Blackstone Investments Portfolio

 

Blackstone Inc, the global leader in alternative investments has diversified portfolio of investments. One peculiarity is that Blackstone has bought an insurance business and uses the long-term, stable insurance premiums to invest in its private equity, real estate, credit and multi-asset investing businesses, according to Wolfteam Ltd.'s analysis:

ASSETS UNDER MANAGEMENT

$1,076.4
2Q'23 2Q'24$67.1 $71.8
$202.8 $237.3
$173.7
$200.5
$287.6
$299.1
$731.1
$808.7
2Q'23 2Q'24$146.7 $174.4
$49.6
$64.4
$188.0
$179.6
$384.3
$418.6
2Q'23 2Q'24
ASSETS UNDER MANAGEMENT
Total AUM
($ in billions)
Fee-Earning AUM
($ in billions)
Perpetual Capital AUM
($ in billions)
Private Equity Real Estate Credit & Insurance Multi-Asset Investing

These long-term insurance premiums make up 418.6 billion USD in assets under management or 45 % of the fee-earning assets under management of Blackstone.

Blackstone made 10.3 billion USD in revenue and 3.6 billion USD in profit in the second quarter 2024. Such revenue and profit makes Blackstone undervalued even taking into account Blackstone's 186.92 billion USD in market capitalization, according to Wolfteam Ltd.'s projections and estimates.

Blackstone's private equity assets under management reached 330.6 billion USD in the second quarter of 2024 or growth of 8 %.

PRIVATE EQUITY
▪ Total AUM: Increased 8% to $330.6 billion with inflows of $12.1 billion in the quarter and $30.2 billion over the LTM.
– Inflows in the quarter included $2.9 billion in Infrastructure and $833 million for the ninth flagship private equity
fund.
– $1.6 billion of capital raised in BXPE, including amounts allocated to other segments.
▪ Capital Deployed: $11.3 billion in the quarter, including Adevinta, Civica, and Tropical Smoothie Cafe, and
$28.6 billion over the LTM.
– Committed an additional $9.2 billion in the quarter, including Hipgnosis, Copeland, and CoreWeave.
▪ Realizations: $7.8 billion in the quarter, including from Refinitiv, Mphasis, and Geo-Young, and $23.7 billion over the
LTM.
▪ Appreciation: Corporate Private Equity appreciated 2.0% in the quarter and 11.3% over the LTM.
– Tactical Opportunities appreciated 1.7% in the quarter and 6.3% over the LTM; Secondaries appreciated 2.0% in
the quarter and 3.1% over the LTM; Infrastructure appreciated 6.3% in the quarter and 21.6% over the LTM.% Change % Change
($ in thousands) 2Q'23 2Q'24 vs. 2Q'23 2Q'23 YTD 2Q'24 YTD vs. 2Q'23 YTD
Management and Advisory Fees, Net 515,689$ 514,851$ (0)% 1,005,461$ 1,016,058$ 1%
Fee Related Performance Revenues - 8,703 n/m - 8,703 n/m
Fee Related Compensation (162,379) (158,068) (3)% (330,105) (320,627) (3)%
Other Operating Expenses (77,423) (87,436) 13% (157,174) (177,471) 13%
Fee Related Earnings 275,887$ 278,050$ 1% 518,182$ 526,663$ 2%
Realized Performance Revenues 220,886 381,797 73% 721,893 831,671 15%
Realized Performance Compensation (90,162) (179,761) 99% (323,759) (400,242) 24%
Realized Principal Investment Income 11,708 5,725 (51)% 45,876 28,154 (39)%
Net Realizations 142,432 207,761 46% 444,010 459,583 4%
Segment Distributable Earnings 418,319$ 485,811$ 16% 962,192$ 986,246$ 2%
Segment Revenues 748,283$ 911,076$ 22% 1,773,230$ 1,884,586$ 6%
Total AUM 305,277,730$ 330,589,586$ 8% 305,277,730$ 330,589,586$ 8%
Fee-Earning AUM 173,736,641$ 200,486,740$ 15% 173,736,641$ 200,486,740$ 15%

Private equity remains the main business line of Blackstone and it is driven currently by the long-term insurance premiums.

Here are Blackstone's real estate and private equity funds' both realized and unrealized investments:

Blackstone | 19
INVESTMENT RECORDS AS OF JUNE 30, 2024(a)($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Realized Total
Real Estate
Pre-BREP 140,714$ -$ -$ n/a 345,190$ 2.5x 345,190$ 2.5x 33% 33%
BREP I (Sep 1994 / Oct 1996) 380,708 - - n/a 1,327,708 2.8x 1,327,708 2.8x 40% 40%
BREP II (Oct 1996 / Mar 1999) 1,198,339 - - n/a 2,531,614 2.1x 2,531,614 2.1x 19% 19%
BREP III (Apr 1999 / Apr 2003) 1,522,708 - - n/a 3,330,406 2.4x 3,330,406 2.4x 21% 21%
BREP IV (Apr 2003 / Dec 2005) 2,198,694 - 3,825 n/a 4,666,129 1.7x 4,669,954 1.7x 12% 12%
BREP V (Dec 2005 / Feb 2007) 5,539,418 - 6,226 n/a 13,463,448 2.3x 13,469,674 2.3x 11% 11%
BREP VI (Feb 2007 / Aug 2011) 11,060,122 - 7,392 n/a 27,758,817 2.5x 27,766,209 2.5x 13% 13%
BREP VII (Aug 2011 / Apr 2015) 13,505,655 1,017,292 2,078,698 0.6x 28,429,380 2.3x 30,508,078 1.9x 20% 14%
BREP VIII (Apr 2015 / Jun 2019) 16,607,865 2,009,039 12,355,770 1.5x 22,291,311 2.3x 34,647,081 1.9x 24% 14%
BREP IX (Jun 2019 / Aug 2022) 21,346,428 3,385,159 24,730,496 1.4x 8,688,793 2.2x 33,419,289 1.5x 58% 14%
*BREP X (Aug 2022 / Feb 2028) 30,639,330 22,661,720 8,511,549 1.1x - n/a 8,511,549 1.1x n/a n/m
Total Global BREP 104,139,981$ 29,073,210$ 47,693,956$ 1.3x 112,832,796$ 2.3x 160,526,752$ 1.9x 17% 15%
BREP Int'l (Jan 2001 / Sep 2005) 824,172€ -€ -€ n/a 1,373,170€ 2.1x 1,373,170€ 2.1x 23% 23%
BREP Int'l II (Sep 2005 / Jun 2008) (e) 1,629,748 - - n/a 2,583,032 1.8x 2,583,032 1.8x 8% 8%
BREP Europe III (Jun 2008 / Sep 2013) 3,205,420 396,691 156,196 0.3x 5,856,192 2.4x 6,012,388 2.0x 18% 13%
BREP Europe IV (Sep 2013 / Dec 2016) 6,676,577 1,104,861 1,073,412 0.8x 10,133,370 1.9x 11,206,782 1.7x 18% 12%
BREP Europe V (Dec 2016 / Oct 2019) 7,992,703 904,320 4,630,379 0.8x 6,758,899 3.8x 11,389,278 1.6x 41% 8%
BREP Europe VI (Oct 2019 / Sep 2023) 9,923,250 3,326,999 8,095,867 1.2x 3,439,595 2.6x 11,535,462 1.4x 72% 13%
*BREP Europe VII (Sep 2023 / Mar 2029) 7,681,989 6,508,115 1,332,487 1.1x - n/a 1,332,487 1.1x n/a n/m
Total BREP Europe 37,933,859€ 12,240,986€ 15,288,341€ 1.0x 30,144,258€ 2.3x 45,432,599€ 1.6x 17% 11%
BREP Asia I (Jun 2013 / Dec 2017) 4,262,075$ 898,228$ 1,672,278$ 1.7x 7,032,407$ 1.9x 8,704,685$ 1.9x 16% 12%
BREP Asia II (Dec 2017 / Mar 2022) 7,354,811 1,310,706 6,641,542 1.2x 1,801,330 1.9x 8,442,872 1.3x 30% 5%
*BREP Asia III (Mar 2022 / Sep 2027) 8,210,352 6,834,894 1,294,586 1.0x - n/a 1,294,586 1.0x n/a (17)%
Total BREP Asia 19,827,238$ 9,043,828$ 9,608,406$ 1.2x 8,833,737$ 1.9x 18,442,143$ 1.5x 17% 8%
BREP Co-Investment (f) 7,396,015 100,106 959,827 2.0x 15,227,390 2.2x 16,187,217 2.2x 16% 16%
Total BREP 175,761,986$ 51,455,343$ 75,415,550$ 1.2x 173,745,405$ 2.3x 249,160,955$ 1.8x 17% 14%
*BREDS High-Yield (Various) (g) 25,008,694 8,738,933 5,522,621 1.0x 20,244,034 1.4x 25,766,655 1.3x 10% 9%
Private Equity
Corporate Private Equity
BCP I (Oct 1987 / Oct 1993) 859,081$ -$ -$ n/a 1,741,738$ 2.6x 1,741,738$ 2.6x 19% 19%
BCP II (Oct 1993 / Aug 1997) 1,361,100 - - n/a 3,268,627 2.5x 3,268,627 2.5x 32% 32%
BCP III (Aug 1997 / Nov 2002) 3,967,422 - - n/a 9,228,707 2.3x 9,228,707 2.3x 14% 14%
BCOM (Jun 2000 / Jun 2006) 2,137,330 24,575 200 n/a 2,995,106 1.4x 2,995,306 1.4x 6% 6%
BCP IV (Nov 2002 / Dec 2005) 6,773,182 195,824 382 n/a 21,720,334 2.9x 21,720,716 2.9x 36% 36%
BCP V (Dec 2005 / Jan 2011) 21,009,112 1,035,259 66,016 n/a 38,806,330 1.9x 38,872,346 1.9x 8% 8%
BCP VI (Jan 2011 / May 2016) 15,195,243 1,341,026 4,196,056 2.0x 28,611,427 2.2x 32,807,483 2.2x 14% 12%
BCP VII (May 2016 / Feb 2020) 18,858,738 1,695,536 17,800,433 1.6x 18,003,374 2.5x 35,803,807 2.0x 25% 13%
BCP VIII (Feb 2020 / Apr 2024) 25,919,222 8,631,985 23,282,787 1.3x 2,295,428 2.4x 25,578,215 1.4x n/m 10%
*BCP IX (Apr 2024 / Apr 2029) 20,063,265 20,063,265 - n/a - n/a - n/a n/a n/a
Energy I (Aug 2011 / Feb 2015) 2,441,558 174,492 496,646 1.5x 4,189,846 2.0x 4,686,492 2.0x 14% 11%
Energy II (Feb 2015 / Feb 2020) 4,918,278 864,914 3,974,634 1.8x 4,290,605 1.8x 8,265,239 1.8x 11% 8%
Energy III (Feb 2020 / Jun 2024) 4,373,418 1,563,746 5,220,402 1.9x 1,348,610 2.4x 6,569,012 2.0x 55% 30%
*Energy Transition IV (Jun 2024 / Jun 2029) 3,623,326 3,593,259 - n/a - n/a - n/a n/a n/a
BCP Asia I (Dec 2017 / Sep 2021) 2,437,080 417,510 2,708,957 1.9x 2,611,544 3.5x 5,320,501 2.4x 51% 26%
*BCP Asia II (Sep 2021 / Sep 2027) 6,778,892 4,712,552 2,550,881 1.7x 91,510 2.2x 2,642,391 1.7x n/m 26%
Core Private Equity I (Jan 2017 / Mar 2021) (h) 4,760,284 1,171,242 7,339,096 1.9x 2,836,291 5.1x 10,175,387 2.3x 58% 17%
*Core Private Equity II (Mar 2021 / Mar 2026) (h) 8,450,958 5,871,750 3,697,866 1.5x 126,586 n/a 3,824,452 1.6x n/a 15%
Total Corporate Private Equity 153,927,489$ 51,356,935$ 71,334,356$ 1.6x 142,166,063$ 2.2x 213,500,419$ 2.0x 16% 15%

Blackstone remains undervalued on private equity. The long-term insurance premiums insure a stable back wind for private equity, real estate and credit.