,475 410,877 Accrual for Potential Clawback of Previously Distributed Performance Allocations 11,548 1,112 $ 1,994,123 $ 2,028,137 December 31, 2018 2017 Due to Affiliates Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements $ 796,902 $ 715,734 Due to Non-Consolidated Entities 99,728 90,038 Due to Note-Holders of Consolidated CLO Vehicles 56,012 41,386 Due to Certain Non-Controlling Interest Holders and Blackstone Employees 53,613 87,829 Accrual for Potential Repayment of Previously Received Performance Allocations 29,521 2,171 $ 1,035,776 $ 937,158 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Aggregate Minimum Future Payments, Net of Sublease Income, Required on Operating Leases | As of December 31, 2018, the aggregate minimum future payments, net of sublease income, required on the operating leases are as follows: 2019 $ 78,506 2020 72,191 2021 80,914 2022 79,094 2023 77,248 Thereafter 273,347 Total $ 661,300 |
Clawback Obligations by Segment | The following table presents the clawback obligations by segment: December 31, 2018 2017 Segment Blackstone Current and Total Blackstone Current and Total Real Estate $ 15,770 $ 10,053 $ 25,823 $ — $ — $ — Private Equity 13,296 (12,448 ) 848 — — — Credit 1,355 1,495 2,850 1,059 1,112 2,171 $ 30,421 $ (900 ) $ 29,521 $ 1,059 $ 1,112 $ 2,171 (a) The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Data of Segments | The following tables present the financial data for Blackstone’s four segments as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016. December 31, 2018 and the Twelve Months Then Ended Real Estate Private Hedge Fund Credit Total Management and Advisory Fees, Net Base Management Fees $ 985,399 $ 785,223 $ 519,782 $ 553,921 $ 2,844,325 Transaction, Advisory and Other Fees, Net 152,513 58,165 3,180 15,640 229,498 Management Fee Offsets (11,442 ) (13,504 ) (93 ) (12,332 ) (37,371 ) Total Management and Advisory Fees, Net 1,126,470 829,884 522,869 557,229 3,036,452 Fee Related Performance Revenues 124,502 — — (666 ) 123,836 Fee Related Compensation (459,430 ) (375,446 ) (162,172 ) (219,098 ) (1,216,146 ) Other Operating Expenses (146,260 ) (133,096 ) (77,772 ) (131,200 ) (488,328 ) Fee Related Earnings 645,282 321,342 282,925 206,265 1,455,814 Realized Performance Revenues 914,984 757,406 42,419 96,962 1,811,771 Realized Performance Compensation (284,319 ) (318,167 ) (21,792 ) (53,863 ) (678,141 ) Realized Principal Investment Income 92,525 109,731 17,039 16,763 236,058 Total Net Realizations 723,190 548,970 37,666 59,862 1,369,688 Total Segment Distributable Earnings $ 1,368,472 $ 870,312 $ 320,591 $ 266,127 $ 2,825,502 Segment Assets $ 7,521,117 $ 7,548,544 $ 1,976,809 $ 3,592,356 $ 20,638,826 December 31, 2017 and the Twelve Months Then Ended Real Estate Private Hedge Fund Credit Total Management and Advisory Fees, Net Base Management Fees $ 872,191 $ 724,818 $ 516,048 $ 567,334 $ 2,680,391 Transaction, Advisory and Other Fees, Net 82,781 57,624 2,980 13,431 156,816 Management Fee Offsets (15,934 ) (18,007 ) (93 ) (32,382 ) (66,416 ) Total Management and Advisory Fees, Net 939,038 764,435 518,935 548,383 2,770,791 Fee Related Performance Revenues 79,500 — — 89,945 169,445 Fee Related Compensation (437,311 ) (347,562 ) (146,924 ) (253,842 ) (1,185,639 ) Other Operating Expenses (136,042 ) (120,997 ) (68,265 ) (99,562 ) (424,866 ) Fee Related Earnings 445,185 295,876 303,746 284,924 1,329,731 Realized Performance Revenues 2,141,374 1,157,188 154,343 194,902 3,647,807 Realized Performance Compensation (751,526 ) (404,544 ) (40,707 ) (100,834 ) (1,297,611 ) Realized Principal Investment Income 255,903 154,837 9,074 16,380 436,194 Total Net Realizations 1,645,751 907,481 122,710 110,448 2,786,390 Total Segment Distributable Earnings $ 2,090,936 $ 1,203,357 $ 426,456 $ 395,372 $ 4,116,121 Segment Assets $ 7,585,002 $ 6,369,491 $ 2,107,441 $ 3,926,286 $ 19,988,220 Twelve Months Ended December 31, 2016 Real Estate Private Hedge Fund Credit Total Management and Advisory Fees, Net Base Management Fees $ 795,161 $ 555,593 $ 521,736 $ 525,289 $ 2,397,779 Transaction, Advisory and Other Fees, Net 95,324 39,283 1,061 9,190 144,858 Management Fee Offsets (7,322 ) (34,810 ) — (37,512 ) (79,644 ) Total Management and Advisory Fees, Net 883,163 560,066 522,797 496,967 2,462,993 Fee Related Performance Revenues 18,178 — — 83,252 101,430 Fee Related Compensation (379,331 ) (298,149 ) (153,645 ) (223,313 ) (1,054,438 ) Other Operating Expenses (137,581 ) (130,685 ) (75,870 ) (87,700 ) (431,836 ) Fee Related Earnings 384,429 131,232 293,282 269,206 1,078,149 Realized Performance Revenues 1,214,931 245,268 42,177 43,210 1,545,586 Realized Performance Compensation (335,147 ) (110,882 ) (15,029 ) (22,199 ) (483,257 ) Realized Principal Investment Income (Loss) 122,712 73,377 (7,224 ) 11,004 199,869 Total Net Realizations 1,002,496 207,763 19,924 32,015 1,262,198 Total Segment Distributable Earnings $ 1,386,925 $ 338,995 $ 313,206 $ 301,221 $ 2,340,347 |
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes | The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the years ended December 31, 2018, 2017 and 2016 along with Total Assets as of December 31, 2018 and 2017: Year Ended December 31, 2018 2017 2016 Revenues Total GAAP Revenues $ 6,833,259 $ 7,145,015 $ 5,146,299 Less: Unrealized Performance Allocations (a) (561,163 ) 105,432 (530,120 ) Less: Unrealized Principal Investment (Income) Loss (b) 65,851 131,206 (20,421 ) Less: Interest and Dividend Revenue (c) (181,763 ) (142,920 ) (96,399 ) Less: Other Revenue (d) (89,468 ) 140,051 (54,712 ) Impact of Consolidation (e) (277,406 ) (322,729 ) (117,965 ) Amortization of Intangibles (f) 1,548 1,548 1,548 Transaction-Related Charges (g) (588,710 ) (40,153 ) (20,635 ) Intersegment Eliminations 5,969 6,787 2,283 Total Segment Revenue (h) $ 5,208,117 $ 7,024,237 $ 4,309,878 Year Ended December 31, 2018 2017 2016 Expenses Total GAAP Expenses $ 3,512,040 $ 3,752,378 $ 2,949,445 Less: Unrealized Performance Allocations Compensation (i) (319,742 ) (103,794 ) (333,528 ) Less: Equity Based Compensation (j) (158,220 ) (107,110 ) (79,571 ) Less: Interest Expense (k) (159,838 ) (192,838 ) (148,022 ) Impact of Consolidation (e) (112,354 ) (133,081 ) (52,586 ) Amortization of Intangibles (f) (58,446 ) (46,749 ) (82,918 ) Transaction-Related Charges (g) (326,794 ) (267,477 ) (285,572 ) Intersegment Eliminations 5,969 6,787 2,283 Total Segment Expenses (l) $ 2,382,615 $ 2,908,116 $ 1,969,531 Year Ended December 31, 2018 2017 2016 Other Income Total GAAP Other Income $ 191,722 $ 725,452 $ 184,750 Impact of Consolidation (e) (191,722 ) (321,597 ) (184,750 ) Transaction-Related Charges (g) — (403,855 ) — Total Segment Other Income $ — $ — $ — Year Ended December 31, 2018 2017 2016 Income Before Provision for Taxes Total GAAP Income Before Provision for Taxes $ 3,512,941 $ 4,118,089 $ 2,381,604 Less: Unrealized Performance Allocations (a) (561,163 ) 105,432 (530,120 ) Less: Unrealized Principal Investment (Income) Loss (b) 65,851 131,206 (20,421 ) Less: Interest and Dividend Revenue (c) (181,763 ) (142,920 ) (96,399 ) Less: Other Revenue (d) (89,468 ) 140,051 (54,712 ) Plus: Unrealized Performance Allocations Compensation (i) 319,742 103,794 333,528 Plus: Equity Based Compensation (j) 158,220 107,110 79,571 Plus: Interest Expense (k) 159,838 192,838 148,022 Impact of Consolidation (e) (356,774 ) (511,245 ) (250,129 ) Amortization of Intangibles (f) 59,994 48,297 84,466 Transaction-Related Charges (g) (261,916 ) (176,531 ) 264,937 Total Segment Distributable Earnings $ 2,825,502 $ 4,116,121 $ 2,340,347 Year Ended December 31, 2018 2017 Total Assets Total GAAP Assets $ 28,924,650 $ 34,415,919 Impact of Consolidation (e) (8,285,824 ) (14,427,699 ) Total Segment Assets $ 20,638,826 $ 19,988,220 Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges. (a) This adjustment removes Unrealized Performance Revenues on a segment basis. (b) This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. (c) This adjustment removes Interest and Dividend Revenue on a segment basis. (d) This adjustment removes Other Revenue on a segment basis. (e) The Impact of Consolidation adjustment represents the effect of consolidating Blackstone Funds, the elimination of Blackstone’s interest in these funds, the increase to revenue representing the reimbursement of certain expenses by Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the segment presentation, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. (f) Amortization of intangibles consists of the amortization of transaction-related intangibles including intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method. (g) Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. 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 and any gains or losses associated with these corporate actions. For the year ended December 31, 2018, Transaction-Related Charges included $580.9 million of Other Revenues received upon the conclusion of Blackstone’s investment sub-advisory relationship with FS Investments’ funds. (h) Total Segment Revenues is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Management and Advisory Fees, Net $ 3,036,452 $ 2,770,791 $ 2,462,993 Total Segment Fee Related Performance Revenues 123,836 169,445 101,430 Total Segment Realized Performance Revenues 1,811,771 3,647,807 1,545,586 Total Segment Realized Principal Investment Income 236,058 436,194 199,869 Total Segment Revenues $ 5,208,117 $ 7,024,237 $ 4,309,878 (i) This adjustment removes Unrealized Performance Allocations Compensation. (j) This adjustment removes Equity-Based Compensation on a segment basis. (k) This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. (l) Total Segment Expenses is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Fee Related Compensation $ 1,216,146 $ 1,185,639 $ 1,054,438 Total Segment Realized Performance Compensation 678,141 1,297,611 483,257 Total Segment Other Operating Expenses 488,328 424,866 431,836 Total Segment Expenses $ 2,382,615 $ 2,908,116 $ 1,969,531 |
Reconciliation of Total Segments to Reported on the Consolidated Statement of Operations | The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Consolidated Statement of Operations for the years ended December 31, 2018, 2017 and 2016: Year Ended December 31, 2018 2017 2016 Management and Advisory Fees, Net GAAP $ 3,027,796 $ 2,751,322 $ 2,464,290 Segment Adjustment (a) 8,656 19,469 (1,297 ) Total Segment $ 3,036,452 $ 2,770,791 $ 2,462,993 Year Ended December 31, 2018 2017 2016 GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues GAAP Incentive Fees $ 57,540 $ 242,514 $ 149,928 Investment Income — Realized Performance Allocations 1,876,507 3,571,811 1,495,439 GAAP 1,934,047 3,814,325 1,645,367 Total Segment Less: Realized Performance Revenues (1,811,771 ) (3,647,807 ) (1,545,586 ) Segment Adjustment (b) 1,560 2,927 1,649 Total Segment $ 123,836 $ 169,445 $ 101,430 Year Ended December 31, 2018 2017 2016 GAAP Compensation to Total Segment Fee Related Compensation GAAP Compensation $ 1,609,957 $ 1,442,485 $ 1,335,408 Incentive Fee Compensation 33,916 105,279 68,921 Realized Performance Allocations Compensation 711,076 1,281,965 465,129 GAAP 2,354,949 2,829,729 1,869,458 Total Segment Less: Realized Performance Compensation (678,141 ) (1,297,611 ) (483,257 ) Less: Equity-Based Compensation (158,220 ) (107,110 ) (79,571 ) Segment Adjustment (c) (302,442 ) (239,369 ) (252,192 ) Total Segment $ 1,216,146 $ 1,185,639 $ 1,054,438 Year Ended December 31, 2018 2017 2016 GAAP General, Administrative and Other to Total Segment Other Operating Expenses GAAP $ 594,873 $ 488,582 $ 541,624 Segment Adjustment (d) (106,545 ) (63,716 ) (109,788 ) Total Segment $ 488,328 $ 424,866 $ 431,836 Year Ended December 31, 2018 2017 2016 Realized Performance Revenues GAAP Incentive Fees $ 57,540 $ 242,514 $ 149,928 Investment Income — Realized Performance Allocations 1,876,507 3,571,811 1,495,439 GAAP 1,934,047 3,814,325 1,645,367 Total Segment Less: Fee Related Performance Revenues (123,836 ) (169,445 ) (101,430 ) Segment Adjustment (b) 1,560 2,927 1,649 Total Segment $ 1,811,771 $ 3,647,807 $ 1,545,586 Year Ended December 31, 2018 2017 2016 Realized Performance Compensation GAAP Incentive Fee Compensation $ 33,916 $ 105,279 $ 68,921 Realized Performance Allocations Compensation 711,076 1,281,965 465,129 GAAP 744,992 1,387,244 534,050 Total Segment Less: Fee Related Performance Compensation (53,844 ) (75,933 ) (44,969 ) Less: Equity-based compensation — Performance Compensation Related (13,007 ) (13,700 ) (5,824 ) Total Segment $ 678,141 $ 1,297,611 $ 483,257 Year Ended December 31, 2018 2017 2016 Realized Principal Investment Income GAAP $ 415,862 $ 635,769 $ 278,737 Segment Adjustment (e) (179,804 ) (199,575 ) (78,868 ) Total Segment $ 236,058 $ 436,194 $ 199,869 Year Ended December 31, 2018 2017 2016 GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest Income GAAP Interest and Dividend Revenue $ 171,947 $ 139,696 $ 95,724 Interest Expense (163,990 ) (197,486 ) (152,654 ) GAAP 7,957 (57,790 ) (56,930 ) Segment Adjustment (f) 13,968 7,872 5,307 Total Segment $ 21,925 $ (49,918 ) $ (51,623 ) Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges. (a) Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total Segment measures. (b) Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. (c) Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures. (d) Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total Segment measures. (e) 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. (f) Represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement. |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data | Three Months Ended March 31, June 30, September 30, December 31, Revenues $ 1,769,131 $ 2,632,570 $ 1,926,580 $ 504,978 Expenses 982,931 1,016,381 1,017,632 495,096 Other Income (Loss) 110,599 73,519 66,838 (59,234 ) Income (Loss) Before Provision for Taxes $ 896,799 $ 1,689,708 $ 975,786 $ (49,352 ) Net Income (Loss) $ 842,304 $ 1,550,977 $ 948,988 $ (78,718 ) Net Income (Loss) Attributable to The Blackstone Group L.P. $ 367,872 $ 742,042 $ 442,742 $ (10,868 ) Net Income (Loss) Per Common Unit Common Units, Basic $ 0.55 $ 1.09 $ 0.65 $ (0.02 ) Common Units, Diluted $ 0.53 $ 1.09 $ 0.64 $ (0.02 ) Distributions Declared (c) $ 0.85 $ 0.35 $ 0.58 $ 0.64 Three Months Ended March 31, June 30, September 30, December 31, Revenues $ 1,914,718 $ 1,535,726 $ 1,735,358 $ 1,959,213 Expenses 921,773 881,193 904,511 1,044,901 Other Income 66,132 110,054 63,448 485,818 Income Before Provision for Taxes $ 1,059,077 $ 764,587 $ 894,295 $ 1,400,130 Net Income $ 1,001,640 $ 734,979 $ 834,783 $ 803,540 Net Income Attributable to The Blackstone Group L.P. $ 451,909 $ 337,407 $ 377,920 $ 304,138 Net Income Per Common Unit Common Units, Basic $ 0.68 $ 0.51 $ 0.57 $ 0.45 Common Units, Diluted $ 0.68 $ 0.50 $ 0.55 $ 0.45 Distributions Declared (c) $ 0.47 $ 0.87 $ 0.54 $ 0.44 (a) Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. “Summary of Significant Accounting Policies — Recent Accounting Developments” (b) For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone’s investment sub-advisory relationship with FS Investments’ funds. (c) Distributions declared reflects the calendar date of the declaration of each distribution. (d) The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. “Income Taxes”. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018SegmentPerson | Dec. 31, 2017Segment | |
Organization [Line Items] | ||
Number of business segments | Segment | 4 | 4 |
Number of Blackstone founders managing the Partnership | Person | 1 | |
Partnership Unit to Blackstone Common Unit ratio | 100.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangible assets, useful life, years | 8 years 7 months 6 days | ||||||||||||||
Partners capital | $ 6,379,224 | $ 6,634,493 | $ 6,379,224 | $ 6,634,493 | |||||||||||
Total Revenues | 504,978 | $ 1,926,580 | $ 2,632,570 | $ 1,769,131 | 1,959,213 | [3] | $ 1,735,358 | $ 1,535,726 | $ 1,914,718 | 6,833,259 | 7,145,015 | $ 5,146,299 | |||
Net income attributable to The Blackstone Group L.P. | (10,868) | $ 442,742 | $ 742,042 | $ 367,872 | 304,138 | [3] | $ 377,920 | $ 337,407 | $ 451,909 | 1,541,788 | 1,471,374 | 1,039,014 | |||
Net Cash provided (used) by/in Operating Activities | 45,742 | (1,626,395) | (88,591) | ||||||||||||
Net Cash provided (used) by/in Investing Activities | (116,596) | (193,260) | (21,826) | ||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents, Cash Held by Blackstone Funds, and Restricted Cash | 9,712 | 123,850 | (34,059) | ||||||||||||
Cash and Cash Equivalents, Cash Held by Blackstone Funds and Other, and Restricted Cash | $ 2,545,161 | 3,936,489 | $ 2,545,161 | 3,936,489 | 2,860,955 | $ 2,435,261 | |||||||||
Minimum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangible assets, useful life, years | 3 years | ||||||||||||||
Minimum | Leasehold Improvements | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life, years | 10 years | ||||||||||||||
Minimum | Other Long Lived Assets | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life, years | 3 years | ||||||||||||||
Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Finite-lived intangible assets, useful life, years | 20 years | ||||||||||||||
Maximum | Leasehold Improvements | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life, years | 15 years | ||||||||||||||
Maximum | Other Long Lived Assets | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Property, plant and equipment, useful life, years | 7 years | ||||||||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Partners capital | 2,200 | ||||||||||||||
Total Revenues | 500 | 200 | |||||||||||||
Net income attributable to The Blackstone Group L.P. | 26,000 | 20,500 | |||||||||||||
Accounting Standards Update 2014-09 [Member] | General and Administrative Expense [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Cost of investment management services | 22,300 | 21,300 | |||||||||||||
Accounting Standards Update 2016-18 [Member] | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net Cash provided (used) by/in Operating Activities | 822,300 | 452,700 | |||||||||||||
Net Cash provided (used) by/in Investing Activities | 5,100 | 7,200 | |||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents, Cash Held by Blackstone Funds, and Restricted Cash | 103,000 | 34,100 | |||||||||||||
Cash and Cash Equivalents, Cash Held by Blackstone Funds and Other, and Restricted Cash | $ 1,900,000 | $ 1,900,000 | $ 1,000,000 | $ 597,900 | |||||||||||
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | ||||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | ||||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | Nov. 30, 2018USD ($) | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($)Segment |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | $ 1,869,860 | $ 1,778,192 | |
Number of business segments | Segment | 4 | 4 | |
Expected amortization of intangibles, 2019 | $ 71,000 | ||
Expected amortization of intangibles, 2020 | 71,000 | ||
Expected amortization of intangibles, 2021 | 71,000 | ||
Expected amortization of intangibles, 2022 | 63,300 | ||
Expected amortization of intangibles, 2023 | $ 34,300 | ||
Intangible assets expected to amortize over a weighted-average period | 8 years 7 months 6 days | ||
Clarus Ventures Llc | |||
Goodwill And Intangible Assets [Line Items] | |||
Increase of goodwill | $ 91,700 | ||
Increase in intangible assets, contractual rights to earn future fee income | $ 117,700 | ||
Private Equity Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | $ 870,000 | $ 778,300 | |
Real Estate Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | 421,700 | 421,700 | |
Hedge Fund Solutions | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | 172,100 | 172,100 | |
Credit Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | $ 406,100 | $ 406,100 |
Intangible Assets, Net (Detail)
Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets / Contractual Rights | $ 1,712,576 | $ 1,594,876 | ||
Accumulated Amortization | (1,244,069) | (1,185,048) | ||
Intangible Assets, Net | $ 468,507 | $ 409,828 | $ 262,604 | $ 345,547 |
Changes in Partnership's Intang
Changes in Partnership's Intangible Assets, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Balance, Beginning of Year | $ 409,828 | $ 262,604 | $ 345,547 |
Amortization Expense | (59,021) | (46,776) | (82,943) |
Acquisitions | 117,700 | 194,000 | |
Balance, End of Year | $ 468,507 | $ 409,828 | $ 262,604 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Investments | $ 20,377,031 | $ 24,434,049 |
Partnership Investments | ||
Schedule of Investments [Line Items] | ||
Investments | 3,649,423 | 3,263,131 |
Accrued Performance Allocations | ||
Schedule of Investments [Line Items] | ||
Investments | 5,883,924 | 5,328,280 |
Other Investments | ||
Schedule of Investments [Line Items] | ||
Investments | 260,853 | 322,474 |
Consolidated Blackstone Funds | ||
Schedule of Investments [Line Items] | ||
Investments | 8,376,338 | 12,954,121 |
Corporate Treasury Investments | ||
Schedule of Investments [Line Items] | ||
Investments | $ 2,206,493 | $ 2,566,043 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | |||
Investments | $ 20,377,031 | $ 24,434,049 | |
Recognized net gains related to equity method investments | 430,600 | 609,500 | $ 214,400 |
Other Investments | |||
Investment [Line Items] | |||
Investments | 260,853 | 322,474 | |
Equity investments, carrying value | $ 49,400 | ||
Patria Investments Limited and Patria Investimentos Ltda. | |||
Investment [Line Items] | |||
Equity method investment, percentage | 40.00% | ||
Consolidated Blackstone Funds | |||
Investment [Line Items] | |||
Investments | $ 8,376,338 | 12,954,121 | |
Consolidated Blackstone Funds | Blackstone | |||
Investment [Line Items] | |||
Investments | $ 366,500 | $ 488,400 |
Reconciliation of Realized and
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income (Loss) - Net Gains (Losses) from Fund Investment Activities in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Securities [Line Items] | |||
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | $ 2,903,659 | $ 4,144,712 | $ 2,381,604 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 171,947 | 139,696 | 95,724 |
Other Income - Net Gains from Fund Investment Activities | 191,722 | 321,597 | 184,750 |
Consolidated Blackstone Funds | |||
Gain (Loss) on Securities [Line Items] | |||
Realized Gains | 74,784 | 165,106 | 123,524 |
Net Change in Unrealized Losses | (54,697) | (21,016) | (61,045) |
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | 20,087 | 144,090 | 62,479 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 171,635 | 177,507 | 122,271 |
Other Income - Net Gains from Fund Investment Activities | $ 191,722 | $ 321,597 | $ 184,750 |
Summarized Financial Informatio
Summarized Financial Information of Partnership's Equity Method Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | $ 220,432,315 | $ 162,354,493 | $ 150,939,894 | |
Other Assets | 10,750,612 | 9,058,417 | 11,285,699 | |
Total Assets | 231,182,927 | 171,412,910 | 162,225,593 | |
Debt | 30,509,805 | 18,058,835 | 10,318,956 | |
Other Liabilities | 7,213,675 | 3,660,389 | 5,436,773 | |
Total Liabilities | 37,723,480 | 21,719,224 | 15,755,729 | |
Partners' Capital | 193,459,447 | 149,693,686 | 146,469,864 | |
Total Liabilities and Partners' Capital | 231,182,927 | 171,412,910 | 162,225,593 | |
Interest Income | 2,537,187 | 1,780,151 | 1,648,292 | |
Other Income | 2,028,700 | 1,756,805 | 1,682,684 | |
Interest Expense | (1,042,999) | (431,373) | (382,798) | |
Other Expenses | (2,588,723) | (2,023,495) | (1,511,044) | |
Net Realized and Unrealized Gain (Loss) from Investments | 14,227,771 | 21,755,671 | 11,651,614 | |
Net Income | 15,161,936 | 22,837,759 | 13,088,748 | |
Real Estate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 89,742,226 | 67,780,737 | 62,370,093 | |
Other Assets | 3,542,235 | 3,077,573 | 4,384,031 | |
Total Assets | 93,284,461 | 70,858,310 | 66,754,124 | |
Debt | 15,081,536 | 6,329,068 | 4,034,184 | |
Other Liabilities | 3,568,159 | 1,618,408 | 1,591,727 | |
Total Liabilities | 18,649,695 | 7,947,476 | 5,625,911 | |
Partners' Capital | 74,634,766 | 62,910,834 | 61,128,213 | |
Total Liabilities and Partners' Capital | 93,284,461 | 70,858,310 | 66,754,124 | |
Interest Income | 377,615 | 485,751 | 445,166 | |
Other Income | 1,244,754 | 1,334,544 | 1,499,503 | |
Interest Expense | (518,137) | (180,258) | (141,097) | |
Other Expenses | (921,990) | (703,165) | (605,538) | |
Net Realized and Unrealized Gain (Loss) from Investments | 4,437,434 | 12,223,852 | 5,368,361 | |
Net Income | 4,619,676 | 13,160,724 | 6,566,395 | |
Private Equity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 79,718,783 | 50,339,913 | 49,751,021 | |
Other Assets | 2,257,152 | 2,283,602 | 2,815,042 | |
Total Assets | 81,975,935 | 52,623,515 | 52,566,063 | |
Debt | 9,989,289 | 6,779,634 | 3,715,079 | |
Other Liabilities | 749,043 | 430,763 | 1,254,211 | |
Total Liabilities | 10,738,332 | 7,210,397 | 4,969,290 | |
Partners' Capital | 71,237,603 | 45,413,118 | 47,596,773 | |
Total Liabilities and Partners' Capital | 81,975,935 | 52,623,515 | 52,566,063 | |
Interest Income | 1,022,387 | 362,788 | 353,179 | |
Other Income | 92,696 | 45,770 | 10,620 | |
Interest Expense | (278,348) | (121,876) | (82,370) | |
Other Expenses | (903,737) | (568,369) | (473,790) | |
Net Realized and Unrealized Gain (Loss) from Investments | 10,172,066 | 7,892,937 | 4,870,332 | |
Net Income | 10,105,064 | 7,611,250 | 4,677,971 | |
Hedge Fund Solutions | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 26,336,573 | 21,639,763 | 21,007,134 | |
Other Assets | 3,119,639 | 1,969,832 | 2,434,590 | |
Total Assets | 29,456,212 | 23,609,595 | 23,441,724 | |
Debt | 350,982 | 53,787 | 73,915 | |
Other Liabilities | 1,529,466 | 1,150,307 | 1,837,583 | |
Total Liabilities | 1,880,448 | 1,204,094 | 1,911,498 | |
Partners' Capital | 27,575,764 | 22,405,501 | 21,530,226 | |
Total Liabilities and Partners' Capital | 29,456,212 | 23,609,595 | 23,441,724 | |
Interest Income | 6,695 | 2,942 | 439 | |
Other Income | 166,842 | 91,006 | 35,264 | |
Interest Expense | (17,780) | (2,086) | (1,410) | |
Other Expenses | (150,135) | (435,974) | (150,964) | |
Net Realized and Unrealized Gain (Loss) from Investments | 352,018 | 1,054,516 | 226,368 | |
Net Income | 357,640 | 710,404 | 109,697 | |
Credit | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 24,634,380 | 22,593,717 | 17,804,292 | |
Other Assets | 1,706,579 | 1,573,279 | 1,478,119 | |
Total Assets | 26,340,959 | 24,166,996 | 19,282,411 | |
Debt | 5,087,998 | 4,896,346 | 2,495,778 | |
Other Liabilities | 1,338,712 | 420,988 | 701,986 | |
Total Liabilities | 6,426,710 | 5,317,334 | 3,197,764 | |
Partners' Capital | 19,914,249 | 18,849,662 | 16,084,647 | |
Total Liabilities and Partners' Capital | 26,340,959 | 24,166,996 | 19,282,411 | |
Interest Income | 1,130,490 | 928,670 | 849,508 | |
Other Income | 417,883 | 178,281 | 32,628 | |
Interest Expense | (228,734) | (127,153) | (157,921) | |
Other Expenses | (547,612) | (258,157) | (224,345) | |
Net Realized and Unrealized Gain (Loss) from Investments | (733,747) | 584,366 | 1,186,038 | |
Net Income | 38,280 | 1,306,007 | 1,685,908 | |
Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | [1] | 353 | 363 | 7,354 |
Other Assets | [1] | 125,007 | 154,131 | 173,917 |
Total Assets | [1] | 125,360 | 154,494 | 181,271 |
Other Liabilities | [1] | 28,295 | 39,923 | 51,266 |
Total Liabilities | [1] | 28,295 | 39,923 | 51,266 |
Partners' Capital | [1] | 97,065 | 114,571 | 130,005 |
Total Liabilities and Partners' Capital | [1] | 125,360 | 154,494 | 181,271 |
Other Income | [1] | 106,525 | 107,204 | 104,669 |
Other Expenses | [1] | (65,249) | (57,830) | (56,407) |
Net Realized and Unrealized Gain (Loss) from Investments | [1] | 515 | ||
Net Income | [1] | $ 41,276 | $ 49,374 | $ 48,777 |
[1] | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone's segments. |
Performance Fees Allocated to F
Performance Fees Allocated to Funds (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | $ 24,434,049 |
Ending Balance | 20,377,031 |
Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 5,328,280 |
Performance Allocations as a Result of Changes in Fund Fair Values | 2,464,931 |
Foreign Exchange Loss | (27,051) |
Fund Distributions | (1,882,236) |
Ending Balance | 5,883,924 |
Real Estate Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 2,859,307 |
Performance Allocations as a Result of Changes in Fund Fair Values | 991,133 |
Foreign Exchange Loss | (27,051) |
Fund Distributions | (970,128) |
Ending Balance | 2,853,261 |
Private Equity Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 1,916,971 |
Performance Allocations as a Result of Changes in Fund Fair Values | 1,456,671 |
Fund Distributions | (731,523) |
Ending Balance | 2,642,119 |
Hedge Fund Solutions Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 13,802 |
Performance Allocations as a Result of Changes in Fund Fair Values | 33,185 |
Fund Distributions | (24,066) |
Ending Balance | 22,921 |
Credit Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 538,200 |
Performance Allocations as a Result of Changes in Fund Fair Values | (16,058) |
Fund Distributions | (156,519) |
Ending Balance | $ 365,623 |
Realized and Net Change in Unre
Realized and Net Change in Unrealized Gains (Losses) on Investments Held by Blackstone's Treasury Cash Management Strategies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Securities [Line Items] | |||
Total realized and net change in unrealized gains (losses) | $ 2,903,659 | $ 4,144,712 | $ 2,381,604 |
Corporate Treasury Investments | |||
Gain (Loss) on Securities [Line Items] | |||
Realized Gains (Losses) | (1,024) | 4,378 | (20,263) |
Net Change in Unrealized Gains (Losses) | (38,113) | 50,222 | 19,671 |
Total realized and net change in unrealized gains (losses) | $ (39,137) | $ 54,600 | $ (592) |
Realized and Net Change in Un_2
Realized and Net Change in Unrealized Gains in Other Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Securities [Line Items] | |||
Total Investment Income | $ 2,903,659 | $ 4,144,712 | $ 2,381,604 |
Other Investments | |||
Gain (Loss) on Securities [Line Items] | |||
Realized Gains | 56,381 | 4,886 | 2,495 |
Net Change in Unrealized Gains | 20,335 | 14,324 | 11,128 |
Total Investment Income | $ 76,716 | $ 19,210 | $ 13,623 |
Summary of Fair Value by Strate
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Detail) $ in Thousands | Dec. 31, 2018USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 348,133 | |
Unfunded Commitments | 395 | |
Diversified Instruments | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 209,496 | [1] |
Unfunded Commitments | 127 | [1] |
Credit Driven | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 99,483 | [2] |
Unfunded Commitments | 268 | [2] |
Equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 37,308 | [3] |
Commodities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 1,846 | [4] |
[1] | Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 3% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 97% of investments in this category are redeemable as of the reporting date. | |
[2] | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 43% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 57% of investments in this category are redeemable as of the reporting date. | |
[3] | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. As of the reporting date, the investee fund manager had elected to side-pocket 8% of Blackstone's investments in the category. | |
[4] | The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
Summary of Fair Value by Stra_2
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Diversified Instruments | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 3.00% |
Percentage of investments side pocketed as of reporting date | 97.00% |
Credit Driven | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 43.00% |
Percentage of investments redeemable as of reporting date | 57.00% |
Equity | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 100.00% |
Investee funds categorized as non redeemable, percentage | 8.00% |
Commodities | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 100.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax - Currency Translation Adjustment | $ (33,506) | $ 80,366 | $ (22,194) |
Net Investment Hedges | Foreign Currency Contracts | |||
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax - Currency Translation Adjustment | $ (1,400) |
Summary of Aggregate Notional A
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | $ 1,152,201 | $ 1,071,169 |
Derivative Liabilities, Notional | 1,229,128 | 2,190,208 |
Derivative Assets, Fair Value | 45,497 | 32,787 |
Derivative Liabilities, Fair Value | 52,844 | 41,798 |
Net Investment Hedges | Foreign Currency Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Notional | 50,857 | |
Derivative Liabilities, Fair Value | 453 | |
Freestanding Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 1,152,201 | 1,071,169 |
Derivative Liabilities, Notional | 1,229,128 | 2,139,351 |
Derivative Assets, Fair Value | 45,497 | 32,787 |
Derivative Liabilities, Fair Value | 52,844 | 41,345 |
Freestanding Derivatives | Total Return Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 25,645 | |
Derivative Liabilities, Notional | 31,440 | |
Derivative Assets, Fair Value | 526 | |
Derivative Liabilities, Fair Value | 1,855 | |
Freestanding Derivatives | Blackstone | Credit Default Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 2,073 | |
Derivative Liabilities, Notional | 34,060 | 2,073 |
Derivative Assets, Fair Value | 304 | |
Derivative Liabilities, Fair Value | 4,004 | 304 |
Freestanding Derivatives | Consolidated Blackstone Funds | Credit Default Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 20,952 | 45,670 |
Derivative Liabilities, Notional | 46,685 | 45,582 |
Derivative Assets, Fair Value | 55 | 3,731 |
Derivative Liabilities, Fair Value | 5,710 | 5,163 |
Freestanding Derivatives | Foreign Currency Contracts | Blackstone | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 224,841 | 279,050 |
Derivative Liabilities, Notional | 245,371 | 296,252 |
Derivative Assets, Fair Value | 1,286 | 2,097 |
Derivative Liabilities, Fair Value | 1,636 | 2,975 |
Freestanding Derivatives | Foreign Currency Contracts | Consolidated Blackstone Funds | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 108,271 | 493,181 |
Derivative Liabilities, Notional | 16,952 | 264,693 |
Derivative Assets, Fair Value | 524 | 24,087 |
Derivative Liabilities, Fair Value | 164 | 5,628 |
Freestanding Derivatives | Interest Rate Contracts | Blackstone | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 798,137 | 225,550 |
Derivative Liabilities, Notional | 844,620 | 1,530,751 |
Derivative Assets, Fair Value | 43,632 | 2,042 |
Derivative Liabilities, Fair Value | 39,164 | $ 27,275 |
Freestanding Derivatives | Interest Rate Contracts | Consolidated Blackstone Funds | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Notional | 10,000 | |
Derivative Liabilities, Fair Value | $ 311 |
Summary of Impact of Derivative
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Hedges | Foreign Currency Contracts | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | $ (8) | $ (75) | $ (108) |
Freestanding Derivatives | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | 13,215 | (12,619) | (11,820) |
Net Change in Unrealized Gain (Loss) | 27,162 | (23,622) | 24,065 |
Freestanding Derivatives | Total Return Swaps | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | 145 | 295 | |
Net Change in Unrealized Gain (Loss) | (2,107) | (447) | |
Freestanding Derivatives | Credit Default Swap | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | (539) | (3,764) | (5,141) |
Net Change in Unrealized Gain (Loss) | (521) | 4,881 | (3,027) |
Freestanding Derivatives | Foreign Currency Contracts | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | 10,761 | (6,333) | (5,079) |
Net Change in Unrealized Gain (Loss) | (6,682) | (3,556) | 25,839 |
Freestanding Derivatives | Interest Rate Contracts | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | 2,968 | (2,400) | (1,600) |
Net Change in Unrealized Gain (Loss) | 36,472 | (24,629) | $ 1,253 |
Freestanding Derivatives | Equity Options | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | $ (120) | (417) | |
Net Change in Unrealized Gain (Loss) | $ 129 |
Summary of Financial Instrument
Summary of Financial Instruments for Which Fair Value Option Has Been Elected (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Loans and Receivables | $ 304,173 | $ 239,659 |
Assets | 7,990,666 | 12,649,547 |
Liabilities | 6,536,723 | 11,339,206 |
Debt Securities | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Investments | 529,698 | 418,061 |
Other | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Investments | 458 | |
Equity and Preferred Securities | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Investments | 390,095 | 475,485 |
Corporate Loans | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Investments | 6,766,700 | 10,825,759 |
Corporate Bonds | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Investments | 690,125 | |
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Fair value of Loan payable | 6,473,233 | 10,594,656 |
Fair value of due to Affiliates | 3,201 | 996 |
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | ||
Fair value of Loan payable | 7,478 | 703,164 |
Fair value of due to Affiliates | $ 52,811 | $ 40,390 |
Realized and Net Change in Un_3
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Realized Gains (Losses) | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | $ (2,400) | ||
Realized Gains (Losses) | Debt Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | $ (1,105) | $ 4,866 | (2,404) |
Realized Gains (Losses) | Assets | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (30,168) | 16,878 | (3,993) |
Realized Gains (Losses) | Loans and Receivables | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 291 | (1,214) | (42) |
Realized Gains (Losses) | Equity and Preferred Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 3,451 | 4,611 | (476) |
Realized Gains (Losses) | Corporate Loans | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (8,749) | (3,827) | (6,128) |
Realized Gains (Losses) | Corporate Bonds | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (24,056) | 12,442 | 4,793 |
Realized Gains (Losses) | Subordinated Notes | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (2,400) | ||
Realized Gains (Losses) | Other | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 264 | ||
Net Change In Unrealized Gains (Losses) | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 306,014 | 81,460 | (69,103) |
Net Change In Unrealized Gains (Losses) | Debt Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (29,069) | (3,390) | 426 |
Net Change In Unrealized Gains (Losses) | Assets | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (309,104) | (16,842) | 105,294 |
Net Change In Unrealized Gains (Losses) | Loans and Receivables | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (447) | 6,590 | 3,375 |
Net Change In Unrealized Gains (Losses) | Equity and Preferred Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (3,589) | 22,326 | 16,033 |
Net Change In Unrealized Gains (Losses) | Corporate Loans | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (285,698) | (6,603) | 66,601 |
Net Change In Unrealized Gains (Losses) | Corporate Bonds | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 9,693 | (36,219) | 18,859 |
Net Change In Unrealized Gains (Losses) | Senior Secured Notes | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 51,048 | ||
Net Change In Unrealized Gains (Losses) | Subordinated Notes | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 254,966 | 81,460 | $ (69,103) |
Net Change In Unrealized Gains (Losses) | Other | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Abstract] | |||
Realized and net change in unrealized gains (losses) on financial instruments | $ 6 | $ 454 |
Information for Financial Instr
Information for Financial Instruments on Which Fair Value Option was Elected (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | $ (325,324) | $ (34,115) | |
Fair value of financial instruments more than one day past due | [1] | 57,778 | |
Excess (Deficiency) of fair value more than one day past due over uncollected principal | [1] | 19,633 | |
Debt Securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | (26,660) | (372) | |
Corporate Loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | (301,085) | (13,495) | |
Fair value of financial instruments more than one day past due | [1] | 57,778 | |
Excess (Deficiency) of fair value more than one day past due over uncollected principal | [1] | 19,633 | |
Corporate Bonds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | (21,455) | ||
Loans and Receivables | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | 2,421 | 1,207 | |
Fair value of financial instruments more than one day past due | $ 0 | $ 0 | |
[1] | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
Information for Financial Ins_2
Information for Financial Instruments on Which Fair Value Option was Elected (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans and bonds contractual payment past due, number days | 1 day | 1 day |
Fair Value Option - Additional
Fair Value Option - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value of financial instruments more than one day past due | [1] | $ 57,778,000 | |
Corporate Bonds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value of financial instruments more than one day past due | $ 0 | 0 | |
Fair value of financial instruments with non-accrual status | 0 | 0 | |
Loans and Receivables | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value of financial instruments more than one day past due | 0 | 0 | |
Fair value of financial instruments with non-accrual status | $ 0 | $ 0 | |
[1] | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
Financial Assets and Liabilitie
Financial Assets and Liabilities at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accounts Receivable - Loans and Receivables | $ 304,173 | $ 239,659 | ||
Assets | 7,990,666 | 12,649,547 | ||
Securities Sold, Not Yet Purchased | 142,617 | 154,380 | ||
Liabilities | 6,536,723 | 11,339,206 | ||
Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 45,416 | 8,801 | ||
Derivatives liabilities | 52,844 | 36,234 | ||
Net Investment Hedges | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 453 | |||
Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 458 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents - Money Market Funds | 623,526 | 853,680 | ||
Total Investments | 10,798,461 | 15,842,638 | ||
Accounts Receivable - Loans and Receivables | 304,173 | 239,659 | ||
Derivatives assets | 4,443 | |||
Assets | 11,771,078 | 16,940,420 | ||
Total Other Assets | 44,918 | |||
Fair value of due to Affiliates | 56,012 | 41,386 | [1] | |
Securities Sold, Not Yet Purchased | 142,617 | 154,380 | ||
Total Accounts Payable, Accrued Expenses and Other Liabilities | 52,844 | 41,798 | ||
Liabilities | 6,732,184 | 11,535,384 | ||
Fair Value, Measurements, Recurring | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 44,804 | 30,554 | ||
Fair Value, Measurements, Recurring | Freestanding Derivatives | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 1,286 | 2,097 | ||
Derivatives liabilities | 1,636 | 2,975 | ||
Fair Value, Measurements, Recurring | Freestanding Derivatives | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 43,632 | 2,042 | ||
Derivatives liabilities | 39,164 | 27,275 | ||
Fair Value, Measurements, Recurring | Net Investment Hedges | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 453 | |||
Fair Value, Measurements, Recurring | Other Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 215,630 | 322,474 | ||
Fair Value, Measurements, Recurring | Credit Default Swap | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 304 | |||
Derivatives liabilities | 4,004 | 304 | ||
Fair Value, Measurements, Recurring | Net Asset Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 348,133 | 465,460 | ||
Assets | 348,133 | 465,460 | ||
Fair Value, Measurements, Recurring | Net Asset Value | Other Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 7,581 | 19,847 | ||
Fair Value, Measurements, Recurring | Liabilities of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Loan payable | 6,480,711 | 11,297,820 | [1] | |
Fair value of due to Affiliates | [1],[2] | 40,390 | ||
Fair Value, Measurements, Recurring | Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Loan payable | [2] | 6,473,233 | 10,594,656 | [1] |
Fair value of due to Affiliates | [2] | 3,201 | 996 | [1] |
Fair Value, Measurements, Recurring | Liabilities of Consolidated CLO Vehicles | Subordinated Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Loan payable | [2] | 7,478 | 703,164 | [1] |
Fair value of due to Affiliates | [2] | 52,811 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 8,376,338 | 12,954,121 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 8,040 | 10,791 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | Total Return Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 526 | ||
Derivatives liabilities | 1,855 | |||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 55 | 101 | |
Derivatives liabilities | 164 | 5,628 | [1] | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 311 | |||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Freestanding Derivatives | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 23,986 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 458 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Investment Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 279,449 | 130,339 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 362,443 | 243,336 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Partnership And LLC Interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 886,441 | 333,997 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 524 | 701,763 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Corporate Loans | Assets Of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 6,766,700 | 10,825,759 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Corporate Bonds | Assets Of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 690,125 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Credit Default Swap | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 3,731 | ||
Derivatives liabilities | 5,710 | 5,163 | [1] | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Net Asset Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 80,726 | 130,339 | |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Net Asset Value | Investment Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 130,339 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 2,206,493 | 2,566,043 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 259,826 | 315,274 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 233,834 | 282,866 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 1,712,833 | 1,967,903 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Net Asset Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 259,826 | 315,274 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Net Asset Value | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 259,826 | 315,274 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents - Money Market Funds | 623,526 | 853,680 | ||
Total Investments | 696,500 | 543,381 | ||
Derivatives assets | 575 | |||
Assets | 1,321,300 | 1,397,636 | ||
Total Other Assets | 1,274 | |||
Securities Sold, Not Yet Purchased | 35,959 | |||
Total Accounts Payable, Accrued Expenses and Other Liabilities | 3,080 | 415 | ||
Liabilities | 39,039 | 415 | ||
Fair Value, Measurements, Recurring | Level 1 | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 3,080 | 415 | ||
Fair Value, Measurements, Recurring | Level 1 | Freestanding Derivatives | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 1,274 | 575 | ||
Derivatives liabilities | 3,080 | 415 | ||
Fair Value, Measurements, Recurring | Level 1 | Other Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 176,432 | 193,072 | ||
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 42,937 | 67,443 | |
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | Investment Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 42,937 | ||
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 67,443 | ||
Fair Value, Measurements, Recurring | Level 1 | Corporate Treasury Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 477,131 | 282,866 | ||
Fair Value, Measurements, Recurring | Level 1 | Corporate Treasury Investments | Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 233,834 | 282,866 | ||
Fair Value, Measurements, Recurring | Level 1 | Corporate Treasury Investments | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 243,297 | |||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 8,333,627 | 13,684,784 | ||
Derivatives assets | 3,868 | |||
Assets | 8,377,271 | 13,688,652 | ||
Total Other Assets | 43,644 | |||
Fair value of due to Affiliates | 56,012 | 41,386 | [1] | |
Securities Sold, Not Yet Purchased | 106,658 | 154,380 | ||
Total Accounts Payable, Accrued Expenses and Other Liabilities | 49,764 | 41,383 | ||
Liabilities | 6,693,145 | 11,534,969 | ||
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 41,724 | 30,139 | ||
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 1,286 | 2,097 | ||
Derivatives liabilities | 1,636 | 2,975 | ||
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | Interest Rate Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 42,358 | 1,467 | ||
Derivatives liabilities | 36,084 | 26,860 | ||
Fair Value, Measurements, Recurring | Level 2 | Net Investment Hedges | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 453 | |||
Fair Value, Measurements, Recurring | Level 2 | Other Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 14,162 | |||
Fair Value, Measurements, Recurring | Level 2 | Credit Default Swap | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives assets | 304 | |||
Derivatives liabilities | 4,004 | 304 | ||
Fair Value, Measurements, Recurring | Level 2 | Liabilities of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Loan payable | 6,480,711 | 11,297,820 | [1] | |
Fair value of due to Affiliates | [1],[2] | 40,390 | ||
Fair Value, Measurements, Recurring | Level 2 | Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Loan payable | [2] | 6,473,233 | 10,594,656 | [1] |
Fair value of due to Affiliates | [2] | 3,201 | 996 | [1] |
Fair Value, Measurements, Recurring | Level 2 | Liabilities of Consolidated CLO Vehicles | Subordinated Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of Loan payable | [2] | 7,478 | 703,164 | [1] |
Fair value of due to Affiliates | [2] | 52,811 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 6,888,659 | 11,726,968 | |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 8,040 | 10,791 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | Total Return Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 526 | ||
Derivatives liabilities | 1,855 | |||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 55 | 101 | |
Derivatives liabilities | 164 | 5,628 | [1] | |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives liabilities | 311 | |||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Freestanding Derivatives | Foreign Currency Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 23,986 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Investment Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 34,946 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 7,170 | 44,026 | |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Partnership And LLC Interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 752,622 | 2,549 | |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 524 | 643,608 | |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Corporate Loans | Assets Of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 6,093,342 | 10,318,316 | |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Corporate Bonds | Assets Of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 690,125 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Credit Default Swap | Freestanding Derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 3,731 | ||
Derivatives liabilities | 5,710 | 5,163 | [1] | |
Fair Value, Measurements, Recurring | Level 2 | Corporate Treasury Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 1,444,968 | 1,943,654 | ||
Fair Value, Measurements, Recurring | Level 2 | Corporate Treasury Investments | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 1,444,968 | 1,943,654 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 1,420,201 | 1,149,013 | ||
Accounts Receivable - Loans and Receivables | 304,173 | 239,659 | ||
Assets | 1,724,374 | 1,388,672 | ||
Fair Value, Measurements, Recurring | Level 3 | Other Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 31,617 | 95,393 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 1,364,016 | 1,029,371 | |
Assets | 1,364,016 | 1,029,371 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Other | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 458 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Investment Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 201,566 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 355,273 | 131,867 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 133,819 | 331,448 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 58,155 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Corporate Loans | Assets Of Consolidated CLO Vehicles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | [1] | 673,358 | 507,443 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | 24,568 | 24,249 | ||
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Debt Instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total Investments | $ 24,568 | $ 24,249 | ||
[1] | Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, such as the general partner of the fund, has a controlling financial interest. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. | |||
[2] | Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (1) the fair value of any beneficial interests held by Blackstone, and (2) the carrying value of any beneficial interests that represent compensation for services. |
Summary of Quantitative Inputs
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 7,990,666 | $ 12,649,547 |
Fair Value, Measurements, Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 11,771,078 | 16,940,420 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 1,724,374 | 1,388,672 |
Fair Value, Measurements, Recurring | Level 3 | Loans and Receivables | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 304,173 | $ 239,659 |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 6.10% | 7.10% |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 12.80% | 10.30% |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 8.70% | 8.80% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 26,631 | $ 65,821 |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | Measurement Input, Default Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 2.00% | 2.00% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | Measurement Input, Constant Prepayment Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 20.00% | 20.00% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | Measurement Input, Expected Term [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Lag | 12 months | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | Measurement Input Recovery Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Rate | 70.00% | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | Measurement Input Reinvestment Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 4,986 | $ 29,572 |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 1.00% | 0.70% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Minimum | Discounted Cash Flows | Measurement Input, Expected Term [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Lag | 12 months | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Minimum | Discounted Cash Flows | Measurement Input Recovery Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Rate | 70.00% | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Minimum | Discounted Cash Flows | Measurement Input Reinvestment Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 15.00% | 13.00% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Maximum | Discounted Cash Flows | Measurement Input Reinvestment Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Reinvestment Rate | 4.13% | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 2.80% | 2.20% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Weighted Average | Discounted Cash Flows | Measurement Input Reinvestment Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Reinvestment Rate | 4.01% | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 1,364,016 | $ 1,029,371 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 41 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 5.00% | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 8,277 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Market Comparable Companies | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
EBITDA Multiple | 7 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 673,317 | $ 499,624 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 138,725 | 91,753 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | Measurement Input Net Operating Income Rate[Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - NOI | 12.8 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | Measurement Input, Commodity Market Price [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - P/E | 17 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 21,050 | $ 862 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Market Comparable Companies | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 8 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Other | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 21,492 | $ 17,536 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 20,250 | $ 21,716 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 49 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 7.10% | 7.10% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | (0.80%) | 1.00% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 0.9 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 5.00% | 5.00% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 0.1 | 4 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | Measurement Input, Commodity Market Price [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - P/E | 9.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Discounted Cash Flows | Measurement Input Net Operating Income [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - NOI | 8.8 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Minimum | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 0.8 | 0.8 |
Dollar/Acre Multiple | 7 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 26.10% | 31.40% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 32.40% | 49.40% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 9.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 11.40% | 11.40% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 17.5 | 16 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | Measurement Input, Commodity Market Price [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - P/E | 17 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Discounted Cash Flows | Measurement Input Net Operating Income [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - NOI | 12.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Maximum | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 8 | 0.9 |
Dollar/Acre Multiple | 44.1 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 12.60% | 12.60% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 6.60% | 7.10% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 8.3 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 8.00% | 8.50% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 10.3 | 9.9 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | Measurement Input, Commodity Market Price [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - P/E | 11 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Discounted Cash Flows | Measurement Input Net Operating Income [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - NOI | 10.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Weighted Average | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 1.3 | 0.9 |
Dollar/Acre Multiple | 32.9 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 295,251 | $ 293,744 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | Measurement Input Net Operating Income [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - NOI | 13.3 | 12.5 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 9,444 | $ 530 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 1.1 | 1 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Other | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 9,390 | $ 22,346 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 41,188 | 14,070 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 758 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 4.10% | 4.60% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Minimum | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | (1.10%) | (22.20%) |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Minimum | Discounted Cash Flows | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 8.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Minimum | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 2.90% | 3.10% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Minimum | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 0.1 | 0.1 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Minimum | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Dollar/Acre Multiple | 5.3 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 26.50% | 26.50% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Maximum | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 48.40% | 71.50% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Maximum | Discounted Cash Flows | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 9.3 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Maximum | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 15.00% | 10.00% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Maximum | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 15.3 | 15 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Maximum | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Dollar/Acre Multiple | 12 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 9.70% | 9.80% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Weighted Average | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 26.90% | 8.40% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Weighted Average | Discounted Cash Flows | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 9.2 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Weighted Average | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 6.30% | 5.70% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Weighted Average | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 10 | 8.6 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Weighted Average | Market Comparable Companies | Measurement Input, Revenue Multiple | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Dollar/Acre Multiple | 7.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 8,342 | $ 6,122 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 0.70% | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 8.30% | |
Exit Multiple - EBITDA | 6.5 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | Measurement Input Net Operating Income [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - NOI | 12 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 4,634 | $ 1,897 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 120,843 | $ 50,136 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 7.00% | 6.60% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Minimum | Discounted Cash Flows | Measurement Input, Long-term Revenue Growth Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 7.70% | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 19.30% | 18.40% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 9.80% | 9.60% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 7,947 | $ 8,886 |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | Measurement Input, Default Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 2.00% | 2.00% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | Measurement Input, Constant Prepayment Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 20.00% | 20.00% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | Measurement Input, Expected Term [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Lag | 12 months | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | Measurement Input Reinvestment Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 16,621 | $ 15,363 |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 5.10% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Discounted Cash Flows | Measurement Input, Expected Term [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Lag | 12 months | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Discounted Cash Flows | Measurement Input Recovery Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Rate | 17.50% | 30.00% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Discounted Cash Flows | Measurement Input Reinvestment Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 4.40% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 6.30% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Maximum | Discounted Cash Flows | Measurement Input, Expected Term [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Lag | 21 months | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Maximum | Discounted Cash Flows | Measurement Input Recovery Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Rate | 70.00% | 70.00% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Maximum | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 7.50% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 5.40% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Weighted Average | Discounted Cash Flows | Measurement Input, Expected Term [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Lag | 13 months | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Weighted Average | Discounted Cash Flows | Measurement Input Recovery Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Recovery Rate | 67.70% | 68.10% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Weighted Average | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 6.60% |
Summary of Changes in Financial
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used (Detail) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | $ 1,388,672 | $ 1,027,820 | |
Transfer In Due to Consolidation and Acquisition | 50,043 | 34,651 | |
Transfer Out Due to Deconsolidation | (217,182) | (38,629) | |
Transfer In to Level III | [1] | 198,981 | 86,600 |
Transfer Out of Level III | [1] | (184,363) | (191,097) |
Purchases | 1,907,723 | 1,751,194 | |
Sales | (1,454,575) | (1,362,643) | |
Settlements | (22,358) | (14,157) | |
Changes in Gains (Losses) Included in Earnings | 57,433 | 94,933 | |
Balance, End of Period | 1,724,374 | 1,388,672 | |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | (1,939) | 35,474 | |
Other Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | [2] | 119,642 | 130,588 |
Transfer In to Level III | [1],[2] | 8,484 | 27,127 |
Transfer Out of Level III | [1],[2] | (56,534) | (22,111) |
Purchases | [2] | 28,041 | 25,335 |
Sales | [2] | (43,213) | (54,039) |
Settlements | [2] | (73) | (1,573) |
Changes in Gains (Losses) Included in Earnings | [2] | (162) | 14,315 |
Balance, End of Period | [2] | 56,185 | 119,642 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | [2] | 2,439 | (91) |
Loans and Receivables | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | 239,659 | 211,359 | |
Purchases | 1,016,838 | 856,042 | |
Sales | (953,538) | (835,426) | |
Settlements | (22,285) | (12,584) | |
Changes in Gains (Losses) Included in Earnings | 23,499 | 20,268 | |
Balance, End of Period | 304,173 | 239,659 | |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 21,482 | ||
Consolidated Blackstone Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | 1,029,371 | 685,873 | |
Transfer In Due to Consolidation and Acquisition | 50,043 | 34,651 | |
Transfer Out Due to Deconsolidation | (217,182) | (38,629) | |
Transfer In to Level III | [1] | 190,497 | 59,473 |
Transfer Out of Level III | [1] | (127,829) | (168,986) |
Purchases | 862,844 | 869,817 | |
Sales | (457,824) | (473,178) | |
Changes in Gains (Losses) Included in Earnings | 34,096 | 60,350 | |
Balance, End of Period | 1,364,016 | 1,029,371 | |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | $ (4,378) | $ 14,083 | |
[1] | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. | ||
[2] | Represents corporate treasury investments and Other Investments. |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial instruments - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level III financial liabilities | $ 0 | $ 0 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total Assets | $ 28,924,650 | $ 34,415,919 |
Total Liabilities | 15,170,564 | 20,692,828 |
Non-Controlling Interests | 3,648,766 | $ 3,253,148 |
Cumulative-Effect Adjustment, Deconsolidation of Variable Interest Entity [Member] | ||
Variable Interest Entity [Line Items] | ||
Total Assets | (8,900,000) | |
Total Liabilities | (8,700,000) | |
Non-Controlling Interests | $ (196,100) |
Maximum Exposure to Loss Relati
Maximum Exposure to Loss Relating to Non-Consolidated VIEs (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 1,357,135 | $ 1,001,057 |
Investments | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 942,700 | 805,501 |
Accounts Receivable | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 15,760 | |
Due from Affiliates | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 254,744 | 81,465 |
Potential Clawback Obligation | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | 159,691 | 98,331 |
Due to Non Consolidated Entity | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | $ 207 | $ 179 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Pledged securities with carrying value to collateralize its repurchase agreements | $ 279.5 | $ 169.7 |
Schedule of Repurchase Agreemen
Schedule of Repurchase Agreements Obligation by Type of Collateral Pledged (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 222,202 | $ 118,840 |
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. "Offsetting of Assets and Liabilities" | 222,202 | 118,840 |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 222,202 | 118,840 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
Up to 30 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 42,908 | 22,756 |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
30 - 90 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 144,731 | 96,084 |
Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | $ 0 |
Greater than 90 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 34,563 |
Components of Other Assets (Det
Components of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Other Assets [Line Items] | ||
Furniture, Equipment and Leasehold Improvements | $ 360,571 | $ 345,875 |
Less: Accumulated Depreciation | (240,199) | (219,309) |
Furniture, Equipment and Leasehold Improvements, Net | 120,372 | 126,566 |
Prepaid Expenses | 110,732 | 78,723 |
Freestanding Derivatives | 44,918 | 4,443 |
Other | 18,226 | 32,965 |
Total Other Assets | $ 294,248 | $ 242,697 |
Other Assets and Accounts Pay_3
Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Other Assets [Line Items] | |||
Depreciation expense | $ 23.9 | $ 25.2 | $ 32 |
Accounts Payable, Accrued Expenses and Other Liabilities for redemption to investors | 15.6 | 27.2 | |
Payables relating to unsettled purchases | $ 311.4 | $ 1.5 |
Offsetting of Assets and Liab_3
Offsetting of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets and Liabilities [Line Items] | ||
Repurchase agreements gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | $ 222,202 | $ 118,840 |
Repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 222,202 | 118,840 |
Repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 0 | 0 |
Repurchase agreements Net Amount | 0 | 0 |
Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 275,046 | 155,527 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 258,107 | 122,119 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 15,377 | 32,405 |
Net Amount | 1,562 | 1,003 |
Net Investment Hedges | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivatives gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 453 | |
Derivatives Net Amount | 453 | |
Freestanding Derivatives | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivatives gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 45,416 | 8,801 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 37,788 | 3,279 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 5,547 | |
Derivatives Net Amount | 2,081 | 5,522 |
Derivatives gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 52,844 | 36,234 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 35,905 | 3,279 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 15,377 | 32,405 |
Derivatives Net Amount | $ 1,562 | $ 550 |
Offsetting Of Assets And Liab_4
Offsetting Of Assets And Liabilities - Additional Information (Detail) - Cash Pooling Arrangement $ in Billions | Dec. 31, 2018USD ($) |
Offsetting Assets [Line Items] | |
Aggregate cash balance on deposit relating to the cash pooling arrangement | $ 1.4 |
Overdraft facility | $ 1.4 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Sep. 20, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 1,600,000,000 | ||
Line of credit expiration date | Aug. 31, 2021 | Sep. 21, 2023 | |
Fair value of the CLO assets | $ 7,100,000,000 | $ 13,400,000,000 |
Partnership Credit Facilities (
Partnership Credit Facilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||
Credit Available | $ 11,995,315 | $ 16,666,860 | |
Borrowing Outstanding | $ 10,395,315 | $ 15,167,543 | |
Weighted Average Interest Rate | 3.93% | 2.54% | |
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [1] | $ 1,600,000 | $ 1,500,000 |
Borrowing Outstanding | [1] | $ 683 | |
Weighted Average Interest Rate | [1] | 0.75% | 0.88% |
Senior Secured Note | 5.875% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 400,000 | $ 400,000 |
Borrowing Outstanding | [2] | $ 400,000 | $ 400,000 |
Weighted Average Interest Rate | [2] | 5.88% | 5.88% |
Senior Secured Note | 4.750% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 400,000 | $ 400,000 |
Borrowing Outstanding | [2] | $ 400,000 | $ 400,000 |
Weighted Average Interest Rate | [2] | 4.75% | 4.75% |
Senior Secured Note | 6.250% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 250,000 | $ 250,000 |
Borrowing Outstanding | [2] | $ 250,000 | $ 250,000 |
Weighted Average Interest Rate | [2] | 6.25% | 6.25% |
Senior Secured Note | 5.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 500,000 | $ 500,000 |
Borrowing Outstanding | [2] | $ 500,000 | $ 500,000 |
Weighted Average Interest Rate | [2] | 5.00% | 5.00% |
Senior Secured Note | 4.450% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 350,000 | $ 350,000 |
Borrowing Outstanding | [2] | $ 350,000 | $ 350,000 |
Weighted Average Interest Rate | [2] | 4.45% | 4.45% |
Senior Secured Note | 2.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 344,010 | $ 360,150 |
Borrowing Outstanding | [2] | $ 344,010 | $ 360,150 |
Weighted Average Interest Rate | [2] | 2.00% | 2.00% |
Senior Secured Note | 1.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 688,020 | $ 720,300 |
Borrowing Outstanding | [2] | $ 688,020 | $ 720,300 |
Weighted Average Interest Rate | [2] | 1.00% | 1.00% |
Senior Secured Note | 3.150% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 300,000 | $ 300,000 |
Borrowing Outstanding | [2] | $ 300,000 | $ 300,000 |
Weighted Average Interest Rate | [2] | 3.15% | 3.15% |
Senior Secured Note | 4.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 300,000 | $ 300,000 |
Borrowing Outstanding | [2] | $ 300,000 | $ 300,000 |
Weighted Average Interest Rate | [2] | 4.00% | 4.00% |
Partnership's Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2] | $ 5,132,030 | $ 5,080,450 |
Borrowing Outstanding | [2] | $ 3,532,030 | $ 3,581,133 |
Weighted Average Interest Rate | [2] | 3.79% | 3.76% |
Blackstone Fund Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 2,803 | |
Borrowing Outstanding | [3] | $ 2,803 | |
Weighted Average Interest Rate | [3] | 2.79% | |
CLO Vehicles | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [4] | $ 6,863,285 | $ 11,583,607 |
Borrowing Outstanding | [4] | $ 6,863,285 | $ 11,583,607 |
Weighted Average Interest Rate | [4] | 4.00% | 2.32% |
[1] | The Issuer has a Credit Facility with Citibank, N.A., as Administrative Agent in the amount of $1.6 billion with a maturity date of September 21, 2023. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. The Weighted Average Interest Rate presented here represents the margin above adjusted LIBOR. The margin is subject to change based on Blackstone's credit rating. 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 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. The Borrowing Outstanding at each date represent outstanding but undrawn letters of credit against the credit facility. | ||
[2] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $136.7 million, $200.4 million and $145.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. | ||
[3] | Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. | ||
[4] | Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. |
Partnership Credit Facilities_2
Partnership Credit Facilities (Parenthetical) (Detail) - USD ($) | Sep. 20, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 1,600,000,000 | ||||
Line of credit expiration date | Aug. 31, 2021 | Sep. 21, 2023 | |||
Maximum percentage of aggregate principal amount of the outstanding notes | 25.00% | ||||
Percentage of repurchase of note on principal amount of notes | 101.00% | ||||
6.625% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Interest expense | $ 136,700,000 | $ 200,400,000 | $ 145,600,000 | ||
5.875% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Mar. 15, 2021 | |||
4.750% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Feb. 15, 2023 | |||
6.250% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Aug. 15, 2042 | |||
5.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Jun. 15, 2044 | |||
4.450% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Jul. 15, 2045 | |||
2.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | May 19, 2025 | |||
1.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | May 10, 2026 | |||
Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 1,600,000,000 | ||||
Line of credit expiration date | Sep. 21, 2023 | ||||
Senior Secured Note | 3.150% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Oct. 2, 2027 | |||
Senior Secured Note | 4.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1] | Feb. 10, 2047 | |||
[1] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $136.7 million, $200.4 million and $145.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Carrying Value and Fair Value o
Carrying Value and Fair Value of Blackstone Issued Notes (Detail) - Senior Secured Notes - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Carrying Value | $ 3,471,151 | $ 3,514,815 | |
Debt instrument, fair value | [1] | 3,496,056 | 3,836,528 |
5.875% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 398,947 | 398,514 | |
Debt instrument, fair value | [1] | 421,720 | 438,320 |
4.750% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 395,166 | 394,137 | |
Debt instrument, fair value | [1] | 417,600 | 434,200 |
2.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 339,959 | 355,425 | |
Debt instrument, fair value | [1] | 352,197 | 385,433 |
1.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 679,193 | 709,871 | |
Debt instrument, fair value | [1] | 647,564 | 711,440 |
3.150% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 296,717 | 296,399 | |
Debt instrument, fair value | [1] | 285,030 | 295,320 |
6.250% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 238,221 | 238,019 | |
Debt instrument, fair value | [1] | 289,225 | 328,200 |
5.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 488,747 | 488,536 | |
Debt instrument, fair value | [1] | 490,150 | 574,100 |
4.450% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 344,038 | 343,925 | |
Debt instrument, fair value | [1] | 329,770 | 372,575 |
4.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 290,163 | 289,989 | |
Debt instrument, fair value | [1] | $ 262,800 | $ 296,940 |
[1] | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
Carrying Value and Fair Value_2
Carrying Value and Fair Value of Blackstone Issued Notes (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | ||
5.875% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Mar. 15, 2021 | [1] |
5.875% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 5.875% | |
Debt instrument, maturity date | Mar. 15, 2021 | |
4.750% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Feb. 15, 2023 | [1] |
4.750% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 4.75% | |
Debt instrument, maturity date | Feb. 15, 2023 | |
2.000% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | May 19, 2025 | [1] |
2.000% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.00% | |
Debt instrument, maturity date | May 19, 2025 | |
1.000% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | May 10, 2026 | [1] |
1.000% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.00% | |
Debt instrument, maturity date | Oct. 5, 2026 | |
3.150% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 3.15% | |
Debt instrument, maturity date | Oct. 2, 2027 | |
6.250% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Aug. 15, 2042 | [1] |
6.250% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 6.25% | |
Debt instrument, maturity date | Aug. 15, 2042 | |
5.000% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jun. 15, 2044 | [1] |
5.000% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 5.00% | |
Debt instrument, maturity date | Jun. 15, 2044 | |
4.450% Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Jul. 15, 2045 | [1] |
4.450% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 4.45% | |
Debt instrument, maturity date | Jul. 15, 2045 | |
4.000% Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 4.00% | |
Debt instrument, maturity date | Oct. 2, 2047 | |
[1] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $136.7 million, $200.4 million and $145.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Partnership's Borrowings Throug
Partnership's Borrowings Through Consolidated CLO Vehicles (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 3.93% | 2.54% | |
Liabilities of Consolidated CLO Vehicles | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 6,863,285 | $ 11,583,607 | |
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 6,531,550 | $ 10,689,240 | |
Weighted Average Interest Rate | 4.20% | 2.35% | |
Weighted Average Remaining Maturity in Years | 7 years 6 months | 4 years 1 month 6 days | |
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 331,735 | $ 894,367 | |
Weighted Average Interest Rate | [1] | ||
[1] | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Senior Secured Notes and Subord
Senior Secured Notes and Subordinated Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Fair Value | $ 6,536,723 | $ 11,339,206 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 3,471,151 | 3,514,815 |
Fair Value | 6,476,434 | 10,595,652 |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Fair Value | 60,289 | 743,554 |
Non-Consolidated Affiliates Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 114,909 | 54,400 |
Fair Value | 56,012 | 41,386 |
Non-Consolidated Affiliates Senior Secured Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 3,250 | 1,000 |
Fair Value | 3,201 | 996 |
Non-Consolidated Affiliates Senior Secured Notes | Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 111,659 | 53,400 |
Fair Value | $ 52,811 | $ 40,390 |
Scheduled Principal Payments fo
Scheduled Principal Payments for Borrowings (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 0 |
2,020 | 0 |
2,021 | 400,000 |
2,022 | 0 |
2,023 | 400,000 |
Thereafter | 9,595,315 |
Total | 10,395,315 |
Operating Borrowings | |
Debt Instrument [Line Items] | |
2,019 | 0 |
2,020 | 0 |
2,021 | 400,000 |
2,022 | 0 |
2,023 | 400,000 |
Thereafter | 2,732,030 |
Total | 3,532,030 |
Blackstone Fund Facilities CLO Vehicles | |
Debt Instrument [Line Items] | |
2,019 | 0 |
2,020 | 0 |
2,022 | 0 |
Thereafter | 6,863,285 |
Total | $ 6,863,285 |
Income Before Provision for Tax
Income Before Provision for Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | [3] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||||||||||||||
Income Before Provision for Taxes | $ (49,352) | $ 975,786 | $ 1,689,708 | $ 896,799 | $ 1,400,130 | $ 894,295 | $ 764,587 | $ 1,059,077 | $ 3,512,941 | $ 4,118,089 | $ 2,381,604 | |||
Domestic Tax Authority | ||||||||||||||
Income Taxes [Line Items] | ||||||||||||||
Income Before Provision for Taxes | 3,308,202 | 3,956,339 | 2,214,974 | |||||||||||
Foreign Tax Authority | ||||||||||||||
Income Taxes [Line Items] | ||||||||||||||
Income Before Provision for Taxes | $ 204,739 | $ 161,750 | $ 166,630 | |||||||||||
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | |||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | |||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". |
Provision (Benefit) for Income
Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Federal Income Tax | $ 73,525 | $ 31,457 | $ 32,383 |
Foreign Income Tax | 42,128 | 36,083 | 17,322 |
State and Local Income Tax | 53,961 | 40,507 | 32,572 |
Current Income Tax Expense (Benefit), Total | 169,614 | 108,047 | 82,277 |
Federal Income Tax | 59,924 | 613,518 | 42,042 |
Foreign Income Tax | (2,518) | (34) | 363 |
State and Local Income Tax | 22,370 | 21,616 | 7,680 |
Deferred Income Tax Expense (Benefit), Total | 79,776 | 635,100 | 50,085 |
Provision for Taxes | $ 249,390 | $ 743,147 | $ 132,362 |
Summary of Tax Positions (Detai
Summary of Tax Positions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | [3] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax [Line Items] | ||||||||||||||
Income Before Provision for Taxes | $ (49,352) | $ 975,786 | $ 1,689,708 | $ 896,799 | $ 1,400,130 | $ 894,295 | $ 764,587 | $ 1,059,077 | $ 3,512,941 | $ 4,118,089 | $ 2,381,604 | |||
Provision for Taxes | $ 249,390 | $ 743,147 | $ 132,362 | |||||||||||
Effective Income Tax Rate | 7.10% | 18.00% | 5.60% | |||||||||||
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | |||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | |||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". |
Reconciliations of Effective In
Reconciliations of Effective Income Tax Rate to Federal Statutory Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule of Effective Tax Rate Reconciliation [Line Items] | ||||
Statutory U.S. Federal Income Tax Rate | 21.00% | 35.00% | 35.00% | |
Income Passed Through to Common Unitholders and Non-Controlling Interest Holders | [1] | (15.50%) | (25.90%) | (28.60%) |
State and Local Income Taxes | 1.80% | 1.50% | 1.30% | |
Equity-Based Compensation | (0.10%) | (0.20%) | ||
Impact of the Tax Reform Bill | 8.30% | |||
Other | (0.20%) | (0.80%) | (1.90%) | |
Effective Income Tax Rate | 7.10% | 18.00% | 5.60% | |
[1] | Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership's unitholders and the non-controlling interest holders. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||||
Statutory U.S. Federal Income Tax Rate | 21.00% | 35.00% | 35.00% | |||
Tax cuts and jobs act of 2017 incomplete accounting change in tax rate net deferred tax assets | $ 500,600,000 | $ 500,600,000 | ||||
Net adjustment of deferred income tax expense | 500,600,000 | |||||
Tax cuts and jobs act of 2017 complete accounting change in tax rate deferred tax liability provisional income tax benefit | 160,300,000 | 160,300,000 | ||||
Tax cuts and jobs act of 2017 complete accounting change in tax rate deferred tax liability | 403,900,000 | $ 403,900,000 | ||||
Impact of the Tax Reform Bill | 8.30% | |||||
Amortization period for tax basis intangibles, years | 15 years | |||||
Taxable loss of partnership | 18,600,000 | $ 18,600,000 | $ 10,300,000 | $ 43,200,000 | ||
Tax credit utilized | $ 10,300,000 | |||||
Tax credit carryforward | $ 0 | |||||
Unrecognized tax benefits that if recognized would affect the annual effective rate | 11,500,000 | 20,900,000 | 11,500,000 | |||
Interest expense accrued | (400,000) | 1,800,000 | (400,000) | (4,100,000) | ||
Accrued Penalties | 0 | $ 0 | 0 | $ 0 | ||
Reduction of Tax Receivable Agreement Liability | 403,855,000 | |||||
Tax Cuts and Jobs Act | ||||||
Income Taxes [Line Items] | ||||||
Reduction of Tax Receivable Agreement Liability | $ 403,900,000 | $ 403,900,000 |
Summary of Tax Effects of Tempo
Summary of Tax Effects of Temporary Differences (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Fund Management Fees | $ 6,955 | $ 9,938 |
Equity-Based Compensation | 69,484 | 54,699 |
Amortization and Depreciation | 768,984 | 754,924 |
Net Operating Loss Carry Forward | 8,885 | |
Total Deferred Tax Assets | 845,423 | 828,446 |
Deferred Tax Liabilities | ||
Unrealized Gains from Investments | 71,472 | 65,883 |
Other | 34,469 | 36,593 |
Total Deferred Tax Liabilities | 105,941 | 102,476 |
Net Deferred Tax Assets | $ 739,482 | $ 725,970 |
Unrecognized Tax Benefits Exclu
Unrecognized Tax Benefits Excluding Related Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits - January 1 | $ 11,454 | $ 3,581 | $ 15,698 |
Additions based on Tax Positions Related to Current Year | 902 | ||
Reductions for Tax Positions of Current Year | (851) | ||
Additions for Tax Positions of Prior Years | 9,671 | 11,167 | |
Reductions for Tax Positions of Prior Years | (323) | (1,860) | (7,837) |
Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations | (3,774) | ||
Settlements | (1,382) | (357) | |
Exchange Rate Fluctuations | 62 | (52) | (200) |
Unrecognized Tax Benefits - December 31 | $ 20,864 | $ 11,454 | $ 3,581 |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Common Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | [3] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Earnings Per Share [Line Items] | ||||||||||||||||||||||
Net Income Attributable to The Blackstone Group L.P., Basic | $ (10,868) | $ 442,742 | $ 742,042 | $ 367,872 | $ 304,138 | $ 377,920 | $ 337,407 | $ 451,909 | $ 1,541,788 | $ 1,471,374 | $ 1,039,014 | |||||||||||
Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units | 1,185,799 | 828,102 | ||||||||||||||||||||
Net Income Attributable to The Blackstone Group L.P., Diluted | $ 2,727,587 | $ 1,471,374 | $ 1,867,116 | |||||||||||||||||||
Weighted-Average Common Units Outstanding, Basic | 678,850,245 | 665,453,198 | 649,475,264 | |||||||||||||||||||
Weighted-Average Unvested Deferred Restricted Common Units | 226,487 | 793,648 | 1,445,277 | |||||||||||||||||||
Weighted-Average Blackstone Holdings Partnership Units | 527,886,114 | 544,194,049 | ||||||||||||||||||||
Weighted-Average Common Units Outstanding, Diluted | 1,206,962,846 | 666,246,846 | 1,195,114,590 | |||||||||||||||||||
Net Income Per Common Unit, Basic | $ (0.02) | $ 0.65 | $ 1.09 | $ 0.55 | $ 0.45 | $ 0.57 | $ 0.51 | $ 0.68 | $ 2.27 | $ 2.21 | $ 1.60 | |||||||||||
Net Income Per Common Unit, Diluted | (0.02) | 0.64 | 1.09 | 0.53 | 0.45 | 0.55 | 0.50 | 0.68 | 2.26 | 2.21 | 1.56 | |||||||||||
Distributions Declared Per Common Unit | $ 0.64 | [4] | $ 0.58 | [4] | $ 0.35 | [4] | $ 0.85 | [4] | $ 0.44 | [4] | $ 0.54 | [4] | $ 0.87 | [4] | $ 0.47 | [4] | $ 2.42 | [5] | $ 2.32 | [5] | $ 1.66 | [5] |
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | |||||||||||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | |||||||||||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | |||||||||||||||||||||
[4] | Distributions declared reflects the calendar date of the declaration of each distribution. | |||||||||||||||||||||
[5] | Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
Summary of Anti-Dilutive Securi
Summary of Anti-Dilutive Securities (Detail) | 12 Months Ended |
Dec. 31, 2017shares | |
Blackstone Partnership Units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Weighted-Average Units | 533,982,613 |
Net Income Per Common Unit - Ad
Net Income Per Common Unit - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 16, 2018 | |
Unit Repurchase Program [Line Items] | ||||
Amount remaining available for repurchases | $ 458,500,000 | |||
Common stock repurchased, units | 16,000,000 | 0 | 0 | |
Common stock repurchased, cost | $ 541,500,000 | |||
Blackstone | ||||
Unit Repurchase Program [Line Items] | ||||
Amount authorized to repurchase under unit repurchase program | $ 1,000,000,000 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Partnership grant units | 172,155,134 | |||
Compensation expense in relation to equity-based awards | $ 366,928 | $ 338,687 | $ 323,651 | |
Tax benefits in relation to equity-based awards | 59,000 | 47,100 | 33,800 | |
Estimated unrecognized compensation expense related to unvested awards | $ 846,500 | |||
Weighted-average period for recognized compensation expense related to unvested awards, years | 3 years 9 months 18 days | |||
Total vested and unvested outstanding units | 1,196,679,968 | |||
Phantom units vesting period | 2 years 6 months | |||
Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total outstanding unvested phantom units | 49,155 | |||
Assumed forfeiture rate | 9.20% | |||
Payment in settlement of phantom units | $ 200 | $ 300 | $ 200 | |
Phantom Share Units (PSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Phantom units vesting period | 1 year | |||
Phantom Share Units (PSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Phantom units vesting period | 5 years | |||
Equity Settled Awards Deferred Restricted Common Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 1 year | |||
Assumed forfeiture rate | 1.00% | |||
Per unit discount | $ 0.50 | |||
Equity Settled Awards Deferred Restricted Common Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 5 years | |||
Assumed forfeiture rate | 12.50% | |||
Per unit discount | $ 10.88 | |||
Blackstone Partnership Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 1 year | |||
Assumed forfeiture rate | 6.60% | |||
Blackstone Partnership Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 7 years | |||
Assumed forfeiture rate | 9.20% |
Summary of Status of Partnershi
Summary of Status of Partnership's Unvested Equity-Based Awards (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Blackstone | Blackstone Partnership Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 30,023,189 |
Granted (Units) | shares | 13,011,587 |
Vested (Units) | shares | (9,350,183) |
Forfeited (Units) | shares | (2,130,466) |
Ending Balance | shares | 31,554,127 |
Beginning Balance | $ / shares | $ 35.26 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 32.80 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 34.35 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 37.15 |
Ending Balance | $ / shares | $ 34.38 |
Blackstone Group L P | Equity Settled Awards Deferred Restricted Common Units And Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 9,019,974 |
Granted (Units) | shares | 5,234,541 |
Vested (Units) | shares | (4,538,236) |
Forfeited (Units) | shares | (404,011) |
Ending Balance | shares | 9,312,268 |
Beginning Balance | $ / shares | $ 30.03 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 32.61 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 30.02 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 30.85 |
Ending Balance | $ / shares | $ 31.43 |
Blackstone Group L P | Cash Settled Awards Phantom Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 44,196 |
Granted (Units) | shares | 9,408 |
Vested (Units) | shares | (6,796) |
Ending Balance | shares | 46,808 |
Beginning Balance | $ / shares | $ 31.85 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 36.87 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 35.98 |
Ending Balance | $ / shares | $ 34.66 |
Unvested Units, After Expected
Unvested Units, After Expected Forfeitures (Detail) | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Blackstone Holdings Partnership Units (Units) | 27,284,548 |
Deferred Restricted Blackstone Common Units (Units) | 8,034,354 |
Total Equity-Based Awards (Units) | 35,318,902 |
Phantom Units (Units) | 38,474 |
Blackstone Holdings Partnership Units (Weighted-Average Service Period in Years) | 3 years 6 months |
Deferred Restricted Blackstone Common Units (Weighted-Average Service in Years) | 2 years 2 months 12 days |
Total Equity-Based Awards (Weighted-Average Service Period in Years) | 3 years 2 months 12 days |
Phantom Units (Weighted-Average Service Period in Years) | 2 years 6 months |
Due from Affiliates and Due to
Due from Affiliates and Due to Affiliates (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Management Fees, Performance Revenues, Reimbursable Expenses and other receivables from Non-Consolidated Entities and Portfolio Companies | $ 1,520,100 | $ 1,616,148 |
Due From Certain Non-Controlling Interest Holders and Blackstone Employees | 462,475 | 410,877 |
Accrual for Potential Clawback of Previously Distributed Performance Allocations | 11,548 | 1,112 |
Due from Affiliates, total | 1,994,123 | 2,028,137 |
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | 796,902 | 715,734 |
Due to Non-Consolidated Entities | 99,728 | 90,038 |
Due to Note-Holders of Consolidated CLO Vehicles | 56,012 | 41,386 |
Due to Certain Non-Controlling Interest Holders and Blackstone Employees | 53,613 | 87,829 |
Accrual for Potential Repayment of Previously Received Performance Allocations | 29,521 | 2,171 |
Due to Affiliates, total | $ 1,035,776 | $ 937,158 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Investments | $ 20,377,031 | $ 24,434,049 | |
Partnership Unit to Blackstone Common Unit ratio | 100.00% | ||
Cash saving in tax receivable agreements, percentage | 85.00% | ||
Expected future payments under the tax receivable agreements | $ 796,900 | ||
Expected future payments under the tax receivable agreements in years | 15 years | ||
After-tax net present value estimated payments | $ 309,200 | ||
After-tax net present value discount rate assumption | 15.00% | ||
Payments made under tax receivable agreements and related tax benefits | $ 87,300 | ||
Consolidated Blackstone Funds | |||
Related Party Transaction [Line Items] | |||
Investments | 8,376,338 | 12,954,121 | |
Tax Cuts and Jobs Act | |||
Related Party Transaction [Line Items] | |||
Reversal of tax receivable agreement liability | 403,900 | ||
Founder, senior managing directors, employees and certain other related parties | |||
Related Party Transaction [Line Items] | |||
Net Income Attributable to Non-Controlling Interests | 63,600 | 113,900 | $ 79,700 |
Founder, senior managing directors, employees and certain other related parties | Consolidated Blackstone Funds | |||
Related Party Transaction [Line Items] | |||
Investments | 842,900 | 813,200 | |
Affiliates | |||
Related Party Transaction [Line Items] | |||
Interest from loans to affiliates | $ 5,400 | $ 3,400 | $ 1,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Commitments And Contingencies [Line Items] | |||
Rent expense | $ 109.9 | $ 104.7 | $ 97.2 |
Leases | 7.9 | $ 8.9 | |
General partner capital funding | 2,600 | ||
Consolidated entities net assets restricted as to payment of cash dividends and advances to partnership | 39.4 | ||
Total investments at risk in respect of guarantees extended | $ 31.3 | ||
Contingent obligations currently anticipated to expire end | 2,028 | ||
Provision for cash clawback | $ 675.3 | ||
Contingent Obligations (Clawback) | $ 7,000 | ||
Maximum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Operating lease expiration year | 2,030 | ||
Blackstone Holdings | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Loans held By employees for investment guaranteed | $ 198.3 | ||
Contingent Obligations (Clawback) | 6,400 | ||
Consolidated Blackstone Funds | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Funds signed investment commitments | 94.5 | ||
Consolidated Blackstone Funds | Portfolio Company Acquisition | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Signed investment commitments for portfolio company acquisitions in process of closing | $ 24.9 |
Aggregate Minimum Future Paymen
Aggregate Minimum Future Payments, Net of Sublease Income, Required on Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2,019 | $ 78,506 |
2,020 | 72,191 |
2,021 | 80,914 |
2,022 | 79,094 |
2,023 | 77,248 |
Thereafter | 273,347 |
Total | $ 661,300 |
Clawback Obligations by Segment
Clawback Obligations by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | $ 29,521 | $ 2,171 | ||
Blackstone Holdings | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 30,421 | 1,059 | ||
Current And Former Blackstone Personnel | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | (900) | [1] | 1,112 | |
Real Estate Segment | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 25,823 | |||
Real Estate Segment | Blackstone Holdings | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 15,770 | |||
Real Estate Segment | Current And Former Blackstone Personnel | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | [1] | 10,053 | ||
Private Equity Segment | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 848 | |||
Private Equity Segment | Blackstone Holdings | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 13,296 | |||
Private Equity Segment | Current And Former Blackstone Personnel | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | [1] | (12,448) | ||
Credit Segment | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 2,850 | 2,171 | ||
Credit Segment | Blackstone Holdings | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | 1,355 | 1,059 | ||
Credit Segment | Current And Former Blackstone Personnel | ||||
Product Liability Contingency [Line Items] | ||||
Clawback obligations | $ 1,495 | [1] | $ 1,112 | |
[1] | The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of business segments | 4 | 4 |
Financial Data of Segments (Det
Financial Data of Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Other Operating Expenses | $ (672,317) | $ 133,229 | $ (54,753) |
Realized Performance Revenues | 1,934,047 | 3,814,325 | 1,645,367 |
Realized Performance Compensation | (744,992) | (1,387,244) | (534,050) |
Segment Assets | 28,924,650 | 34,415,919 | |
Management and Advisory Fees, Net | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,027,796 | 2,751,322 | 2,464,290 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Fee Related Performance Revenues | 123,836 | 169,445 | 101,430 |
Fee Related Compensation | (1,216,146) | (1,185,639) | (1,054,438) |
Other Operating Expenses | (488,328) | (424,866) | (431,836) |
Fee Related Earnings | 1,455,814 | 1,329,731 | 1,078,149 |
Realized Performance Revenues | 1,811,771 | 3,647,807 | 1,545,586 |
Realized Performance Compensation | (678,141) | (1,297,611) | (483,257) |
Realized Principal Investment Income (Loss) | 236,058 | 436,194 | 199,869 |
Total Net Realizations | 1,369,688 | 2,786,390 | 1,262,198 |
Total Segment Distributable Earnings | 2,825,502 | 4,116,121 | 2,340,347 |
Segment Assets | 20,638,826 | 19,988,220 | |
Operating Segments | Management and Advisory Fees, Net | |||
Segment Reporting Information [Line Items] | |||
Base Management Fees | 2,844,325 | 2,680,391 | 2,397,779 |
Transaction, Advisory and Other Fees, Net | 229,498 | 156,816 | 144,858 |
Management Fee Offsets | (37,371) | (66,416) | (79,644) |
Revenues | 3,036,452 | 2,770,791 | 2,462,993 |
Operating Segments | Real Estate Segment | |||
Segment Reporting Information [Line Items] | |||
Fee Related Performance Revenues | 124,502 | 79,500 | 18,178 |
Fee Related Compensation | (459,430) | (437,311) | (379,331) |
Other Operating Expenses | (146,260) | (136,042) | (137,581) |
Fee Related Earnings | 645,282 | 445,185 | 384,429 |
Realized Performance Revenues | 914,984 | 2,141,374 | 1,214,931 |
Realized Performance Compensation | (284,319) | (751,526) | (335,147) |
Realized Principal Investment Income (Loss) | 92,525 | 255,903 | 122,712 |
Total Net Realizations | 723,190 | 1,645,751 | 1,002,496 |
Total Segment Distributable Earnings | 1,368,472 | 2,090,936 | 1,386,925 |
Segment Assets | 7,521,117 | 7,585,002 | |
Operating Segments | Real Estate Segment | Management and Advisory Fees, Net | |||
Segment Reporting Information [Line Items] | |||
Base Management Fees | 985,399 | 872,191 | 795,161 |
Transaction, Advisory and Other Fees, Net | 152,513 | 82,781 | 95,324 |
Management Fee Offsets | (11,442) | (15,934) | (7,322) |
Revenues | 1,126,470 | 939,038 | 883,163 |
Operating Segments | Private Equity Segment | |||
Segment Reporting Information [Line Items] | |||
Fee Related Compensation | (375,446) | (347,562) | (298,149) |
Other Operating Expenses | (133,096) | (120,997) | (130,685) |
Fee Related Earnings | 321,342 | 295,876 | 131,232 |
Realized Performance Revenues | 757,406 | 1,157,188 | 245,268 |
Realized Performance Compensation | (318,167) | (404,544) | (110,882) |
Realized Principal Investment Income (Loss) | 109,731 | 154,837 | 73,377 |
Total Net Realizations | 548,970 | 907,481 | 207,763 |
Total Segment Distributable Earnings | 870,312 | 1,203,357 | 338,995 |
Segment Assets | 7,548,544 | 6,369,491 | |
Operating Segments | Private Equity Segment | Management and Advisory Fees, Net | |||
Segment Reporting Information [Line Items] | |||
Base Management Fees | 785,223 | 724,818 | 555,593 |
Transaction, Advisory and Other Fees, Net | 58,165 | 57,624 | 39,283 |
Management Fee Offsets | (13,504) | (18,007) | (34,810) |
Revenues | 829,884 | 764,435 | 560,066 |
Operating Segments | Hedge Fund Solutions Segment | |||
Segment Reporting Information [Line Items] | |||
Fee Related Compensation | (162,172) | (146,924) | (153,645) |
Other Operating Expenses | (77,772) | (68,265) | (75,870) |
Fee Related Earnings | 282,925 | 303,746 | 293,282 |
Realized Performance Revenues | 42,419 | 154,343 | 42,177 |
Realized Performance Compensation | (21,792) | (40,707) | (15,029) |
Realized Principal Investment Income (Loss) | 17,039 | 9,074 | (7,224) |
Total Net Realizations | 37,666 | 122,710 | 19,924 |
Total Segment Distributable Earnings | 320,591 | 426,456 | 313,206 |
Segment Assets | 1,976,809 | 2,107,441 | |
Operating Segments | Hedge Fund Solutions Segment | Management and Advisory Fees, Net | |||
Segment Reporting Information [Line Items] | |||
Base Management Fees | 519,782 | 516,048 | 521,736 |
Transaction, Advisory and Other Fees, Net | 3,180 | 2,980 | 1,061 |
Management Fee Offsets | (93) | (93) | |
Revenues | 522,869 | 518,935 | 522,797 |
Operating Segments | Credit Segment | |||
Segment Reporting Information [Line Items] | |||
Fee Related Performance Revenues | (666) | 89,945 | 83,252 |
Fee Related Compensation | (219,098) | (253,842) | (223,313) |
Other Operating Expenses | (131,200) | (99,562) | (87,700) |
Fee Related Earnings | 206,265 | 284,924 | 269,206 |
Realized Performance Revenues | 96,962 | 194,902 | 43,210 |
Realized Performance Compensation | (53,863) | (100,834) | (22,199) |
Realized Principal Investment Income (Loss) | 16,763 | 16,380 | 11,004 |
Total Net Realizations | 59,862 | 110,448 | 32,015 |
Total Segment Distributable Earnings | 266,127 | 395,372 | 301,221 |
Segment Assets | 3,592,356 | 3,926,286 | |
Operating Segments | Credit Segment | Management and Advisory Fees, Net | |||
Segment Reporting Information [Line Items] | |||
Base Management Fees | 553,921 | 567,334 | 525,289 |
Transaction, Advisory and Other Fees, Net | 15,640 | 13,431 | 9,190 |
Management Fee Offsets | (12,332) | (32,382) | (37,512) |
Revenues | $ 557,229 | $ 548,383 | $ 496,967 |
Reconciliation of Total Segment
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes and Total Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Revenues | $ 504,978 | $ 1,926,580 | $ 2,632,570 | $ 1,769,131 | $ 1,959,213 | [3] | $ 1,735,358 | $ 1,535,726 | $ 1,914,718 | $ 6,833,259 | $ 7,145,015 | $ 5,146,299 | |||
Less: Unrealized Principal Investment (Income) Loss | 49,917 | 42,605 | 77,314 | ||||||||||||
Less: Interest and Dividend Revenue | 171,947 | 139,696 | 95,724 | ||||||||||||
Total Expenses | (495,096) | (1,017,632) | (1,016,381) | (982,931) | (1,044,901) | [3] | (904,511) | (881,193) | (921,773) | 3,512,040 | 3,752,378 | 2,949,445 | |||
Less: Interest Expense | 163,990 | 197,486 | 152,654 | ||||||||||||
Total Other Income | (59,234) | 66,838 | 73,519 | 110,599 | 485,818 | [3] | 63,448 | 110,054 | 66,132 | 191,722 | 725,452 | 184,750 | |||
Income Before Provision for Taxes | (49,352) | $ 975,786 | $ 1,689,708 | $ 896,799 | 1,400,130 | [3] | $ 894,295 | $ 764,587 | $ 1,059,077 | 3,512,941 | 4,118,089 | 2,381,604 | |||
Total Assets | 28,924,650 | 34,415,919 | 28,924,650 | 34,415,919 | |||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Revenues | [4] | 5,208,117 | 7,024,237 | 4,309,878 | |||||||||||
Total Expenses | [5] | 2,382,615 | 2,908,116 | 1,969,531 | |||||||||||
Income Before Provision for Taxes | 2,825,502 | 4,116,121 | 2,340,347 | ||||||||||||
Total Assets | 20,638,826 | 19,988,220 | 20,638,826 | 19,988,220 | |||||||||||
Consolidation Adjustments and Reconciling Items | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Less: Unrealized Performance Allocations | [6] | (561,163) | 105,432 | (530,120) | |||||||||||
Less: Unrealized Principal Investment (Income) Loss | [7] | 65,851 | 131,206 | (20,421) | |||||||||||
Less: Interest and Dividend Revenue | [8] | (181,763) | (142,920) | (96,399) | |||||||||||
Management and Advisory Fees, Net | [9] | (89,468) | 140,051 | (54,712) | |||||||||||
Impact of Consolidation | [10] | (277,406) | (322,729) | (117,965) | |||||||||||
Amortization of Intangibles | [11] | 1,548 | 1,548 | 1,548 | |||||||||||
Transaction-Related Charges | [12] | (588,710) | (40,153) | (20,635) | |||||||||||
Less: Unrealized Performance Allocations Compensation | [13] | (319,742) | (103,794) | (333,528) | |||||||||||
Less: Equity Based Compensation | [14] | (158,220) | (107,110) | (79,571) | |||||||||||
Less: Interest Expense | [15] | (159,838) | (192,838) | (148,022) | |||||||||||
Impact of Consolidation | [10] | (112,354) | (133,081) | (52,586) | |||||||||||
Amortization of Intangibles | [11] | (58,446) | (46,749) | (82,918) | |||||||||||
Transaction-Related Charges | [12] | (326,794) | (267,477) | (285,572) | |||||||||||
Transaction-Related Charges | [12] | (403,855) | |||||||||||||
Less: Unrealized Performance Allocations | [6] | (561,163) | 105,432 | (530,120) | |||||||||||
Less: Unrealized Principal Investment (Income) Loss | [7] | 65,851 | 131,206 | (20,421) | |||||||||||
Less: Interest and Dividend Revenue | [8] | (181,763) | (142,920) | (96,399) | |||||||||||
Less: Other Revenue | [9] | (89,468) | 140,051 | (54,712) | |||||||||||
Plus: Unrealized Performance Allocations Compensation | [13] | 319,742 | 103,794 | 333,528 | |||||||||||
Plus: Equity Based Compensation | [14] | 158,220 | 107,110 | 79,571 | |||||||||||
Plus: Interest Expense | [15] | 159,838 | 192,838 | 148,022 | |||||||||||
Amortization of Intangibles | [11] | 59,994 | 48,297 | 84,466 | |||||||||||
Transaction-Related Charges | [12] | (261,916) | (176,531) | 264,937 | |||||||||||
Segment Adjustment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Revenues | 5,969 | 6,787 | 2,283 | ||||||||||||
Total Expenses | 5,969 | 6,787 | 2,283 | ||||||||||||
Impact of Consolidation | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Other Income | [10] | (191,722) | (321,597) | (184,750) | |||||||||||
Income Before Provision for Taxes | [10] | (356,774) | (511,245) | $ (250,129) | |||||||||||
Total Assets | [10] | $ (8,285,824) | $ (14,427,699) | $ (8,285,824) | $ (14,427,699) | ||||||||||
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | ||||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | ||||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||||
[4] | Total Segment Revenues is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Management and Advisory Fees, Net $ 3,036,452 $ 2,770,791 $ 2,462,993 Total Segment Fee Related Performance Revenues 123,836 169,445 101,430 Total Segment Realized Performance Revenues 1,811,771 3,647,807 1,545,586 Total Segment Realized Principal Investment Income 236,058 436,194 199,869 Total Segment Revenues $ 5,208,117 $ 7,024,237 $ 4,309,878 | ||||||||||||||
[5] | Total Segment Expenses is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Fee Related Compensation $ 1,216,146 $ 1,185,639 $ 1,054,438 Total Segment Realized Performance Compensation 678,141 1,297,611 483,257 Total Segment Other Operating Expenses 488,328 424,866 431,836 Total Segment Expenses $ 2,382,615 $ 2,908,116 $ 1,969,531 | ||||||||||||||
[6] | This adjustment removes Unrealized Performance Revenues on a segment basis. | ||||||||||||||
[7] | This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. | ||||||||||||||
[8] | This adjustment removes Interest and Dividend Revenue on a segment basis. | ||||||||||||||
[9] | This adjustment removes Other Revenue on a segment basis. | ||||||||||||||
[10] | The Impact of Consolidation adjustment represents the effect of consolidating Blackstone Funds, the elimination of Blackstone's interest in these funds, the increase to revenue representing the reimbursement of certain expenses by Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the segment presentation, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. | ||||||||||||||
[11] | Amortization of intangibles consists of the amortization of transaction-related intangibles including intangibles associated with Blackstone's investment in Pátria, which is accounted for under the equity method. | ||||||||||||||
[12] | Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone's initial public offering. 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 and any gains or losses associated with these corporate actions. For the year ended December 31, 2018, Transaction-Related Charges included $580.9 million of Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | ||||||||||||||
[13] | This adjustment removes Unrealized Performance Allocations Compensation. | ||||||||||||||
[14] | This adjustment removes Equity-Based Compensation on a segment basis. | ||||||||||||||
[15] | This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. |
Reconciliation of Total Segme_2
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes and Total Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | [3] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||||||||||||||
Transaction-Related Charges | $ 580,900 | ||||||||||||||
Total Segment Realized Performance Revenues | 1,934,047 | $ 3,814,325 | $ 1,645,367 | ||||||||||||
Total Revenues | $ 504,978 | $ 1,926,580 | $ 2,632,570 | $ 1,769,131 | $ 1,959,213 | $ 1,735,358 | $ 1,535,726 | $ 1,914,718 | 6,833,259 | 7,145,015 | 5,146,299 | ||||
Total Segment Realized Performance Compensation | 744,992 | 1,387,244 | 534,050 | ||||||||||||
Total Segment Other Operating Expenses | 594,873 | 488,582 | 541,624 | ||||||||||||
Total Expenses | $ (495,096) | $ (1,017,632) | $ (1,016,381) | $ (982,931) | $ (1,044,901) | $ (904,511) | $ (881,193) | $ (921,773) | 3,512,040 | 3,752,378 | 2,949,445 | ||||
Management and Advisory Fees, Net | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 3,027,796 | 2,751,322 | 2,464,290 | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Fee Related Performance Revenues | 123,836 | 169,445 | 101,430 | ||||||||||||
Total Segment Realized Performance Revenues | 1,811,771 | 3,647,807 | 1,545,586 | ||||||||||||
Total Segment Realized Principal Investment Income | 236,058 | 436,194 | 199,869 | ||||||||||||
Total Revenues | [4] | 5,208,117 | 7,024,237 | 4,309,878 | |||||||||||
Total Segment Fee Related Compensation | 1,216,146 | 1,185,639 | 1,054,438 | ||||||||||||
Total Segment Realized Performance Compensation | 678,141 | 1,297,611 | 483,257 | ||||||||||||
Total Segment Other Operating Expenses | 488,328 | 424,866 | 431,836 | ||||||||||||
Total Expenses | [5] | 2,382,615 | 2,908,116 | 1,969,531 | |||||||||||
Operating Segments | Management and Advisory Fees, Net | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 3,036,452 | $ 2,770,791 | $ 2,462,993 | ||||||||||||
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | ||||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | ||||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||||
[4] | Total Segment Revenues is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Management and Advisory Fees, Net $ 3,036,452 $ 2,770,791 $ 2,462,993 Total Segment Fee Related Performance Revenues 123,836 169,445 101,430 Total Segment Realized Performance Revenues 1,811,771 3,647,807 1,545,586 Total Segment Realized Principal Investment Income 236,058 436,194 199,869 Total Segment Revenues $ 5,208,117 $ 7,024,237 $ 4,309,878 | ||||||||||||||
[5] | Total Segment Expenses is comprised of the following: Year Ended December 31, 2018 2017 2016 Total Segment Fee Related Compensation $ 1,216,146 $ 1,185,639 $ 1,054,438 Total Segment Realized Performance Compensation 678,141 1,297,611 483,257 Total Segment Other Operating Expenses 488,328 424,866 431,836 Total Segment Expenses $ 2,382,615 $ 2,908,116 $ 1,969,531 |
Reconciliation of Total Segme_3
Reconciliation of Total Segments to Reported on the Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||
Investment Income - Realized Performance Allocations | $ 1,876,507 | $ 3,571,811 | $ 1,495,439 | |
Realized Performance Revenues | 1,934,047 | 3,814,325 | 1,645,367 | |
Compensation and Benefits Compensation | 1,609,957 | 1,442,485 | 1,335,408 | |
Incentive Fee Compensation | 33,916 | 105,279 | 68,921 | |
Realized Performance Allocations Compensation | 711,076 | 1,281,965 | 465,129 | |
Total Compensation and Benefits | 2,354,949 | 2,829,729 | 1,869,458 | |
General, Administrative and Other | 594,873 | 488,582 | 541,624 | |
Investment Income - Realized Performance Allocations | 1,876,507 | 3,571,811 | 1,495,439 | |
GAAP | 1,934,047 | 3,814,325 | 1,645,367 | |
Incentive Fee Compensation | 33,916 | 105,279 | 68,921 | |
Realized Performance Allocations Compensation | 711,076 | 1,281,965 | 465,129 | |
GAAP | 744,992 | 1,387,244 | 534,050 | |
Investment Income Realized | 415,862 | 635,769 | 278,737 | |
Interest and Dividend Revenue | 171,947 | 139,696 | 95,724 | |
Interest Expense | (163,990) | (197,486) | (152,654) | |
Investment Income (Loss) | 7,957 | (57,790) | (56,930) | |
Total Segment | (744,992) | (1,387,244) | (534,050) | |
Management and Advisory Fees, Net | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,027,796 | 2,751,322 | 2,464,290 | |
Incentive Fees | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 57,540 | 242,514 | 149,928 | |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Less: Realized Performance Revenues | (1,811,771) | (3,647,807) | (1,545,586) | |
Realized Performance Revenues | 123,836 | 169,445 | 101,430 | |
Realized Performance Revenues | 1,811,771 | 3,647,807 | 1,545,586 | |
General, Administrative and Other | 488,328 | 424,866 | 431,836 | |
GAAP | 1,811,771 | 3,647,807 | 1,545,586 | |
GAAP | 678,141 | 1,297,611 | 483,257 | |
Investment Income Realized | 236,058 | 436,194 | 199,869 | |
Total Compensation and Benefits | 1,216,146 | 1,185,639 | 1,054,438 | |
Realized Performance Revenues | (123,836) | (169,445) | (101,430) | |
Investment Income (Loss) | 21,925 | (49,918) | (51,623) | |
Total Segment | 1,811,771 | 3,647,807 | 1,545,586 | |
Less: Fee Related Performance Compensation | (53,844) | (75,933) | (44,969) | |
Less: Equity-based compensation - Performance Compensation Related | (13,007) | (13,700) | (5,824) | |
Total Segment | (678,141) | (1,297,611) | (483,257) | |
Operating Segments | Management and Advisory Fees, Net | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,036,452 | 2,770,791 | 2,462,993 | |
Consolidation Adjustments and Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | (89,468) | 140,051 | (54,712) |
Less: Equity-Based Compensation | [2] | (158,220) | (107,110) | (79,571) |
Interest and Dividend Revenue | [3] | (181,763) | (142,920) | (96,399) |
Interest Expense | [4] | 159,838 | 192,838 | 148,022 |
Segment Adjustment | ||||
Segment Reporting Information [Line Items] | ||||
Realized Performance Revenues | [5] | 1,560 | 2,927 | 1,649 |
General, Administrative and Other | [6] | (106,545) | (63,716) | (109,788) |
Investment Income Realized | [7] | (179,804) | (199,575) | (78,868) |
Total Compensation and Benefits | [8] | (302,442) | (239,369) | (252,192) |
Investment Income (Loss) | [9] | 13,968 | 7,872 | 5,307 |
Total Segment | [5] | 1,560 | 2,927 | 1,649 |
Segment Adjustment | Management and Advisory Fees, Net | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [10] | $ 8,656 | $ 19,469 | $ (1,297) |
[1] | This adjustment removes Other Revenue on a segment basis. | |||
[2] | This adjustment removes Equity-Based Compensation on a segment basis. | |||
[3] | This adjustment removes Interest and Dividend Revenue on a segment basis. | |||
[4] | This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. | |||
[5] | Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. | |||
[6] | Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total Segment measures. | |||
[7] | 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. | |||
[8] | Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures. | |||
[9] | Represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement. | |||
[10] | Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total Segment measures. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [1] | Mar. 31, 2018 | [2] | Dec. 31, 2017 | [3] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Revenues | $ 504,978 | $ 1,926,580 | $ 2,632,570 | $ 1,769,131 | $ 1,959,213 | $ 1,735,358 | $ 1,535,726 | $ 1,914,718 | $ 6,833,259 | $ 7,145,015 | $ 5,146,299 | |||||||||||
Expenses | 495,096 | 1,017,632 | 1,016,381 | 982,931 | 1,044,901 | 904,511 | 881,193 | 921,773 | (3,512,040) | (3,752,378) | (2,949,445) | |||||||||||
Other Income (Loss) | (59,234) | 66,838 | 73,519 | 110,599 | 485,818 | 63,448 | 110,054 | 66,132 | 191,722 | 725,452 | 184,750 | |||||||||||
Income (Loss) Before Provision for Taxes | (49,352) | 975,786 | 1,689,708 | 896,799 | 1,400,130 | 894,295 | 764,587 | 1,059,077 | 3,512,941 | 4,118,089 | 2,381,604 | |||||||||||
Net Income (Loss) | (78,718) | 948,988 | 1,550,977 | 842,304 | 803,540 | 834,783 | 734,979 | 1,001,640 | 3,263,551 | 3,374,942 | 2,249,242 | |||||||||||
Net Income (Loss) Attributable to The Blackstone Group L.P. | $ (10,868) | $ 442,742 | $ 742,042 | $ 367,872 | $ 304,138 | $ 377,920 | $ 337,407 | $ 451,909 | $ 1,541,788 | $ 1,471,374 | $ 1,039,014 | |||||||||||
Net Income (Loss) Per Common Unit | ||||||||||||||||||||||
Common Units, Basic | $ (0.02) | $ 0.65 | $ 1.09 | $ 0.55 | $ 0.45 | $ 0.57 | $ 0.51 | $ 0.68 | $ 2.27 | $ 2.21 | $ 1.60 | |||||||||||
Common Units, Diluted | (0.02) | 0.64 | 1.09 | 0.53 | 0.45 | 0.55 | 0.50 | 0.68 | 2.26 | 2.21 | 1.56 | |||||||||||
Distributions Declared | $ 0.64 | [4] | $ 0.58 | [4] | $ 0.35 | [4] | $ 0.85 | [4] | $ 0.44 | [4] | $ 0.54 | [4] | $ 0.87 | [4] | $ 0.47 | [4] | $ 2.42 | [5] | $ 2.32 | [5] | $ 1.66 | [5] |
[1] | For the three months ended June 30, 2018, Revenues included $580.9 million of Transaction-Related Charges recorded in Other Revenues received upon the conclusion of Blackstone's investment sub-advisory relationship with FS Investments' funds. | |||||||||||||||||||||
[2] | Effective January 1, 2018, Blackstone adopted new GAAP guidance on revenue recognition and implemented a change in accounting principal related to carried interest and incentive allocations, which are now accounted for under the GAAP guidance for equity method investments and are presented within Investment Income in the Consolidated Statements of Operations. All historical results presented have been recast to reflect these changes. A complete description of the changes can be found in Note 2. "Summary of Significant Accounting Policies - Recent Accounting Developments" | |||||||||||||||||||||
[3] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | |||||||||||||||||||||
[4] | Distributions declared reflects the calendar date of the declaration of each distribution. | |||||||||||||||||||||
[5] | Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
Quarterly Financial Data (Paren
Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | ||||
Transaction related charges | $ 580,900 | |||
Reduction of Tax Receivable Agreement Liability | $ 403,855 | |||
Reduction in net deferred tax assets | $ 725,970 | 725,970 | $ 739,482 | |
Tax Cuts and Jobs Act | ||||
Quarterly Financial Information [Line Items] | ||||
Reduction of Tax Receivable Agreement Liability | 403,900 | 403,900 | ||
Reduction in net deferred tax assets | $ 500,600 | $ 500,600 |