Blackstone (BX) Financial History

We additionally have and may in the future grant deferred restricted shares of common stock and deferred restricted Blackstone Holdings Partnership Units to our

basis We have entered into a registration rights agreement with such limited partners that requires us to register these shares of common stock under the Securities Act and we have filed registration statements that c…

The market price of our common stock could decline as a result of sales of a large number of shares of common stock in the market in the future or the perception that such sales could occur.

The 1940 Act and the rules thereunder contain detailed parameters for the organization and operation of investment companies.

We have entered into tax receivable agreements with our senior managing directors and other

Our ability to make dividends to our stockholders will depend on a number of factors, including among others general economic and business conditions, our strategic plans and prospects, our business and investment opp…

Our intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s…

Stockholder at any time without our approval.

Blackstone Group Management L.L.C., an entity owned by senior managing directors of Blackstone and controlled by Mr.

Because the Series II Preferred Stockholder holds more than 50% of the voting power for the election of directors, we are a “controlled company” and fall within exceptions from certain corporate governance and other r…

Moreover, we are not required to file proxy statements or information statements under Section 14 of the Exchange Act except in circumstances where a vote of holders of our common stock is required under our certifica…

Holders of our Series I preferred stock will collectively be entitled to a number of votes equal to the aggregate number of Blackstone Holdings Partnership Units held by the limited partners of the Blackstone Holdings…

These matters generally require the approval of a majority of the outstanding shares of common stock and Series I preferred stock, voting together as a single class.

In the event of the insolvency of a prime broker, custodian, counterparty or any other party that is holding assets of our funds as collateral, our funds might not be able to recover equivalent assets in full as they…

We are reliant on other

The prices of commodities, futures, options and other derivatives are highly volatile and may be subject to the theoretically unlimited risk of loss in certain circumstances, including if the hedge fund writes a call…

The efficacy of investment and trading strategies depends largely on the ability to establish and maintain an overall market position in a combination of financial instruments.

Large financial institutions are dependent on one another to meet their liquidity or operational needs, such that a default by one may cause a series of defaults by the others.

Hedge funds are exposed to counterparty risk, including that a counterparty may dispute and not settle a transaction in accordance with its terms and conditions, thus causing the fund to suffer a loss.

Hedge funds may engage in speculative trading strategies, including short selling.

Generally, the execution of third-party hedge funds’ investment strategies is subject to the sole discretion of the management company or the general partner of such funds.

Certain of the funds in which we invest are newly established without any operating history or are managed by less established management companies or general partners.

To the extent our BXLS portfolio companies’ intellectual property positions are challenged, invalidated or circumvented, the value of BXLS’s investment or BXLS’ rights in a termination event may be impaired.

foreign government or regulatory agencies.

The management of the business or operations of real estate and infrastructure assets may be contracted to a third-party management company unaffiliated with us.

The operation of real estate and infrastructure and assets is exposed to potential unplanned interruptions caused by significant events, including natural disasters, terrorist attacks, war, pandemics and other severe…

Real estate and infrastructure and asset investments are subject to various construction risks that could result in unanticipated delays or expenses or prevent the completion of construction once undertaken.

Investments in real estate and infrastructure assets may expose us to increased risks that are inherent in the development and ownership of real assets.

Our funds’ investments in real estate and infrastructure assets, including digital infrastructure, may expose us to increased risks that are inherent in the ownership of such assets.

The power and energy sectors are the subject of substantial and complex laws, rules and regulation by various federal and state regulatory agencies.

The development, operation and maintenance of power and energy generation facilities involves many risks, including, as applicable, labor issues,

While such hedging arrangements may reduce certain risks, such arrangements themselves may entail certain other risks.

We depend on investors in our carry funds (and certain of our hedge funds) to fulfill their capital commitments in order for those funds to consummate investments, and otherwise pay their obligations (for example, man…

including those that are available to individual investors, investors may request redemptions or repurchases of their interests on a periodic basis, subject to certain limitations.

We have a number of vehicles that permit investors in such vehicles to withdraw their investments and/or terminate our management of such capital, as applicable and in certain cases, subject to certain limitations.

heightened exposure to corruption risk and/or economic sanctions risk in certain

The Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) requires companies subject to SEC reporting obligations under Section 13 of the Exchange Act to disclose in their periodic reports specified dealin…

We and our affiliates have reported in the past and may be required to report in the future specified dealings or transactions involving Iran or other sanctioned individuals or entities.

When evaluating a potential business or asset for investment, we conduct due diligence that we deem reasonable and appropriate based on the facts and circumstances applicable to such investment.

Many of our funds’ investments rely heavily on the use of leverage, and our ability to achieve attractive rates of return on investments will depend on our ability to access sufficient sources of indebtedness at attra…

We use borrowings to finance our business operations as a public company and facilitate growth and expansion of our businesses, including warehousing investments for our funds.

A decision to acquire material

Our failure to deal appropriately with conflicts of interest in our asset management business could damage our reputation and adversely affect our businesses.

Because of our various asset management businesses and our capital markets services business, we will be subject to a number of actual and potential conflicts of interest and subject to greater regulatory oversight an…

In many cases, the companies in which our funds invest will have indebtedness or equity securities, or may be permitted to incur indebtedness or to issue equity securities, that rank senior to our fund’s investment.

anti-fraud,

We are subject to U.S.

laws in connection with transactions in which we participate.

Our funds’ investments outside of the United States may face delays, limitations, or restrictions as a result of notifications made under and/or compliance with these legal regimes and rapidly changing agency practices.

In August 2023, an executive order established an outbound investment screening regime (the “Outbound Order”), which was intended to regulate or prohibit certain investments by U.S.

Certain regulatory requirements in the EU and U.K.

NAIC’s Securities Valuation Office (“SVO”), as applicable, with respect to such products, assets or investments could make them less attractive and limit our ability to offer such products to, or invest or deploy capi…

There is uncertainty as to further actions that may be taken under the current U.S.

In recent years, the U.S.

In addition, the FSOC has the authority to designate nonbank financial companies as systemically important financial institutions (“SIFIs”) subject to supervision by the Federal Reserve Board.

In addition, policy changes impacting the financial services industry could impose additional costs, require significant attention of our senior management and personnel or requires to change, or limit, the manner in…

The

labels regime (“SDR”) and an anti-greenwashing rule.

Climate and sustainability-related regulations or interpretations of existing laws may result in enhanced disclosure obligations, which could negatively affect us, our funds and our funds’ portfolio companies and mate…

Certain investors also have begun to request or require data from their asset managers and/or use

Regulations related to AI Technologies may also impose on us certain obligations and costs related to monitoring and compliance.

Through our use of AI Technologies, we avail ourselves of the potential benefits, insights and efficiencies resulting from these technologies.

Technological developments in artificial intelligence, including machine learning technology and generative artificial intelligence (“AI Technology” and, collectively, “AI Technologies”) and their current and potentia…

Technological developments in artificial intelligence could disrupt the markets in which we and our portfolio companies operate and subject us and our portfolio companies to increased competition, legal and regulatory…

Any inability, or perceived inability, by us or our funds’ portfolio companies to adequately address data protection or privacy concerns, or comply with applicable laws, regulations, policies, industry standards and g…

Data security and privacy compliance obligations to which we are subject impose compliance costs on us, which could increase significantly as laws and regulations evolve globally.

Our and our funds’ portfolio companies’ technology platforms, data and intellectual property are also subject to a heightened risk of theft or compromise as a result of operations outside the United States, in particu…

Cybersecurity, privacy and data protection have become top priorities for regulators in the United States and around the world.

investments.

There is no guarantee that the

We depend on the efforts, skill, reputations and business contacts of our

the products are distributed in a manner inconsistent with our regulatory requirements or otherwise inappropriate manner.

Although individual investors have been part of our historic distribution efforts, we are increasingly undertaking business initiatives to increase the number and type of investment products we offer to

We are increasingly undertaking business initiatives to increase the number and type of investment products we offer to individual investors, which could expose us to new and greater levels of risk.

Regulatory measures aimed at reducing burden on U.S.

alternative asset managers on the basis of price, we may not be able to maintain our current fund fee and carried interest terms.

Our asset management business competes with a number of private funds, specialized investment funds, funds structured for individual investors, hedge funds, funds of hedge funds and other sponsors managing pools of ca…

In connection with raising new funds or making further investments in existing funds, we negotiate terms for such funds and investments with investors.

In addition, volatility in the valuations of investments, has in the past and may in the future affect our ability to raise capital from

Our ability to raise capital from

If growth of the global economy decelerates, or conditions in the financing markets were challenged, the investment performance of our funds could suffer, resulting in, for example, the payment of decreased or no Perf…

We primarily use cash to, without limitation (a) provide capital to facilitate the growth of our existing businesses, including funding our general partner and

For a number of our perpetual capital vehicles that have in recent years become increasingly large contributors to our earnings, incentive income is paid to us in varying frequencies, ranging from quarterly to every f…

Our revenue, earnings, net income and cash flow can all vary materially due to our reliance on Performance Revenues.

Further, U.S.

We may also fail to consummate identified investment opportunities because of regulatory or legal complexities or uncertainty and adverse developments in the U.S.

The revenues that we earn are driven in part by the pace at which our funds make investments and the size of those investments, and a decline in the pace or the size of such investments may reduce our revenues.

In addition, elevated interest rates increase the cost of debt financing for the transactions our funds pursue.

Sustained periods of high interest rates and challenging debt market conditions negatively impact the values of certain assets or investments and the ability of our funds and their portfolio companies to access capita…

Despite overall resilience in some geographies, many global economies have in recent years experienced periods of deceleration.

investors, have been adversely impacted in recent years by elevated interest rates and a high, albeit declining, cost of capital.

valuations particularly sensitive to sharp changes in the price of any of these positions.

Our business is materially affected by financial market and economic conditions and events throughout the world that are outside our control.

In addition, the Blackstone Holdings partnership agreements authorize the wholly owned subsidiaries of Blackstone Inc.

basis, subject to customary conversion rate adjustments for splits, unit distributions and reclassifications.

These provisions may also discourage acquisition proposals or delay or prevent a change in control.

The 1940 Act and the rules thereunder contain detailed parameters for the organization and operation of investment companies.

selling holders of Blackstone Holdings Partnership Units.

equity-based

equity-based