BLACKSTONE INC. Management's Discussion and Analysis of Financial Condition and Results of Operations." (form 10-K)

February 24, 2023

For more information concerning the revenues and fees we derive from our
business segments, see "- Fee Structure/Incentive Arrangements."

Real Estate

Our Real Estate business is a global leader in real estate investing, with
$326.1 billion of Total Assets Under Management as of December 31, 2022. Our
Real Estate segment operates as one globally integrated business with
approximately 890 employees and has investments across the globe, including in
the Americas, Europe and Asia. Our real estate investment teams seek to utilize
our global expertise and presence to generate attractive risk-adjusted returns
for our investors.

Our Blackstone Real Estate Partners ("BREP") business is geographically
diversified and targets a broad range of opportunistic real estate and real
estate-related investments. The BREP funds include global funds as well as funds
focused specifically on Europe or Asia investments. BREP seeks to invest
thematically in high-quality assets,



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focusing where we see outsized growth potential driven by global economic and
demographic trends. BREP has made significant investments in logistics, office,
rental housing, hospitality and retail properties around the world, as well as
in a variety of real estate operating companies.

Our Core+ strategy invests in substantially stabilized real estate globally
primarily through perpetual capital vehicles. These include our (a) Blackstone
Property Partners
funds ("BPP"), which is focused on high-quality assets in the
Americas, Europe and Asia and (b) Blackstone Real Estate Income Trust, Inc.
("BREIT") and our Blackstone European Property Income ("BEPIF") funds, which
provide income-focused individual investors access to institutional quality real
estate primarily in the Americas and Europe, respectively.

Our Blackstone Real Estate Debt Strategies ("BREDS") vehicles primarily target
real estate-related debt investment opportunities. BREDS invests in both public
and private markets, primarily in the U.S. and Europe. BREDS' scale and
investment mandates enable it to provide a variety of lending options for our
borrowers and investment options for our investors, including commercial real
estate and mezzanine loans, residential mortgage loan pools and liquid real
estate-related debt securities. The BREDS platform includes high-yield real
estate debt funds, liquid real estate debt funds and Blackstone Mortgage Trust,
Inc. ("BXMT"), a NYSE-listed real estate investment trust ("REIT").

Private Equity

Our Private Equity segment encompasses global businesses with a total of
approximately 590 employees managing $288.9 billion of Total Assets Under
Management as of December 31, 2022. Our Private Equity segment includes our
corporate private equity business, which consists of: (a) our global private
equity funds, Blackstone Capital Partners ("BCP"), (b) our sector-focused funds,
including our energy- and energy transition-focused funds, Blackstone Energy
Transition Partners
("BETP"), (c) our Asia-focused private equity funds,
Blackstone Capital Partners Asia and (d) our core private equity funds,
Blackstone Core Equity Partners ("BCEP"). Our Private Equity segment also
includes (a) our opportunistic investment platform that invests globally across
asset classes, industries and geographies, Blackstone Tactical Opportunities
("Tactical Opportunities"), (b) our secondary fund of funds business, Strategic
Partners Fund Solutions ("Strategic Partners"), (c) our infrastructure-focused
funds, Blackstone Infrastructure Partners ("BIP"), (d) our life sciences
investment platform, Blackstone Life Sciences ("BXLS"), (e) our growth equity
investment platform, Blackstone Growth ("BXG"), (f) our multi-asset investment
program for eligible high net worth investors offering exposure to certain of
Blackstone's key illiquid investment strategies through a single commitment,
Blackstone Total Alternatives Solution ("BTAS") and (g) our capital markets
services business, Blackstone Capital Markets ("BXCM").

We are a global leader in private equity investing. Our corporate private equity
business pursues transactions across industries on a global basis. It strives to
create value by investing in great businesses where our capital, strategic
insight, global relationships and operational support can drive transformation.
Our corporate private equity business's investment strategies and core themes
continually evolve in anticipation of, or in response to, changes in the global
economy, local markets, regulation, capital flows and geopolitical trends. We
seek to construct a differentiated portfolio of investments with a well-defined,
post-acquisition value creation strategy. Similarly, we seek investments that
can generate strong unlevered returns regardless of entry or exit cycle timing.
Blackstone Core Equity Partners pursues control-oriented investments in
high-quality companies with durable businesses and seeks to offer a lower level
of risk and a longer hold period than traditional private equity.

Tactical Opportunities pursues a thematically driven, opportunistic investment
strategy. Our flexible, global mandate enables us to find differentiated
opportunities across asset classes, industries, and geographies and invest
behind them with the frequent use of structure to generate attractive
risk-adjusted returns. With a focus on businesses and/or asset-backed
investments in market sectors that are benefitting from long term
transformational tailwinds, Tactical Opportunities seeks to leverage the full
power of Blackstone to help those businesses grow and improve. Tactical
Opportunities' ability to dynamically shift focus to the most compelling



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opportunities in any market environment, combined with the business' expertise
in structuring complex transactions, enables Tactical Opportunities to invest
behind attractive market areas often with securities that provide downside
protection and maintain upside return.

Strategic Partners, our secondary fund of funds business, is a total fund
solutions provider. As a secondary investor it acquires interests in
high-quality private funds from original holders seeking liquidity. Strategic
focuses on a range of opportunities in underlying funds such as private
equity, real estate, infrastructure, venture and growth capital, credit and
other types of funds, as well as general partner-led transactions and primary
investments and co-investments with financial sponsors. Strategic Partners also
provides investment advisory services to separately managed account clients
investing in primary and secondary investments in private funds and

Blackstone Infrastructure Partners targets a diversified mix of core+, core and
public-private partnership investments across all infrastructure sectors,
including energy infrastructure, transportation, digital infrastructure, and
water and waste with a primary focus in the U.S. BIP applies a disciplined,
operationally intensive investment approach to investments, seeking to apply a
long-term buy-and-hold strategy to large-scale infrastructure assets with a
focus on delivering stable, long-term capital appreciation together with a
predictable annual cash flow yield.

Blackstone Life Sciences is our investment platform with capabilities to invest
across the life cycle of companies and products within the life sciences sector.
BXLS primarily focuses on investments in life sciences products in late stage
clinical development within the pharmaceutical and biotechnology sectors.

Blackstone Growth is our growth equity platform that seeks to deliver attractive
risk-adjusted returns by investing in dynamic, growth-stage businesses, with a
focus on the consumer, consumer technology, enterprise solutions, financial
services and healthcare sectors.

Credit & Insurance

Our Credit & Insurance segment, with approximately 620 employees and
$279.9 billion of Total Assets Under Management as of December 31, 2022,
includes Blackstone Credit ("BXC"). BXC is one of the largest credit-oriented
managers and CLO managers in the world. The investment portfolios of the funds
BXC manages or sub-advises consist primarily of loans and securities of
non-investment and investment grade companies spread across the capital
structure including senior debt, subordinated debt, preferred stock and common

BXC is organized into two overarching strategies: private credit and liquid
credit. BXC's private credit strategies include mezzanine and direct lending
funds, private placement strategies, stressed/distressed strategies and energy
strategies (including our sustainable resources platform). BXC's direct lending
funds include Blackstone Private Credit Fund ("BCRED") and Blackstone Secured
Lending Fund ("BXSL"), both of which are business development companies
("BDCs"). BXC's liquid credit strategies consist of CLOs, closed-ended funds,
open-ended funds, systematic strategies and separately managed accounts.

Our Credit & Insurance segment also includes our insurer-focused platform,
Blackstone Insurance Solutions ("BIS"). BIS focuses on providing full investment
management services for insurers' general accounts, seeking to deliver
customized and diversified portfolios that include allocations to Blackstone
managed products and strategies across asset classes and Blackstone's private
credit origination capabilities. BIS provides its clients tailored portfolio
construction and strategic asset allocation, seeking to generate risk-managed,
capital-efficient returns, diversification and capital preservation that meets
clients' objectives. BIS also provides similar services to clients through
separately managed accounts or by sub-managing assets for certain
insurance-dedicated funds and special purpose vehicles. BIS currently manages
assets for clients that include Corebridge Financial Inc., Everlake Life
Insurance Company
, Fidelity & Guaranty Life Insurance Company and Resolution
Life Group
, among others.



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In addition, our Credit & Insurance segment includes our asset-based finance
platform and our publicly traded midstream energy infrastructure, listed
infrastructure and master limited partnership ("MLP") investment platform, which
is managed by Harvest Fund Advisors LLC ("Harvest"). Harvest primarily invests
capital raised from institutional investors in separately managed accounts and
pooled vehicles, investing in publicly traded energy infrastructure, listed
infrastructure, renewables and MLPs holding primarily midstream energy assets in
North America.

Hedge Fund Solutions

Working with our clients for more than 30 years, our Hedge Fund Solutions group
is a leading manager of institutional funds with approximately 275 employees
managing $79.7 billion of Total Assets Under Management as of December 31, 2022.
The principal component of our Hedge Fund Solutions segment is Blackstone
Alternative Asset Management
("BAAM"). BAAM is the world's largest discretionary
allocator to hedge funds, managing a broad range of commingled and customized
fund solutions since its inception in 1990. The Hedge Fund Solutions segment
also includes (a) our GP Stakes business ("GP Stakes"), which targets minority
investments in the general partners of private equity and other private-market
alternative asset management firms globally, with a focus on delivering a
combination of recurring annual cash flow yield and long-term capital
appreciation, (b) investment platforms that invest directly, including our
Blackstone Strategic Opportunity Fund, which seeks to produce long term,
risk-adjusted returns by investing in a wide variety of securities, assets and
instruments, often sourced and/or managed by third party subadvisors or
affiliated Blackstone managers, (c) our hedge fund seeding business and
(d) registered funds that provide alternative asset solutions through daily
liquidity products. Hedge Fund Solutions' overall investment philosophy is to
seek to grow investors' assets through both commingled and custom-tailored
investment strategies designed to deliver compelling risk-adjusted returns.
Diversification, risk management and due diligence are key tenets of our

Perpetual Capital

Each of our business segments currently includes Perpetual Capital assets under
management, which refers to assets under management with an indefinite term,
that are not in liquidation and for which there is no requirement to return
capital to investors through redemption requests in the ordinary course of
business, except where funded by new capital inflows. In recent years, we have
meaningfully increased the number of Perpetual Capital vehicles we offer and the
assets under management in such vehicles. Perpetual Capital strategies represent
a significant and growing portion of our overall business, and the management
fees and performance revenues we receive. Among the strategies in each of our
segments, Perpetual Capital strategies include, without limitation, (a) in our
Real Estate segment, Core+ real estate (including BREIT and BEPIF) and BXMT,
(b) in our Private Equity segment, Blackstone Infrastructure Partners, (c) in
our Credit & Insurance segment, BXSL and BCRED and (d) in our Hedge Fund
Solutions segment, GP Stakes. In addition, assets managed for certain of our
insurance clients are Perpetual Capital assets under management.

Private Wealth Strategy

Blackstone's business has historically relied on the provision of investment
products, such as traditional drawdown funds, to institutional investors. In
recent years, we have considerably expanded the number and type of investment
products we offer through various distribution channels to certain mass affluent
and high net worth individual investors in the U.S. and other jurisdictions
around the world. Our Private Wealth Solutions business is dedicated to building
out our distribution capabilities in the retail channel to provide certain
individual investors with access to Blackstone products across a broad array of
alternative investment strategies. In recent years, capital from the private
wealth channel has represented an increasing portion of our Total Assets Under
Management, and we expect this trend to continue as we continue to undertake
initiatives aimed at growing our private wealth strategies.



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Investment Process and Risk Management

We maintain a rigorous investment process across all of our investment vehicles.
Each investment vehicle has investment policies and procedures that generally
contain requirements, guidelines and limitations for investments, such as
limitations relating to the amount that will be invested in any one investment
and the types of assets, industries or geographic regions in which the vehicle
will invest, as well as limitations required by law.

Our investment professionals are responsible for selecting, evaluating,
underwriting, diligencing, negotiating, executing, managing and exiting
investments. For those of our businesses with review committees and/or
investment committees, such committees review and evaluate investment
opportunities in a framework that includes a qualitative and quantitative
assessment of the key risks of investments. In such businesses, investment
professionals generally submit investment opportunities for review and approval
by a review committee and/or investment committee, subject to delineated
exceptions set forth in the funds' investment committee charters or resolutions.
Review and investment committees are generally comprised of senior leaders and
other senior professionals of the applicable investment business, and in many
cases, other senior leaders of Blackstone and its businesses. Considerations
that review and investment committees take into account when evaluating an
investment may include, without limitation and depending on the nature of the
investing business and its strategy, the quality of the business or asset in
which the fund proposes to invest, the quality of the management team, likely
exit strategies and factors that could reduce the value of the business or asset
at exit, the ability of the business in which the investment is made to service
debt in a range of economic and interest rate environments, macroeconomic trends
in the relevant geographic region or industry and the quality of the businesses'
operations. In addition, the majority of our businesses have ESG policies that
address, among other things, the review of ESG risks in the respective
business's investment process.

In addition, before deciding to invest in a new hedge fund or a new alternative
asset manager, as applicable, our Hedge Fund Solutions and Strategic Partners
teams conduct diligence in a number of areas, which, depending on the nature of
the investment, may include, among others, the fund's/manager's performance,
investment terms, investment strategy and investment personnel, as well as its
operations, processes, risk management and internal controls. With respect to
liquid credit clients and other clients whose portfolios are actively traded in
our Credit & Insurance segment, our industry-focused research analysts provide
the review and/or investment committee with a formal and comprehensive review of
new investment recommendations and portfolio managers and trading professionals
discuss, among other things, risks associated with overall portfolio
composition. Our Credit & Insurance segment's research team monitors the
operating performance of underlying issuers, while portfolio managers, together
with our traders, focus on optimizing asset composition to maximize value for
our investors. This investment process is assisted by a variety of proprietary
and non-proprietary research models and methods.

Existing investments are reviewed and monitored on a regular basis by investment
and asset management professionals. In addition, our investment professionals,
Portfolio Operations professionals and, where applicable, ESG teams, work with
our portfolio company senior executives to identify opportunities to drive
operational efficiencies and growth. As part of our value creation efforts for
our investors, select businesses encourage certain of their respective portfolio
companies and assets to consider a select number of priority ESG initiatives
focused on diversity, decarbonization and good governance.

Structure and Operation of Our Investment Vehicles

Our private investment funds are generally organized as limited partnerships
with respect to U.S. domiciled vehicles and limited partnerships or other
similar limited liability entities with respect to non-U.S. domiciled vehicles.
In the case of our separately managed accounts, the investor, rather than we,
generally controls the investment vehicle that holds or has custody of the
investments we advise the vehicle to make. We conduct the sponsorship and
management of our carry funds and other similar vehicles primarily through a



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structure in which limited partnerships organized by us accept commitments
and/or subscriptions for investment from institutional investors and, to a more
limited extent, high net worth individuals. Such commitments are generally drawn
down from investors on an as-needed basis to fund investments (or for other
permitted purposes) over a specified term. Our private equity and real estate
funds are generally commitment-structured funds, with the exception of certain
BPP, BREDS and BIP funds, as well as BREIT and BEPIF. For certain BPP, BREIT,
BEPIF and BREDS funds, all or a portion of an investor's capital may be funded
on or promptly after the investor's subscription date and cash proceeds
resulting from the disposition of investments can be reinvested, subject to
certain limitations and limited investor withdrawal rights. Our credit-focused
funds are generally either commitment-structured funds or open-ended funds where
the investor's capital is fully funded on or promptly after the investor's
subscription date. The CLO vehicles we manage are structured investment vehicles
that are generally private companies with limited liability. Most of our funds
of hedge funds as well as our hedge funds are structured as funds where the
investor's capital is fully funded on the subscription date. BIS is generally
structured around separately managed accounts.

Our investment funds, separately managed accounts and other vehicles not
domiciled in the European Economic Area (the "EEA") are each generally advised
by a Blackstone entity serving as investment adviser that is registered under
the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"). For
our investment funds, separately managed accounts and other vehicles domiciled
in the EEA, a Blackstone entity domiciled in the EEA generally serves as
external alternative investment fund manager ("AIFM"), and the AIFM typically
delegates its portfolio management function to a Blackstone-affiliated
investment adviser registered under the Advisers Act. The Blackstone entity
serving as investment adviser or AIFM, as applicable, typically carries out
substantially all of the day-to-day operations of each investment vehicle
pursuant to an investment advisory, investment management, AIFM or other similar
agreement. Generally, the material terms of our investment advisory and AIFM
agreements, as applicable, relate to the scope of services to be rendered by the
investment adviser or the AIFM to the applicable vehicle, the calculation of
management fees to be borne by investors in our investment vehicles, the
calculation of and the manner and extent to which other fees received by the
investment adviser or the AIFM, as applicable, from funds or fund portfolio
companies serve to offset or reduce the management fees payable by investors in
our investment vehicles and certain rights of termination with respect to our
investment advisory and AIFM agreements. With the exception of the registered
funds described below, the investment vehicles themselves do not generally
register as investment companies under the U.S. Investment Company Act of 1940,
as amended (the "1940 Act"), in reliance on the statutory exemptions provided by
Section 3(c)(7), Section 3(c)(5)(C) or, Section 3(c)(1) thereof. Section 3(c)(7)
of the 1940 Act exempts from its registration requirements investment vehicles
privately placed in the United States whose securities are beneficially owned
exclusively by persons who, at the time of acquisition of such securities, are
"qualified purchasers" as defined under the 1940 Act. In addition, under current
interpretations of the SEC, Section 3(c)(7) of the 1940 Act exempts from
registration any non-U.S. investment vehicle all of whose outstanding securities
are beneficially owned either by non-U.S. residents or by U.S. residents that
are qualified purchasers. Section 3(c)(5)(C) of the 1940 Act exempts from its
registration requirements certain companies engaged primarily in investment in
mortgages and other liens or investments in real estate. Section 3(c)(1) of the
1940 Act exempts from its registration requirements privately placed investment
vehicles whose securities are beneficially owned by not more than 100 persons.
Additionally, under current interpretations of the SEC, Section 3(c)(1) of the
1940 Act exempts from registration any non-U.S. investment vehicle not publicly
offered in the U.S. all of whose outstanding securities are beneficially owned
by not more than 100 U.S. residents. BXMT is externally managed by a
Blackstone-owned entity pursuant to a management agreement, conducts its
operations in a manner that allows it to maintain its REIT qualification and
also avail itself of the statutory exemption provided by Section 3(c)(5)(C) of
the 1940 Act. BREIT is externally advised by a Blackstone-owned entity pursuant
to an advisory agreement, conducts its operations in a manner that allows it to
maintain its REIT qualification and also avails itself of the statutory
exemption provided by Section 3(c)(5)(C) of the 1940 Act. In some cases, one or
more of our investment advisers, including advisers within BXC, BAAM and BREDS,
advises or sub-advises funds registered, or regulated as a BDC, under the 1940



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In addition to having an investment adviser, each investment fund that is a
limited partnership, or "partnership" fund, also has a general partner that,
apart from partnership funds domiciled in the EEA, generally makes all
operational and investment decisions, including the making, monitoring and
disposing of investments. The limited partners of the partnership funds
generally take no part in the conduct or control of the business of the
investment funds, have no right or authority to act for or bind the investment
funds and have no influence over the voting or disposition of the securities or
other assets held by the investment funds. With the exception of certain of our
funds of hedge funds, hedge funds, certain credit-focused and real estate debt
funds, and other funds or separately managed accounts for the benefit of one or
more specified investors, third party investors in some of our funds have the
right to remove the general partner of the fund or to accelerate the termination
of the investment fund without cause by a majority or supermajority vote. In
addition, the governing agreements of many of our investment funds provide that
in the event certain "key persons" in our investment funds do not meet specified
time commitments with regard to managing the fund, then (a) investors in such
funds have the right to vote to terminate the investment period by a specified
percentage (including, in certain cases a simple majority) vote in accordance
with specified procedures, or accelerate the withdrawal of their capital on an
investor-by-investor basis, or (b) the fund's investment period will
automatically terminate and a specified percentage (including, in certain cases
a simple majority) in accordance with specified procedures is required to
restart it. In addition, the governing agreements of some of our investment
funds provide that investors have the right to terminate the investment period
for any reason by a supermajority vote of the investors in such fund.

Fee Structure/Incentive Arrangements

Management Fees

The following is a general description of the management fees earned by

   •    The investment adviser of each of our non-EEA domiciled carry funds and the
        AIFM of each of our EEA domiciled carry funds generally receives an annual
        management fee based on a percentage of the fund's capital commitments,
        invested capital and/or undeployed capital during the investment period and
        the fund's invested capital or investment fair value after the investment
        period, except that the investment adviser or AIFM to certain of our
        credit-focused, BPP and BCEP funds receives a management fee based on a
        percentage of invested capital or net asset value. These management fees
        are payable on a regular basis (typically quarterly) in the contractually
        prescribed amounts over the life of the fund. Depending on the base on
        which management fees are calculated, negative performance of one or more
        investments in the fund may reduce the total management fee paid for the
        relevant period, but not the fee rate. Management fees received are not
        subject to clawback.

   •    The investment adviser of each of our funds that are structured like hedge
        funds, or of our funds of hedge funds, registered mutual funds, UCITs funds
        and separately managed accounts that invest in hedge funds, generally
        receives a management fee based on a percentage of the fund's or account's
        net asset value. These management fees are payable on a regular basis
        (typically monthly or quarterly). These funds generally permit investors to
        withdraw or redeem their interests periodically, in some cases following
        the expiration of a specified period of time when capital may not be
        withdrawn. Decreases in the net asset value of investor's capital accounts
        may reduce the total management fee paid for the relevant period, but not
        the fee rate. Management fees received are not subject to clawback. In
        addition, to the extent the mandate of our funds is to invest capital in
        third party managed funds, as is the case with our funds of hedge funds,
        our funds will be required to pay management fees to such third party
        managers, which typically are borne by investors in such investment

   •    The investment adviser of each of our CLOs typically receives annual
        management fees, which are calculated as a percentage of the CLO's assets,
        and additional incentive management fees subject to a return hurdle being
        met. These management fees are payable on a regular basis (typically
        quarterly). Although varying from deal to deal, a CLO will typically be
        wound down within eight to eleven years of being launched. The amount of
        fees will decrease as the CLO deleverages toward the end of its term.



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   •    The investment adviser of each of our separately managed accounts generally
        receives annual management fees based on a percentage of each account's net
        asset value or invested capital. The management fees we receive from each
        of our separately managed accounts are generally paid on a regular basis
        (typically quarterly). Such management fees are generally subject to
        contractual rights the investor has to terminate our management on
        generally as short as 30 days' notice.

   •    The investment adviser of each of our credit-focused registered and
        non-registered investment companies and our BDCs typically receive an
        annual management fee based on a percentage of net asset value or total
        managed assets. The management fees we receive from the registered
        investment companies we manage are generally paid on a regular basis
        (typically quarterly). Such management fees are generally subject to
        contractual rights of the company's board of directors to terminate our
        management of an account on as short as 30 days' notice.

   •    The investment adviser of BXMT receives an annual management fee, paid
        quarterly, based on a percentage of BXMT's net proceeds received from
        equity offerings and accumulated "distributable earnings" (which is
        generally equal to its net income, calculated under GAAP, excluding certain
        non-cash and other items), subject to certain adjustments.

   •    The investment adviser of BREIT and AIFM of BEPIF receive a management fee
        based on a percentage of BREIT's or BEPIF's, as applicable, net asset value
        per annum, payable monthly.

For additional information regarding the management fee rates we receive, see
"Part II. Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations - Critical Accounting Policies - Revenue Recognition -
Management and Advisory Fees, Net."

Incentive Arrangements

Our incentive arrangements are composed of (a) contractual incentive fees
received from certain investment vehicles upon achieving specified cumulative
investment returns ("Incentive Fees"), and (b) a disproportionate allocation of
the income generated by investment vehicles otherwise allocable to investors
upon achieving certain investment returns ("Performance Allocations", and,
together with Incentive Fees, "Performance Revenues").

In our carry funds, our Performance Revenues consist of the Performance
Allocations to which the general partner or an affiliate thereof is entitled,
commonly referred to as carried interest. Our ability to generate and realize
carried interest is an important element of our business and has historically
accounted for a very significant portion of our income.

Carried interest is typically structured as a net profits interest in the
applicable fund. In the case of our carry funds, carried interest is generally
calculated on a "realized gain" basis, and each general partner (or affiliate)
is generally entitled to an allocation of up to 20% of the net realized income
and gains (generally taking into account realized and unrealized or net
unrealized losses) generated by such fund. Net realized income or loss is not
generally netted between or among funds, and in some cases our carry funds
provide for allocations to be made on current income distributions (subject to
certain conditions).

For most carry funds, the carried interest is subject to a preferred limited
partner return ranging from 5% to 8% per year, subject to a catch-up allocation
to the general partner. Some of our carry funds do not provide for a preferred
return, and generally the terms of our carry funds vary in certain respects
across our business units and vintages. If, at the end of the life of a carry
fund (or earlier with respect to certain of our real estate, real estate debt,
core+ real estate, credit-focused, multi-asset class and opportunistic
investment funds), as a result of diminished performance of later investments in
a carry fund's life, (a) the general partner receives in excess of the relevant
carried interest percentage(s) applicable to the fund as applied to the fund's
cumulative net profits over



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the life of the fund, or (in certain cases) (b) the carry fund has not achieved
investment returns that exceed the preferred return threshold (if applicable),
then we will be obligated to repay an amount equal to the carried interest that
was previously distributed to us that exceeds the amounts to which we were
ultimately entitled, up to the amount of carried interest received on an
after-tax basis. This is known as a "clawback" obligation and is an obligation
of any person who received such carried interest, including us and other
participants in our carried interest plans.

Although a portion of any dividends paid to our stockholder may include any
carried interest received by us, we do not intend to seek fulfillment of any
clawback obligation by seeking to have our stockholders return any portion of
such dividends attributable to carried interest associated with any clawback
obligation. To the extent we are required to fulfill a clawback obligation,
however, we may determine to decrease the amount of our dividends to our
stockholders. The clawback obligation operates with respect to a given carry
fund's own net investment performance only and carried interest of other funds
is not netted for determining this contingent obligation. Moreover, although a
clawback obligation is several, the governing agreements of most of our funds
provide that to the extent another recipient of carried interest (such as a
current or former employee) does not fund his or her respective share of the
clawback obligation then due, then we and our employees who participate in such
carried interest plans may have to fund additional amounts (generally an
additional 50% to 70% beyond our pro-rata share of such obligation) although we
retain the right to pursue any remedies that we have under such governing
agreements against those carried interest recipients who fail to fund their
obligations. We have recorded a contingent repayment obligation equal to the
amount that would be due on December 31, 2022, if the various carry funds were
liquidated at their current carrying value. For additional information
concerning the clawback obligations we could face, see "- Item 1A. Risk Factors
- Risks Related to Our Business - We may not have sufficient cash to pay back
"clawback" obligations if and when they are triggered under the governing
agreements with our investors."

In our structures other than carry funds, our Performance Revenues generally
consist of performance-based allocations of a vehicle's net capital appreciation
during a measurement period, typically a year, subject to the achievement of
minimum return levels, high water marks, and/or other hurdle provisions, in
accordance with the respective terms set out in each vehicle's governing
agreements. Such allocations are typically realized at the end of the
measurement period and, once realized, are typically not subject to clawback or
reversal. In particular, our ability to generate and realize these amounts is an
important element of our business. Such allocations in certain of our Perpetual
strategies contribute a significant and growing portion to our overall

The following is a general description of the Performance Revenues earned by
Blackstone in structures other than carry funds:

   •    In our Hedge Fund Solutions segment, the investment adviser of our funds of
        hedge funds, certain hedge funds, separately managed accounts that invest
        in hedge funds and certain non-U.S. registered investment companies, is
        entitled to an incentive fee of 0% to 20%, as applicable, of the applicable
        investment vehicle's net appreciation, subject to "high water mark"
        provisions and in some cases a preferred return. In addition, to the extent
        the mandate of our funds is to invest capital in third party managed hedge
        funds, as is the case with our funds of hedge funds, our funds will be
        required to pay incentive fees to such third party managers, which
        typically are borne by investors in such investment vehicles.

   •    The general partners or similar entities of each of our real estate and
        credit hedge fund structures receive incentive fees of generally up to 20%
        of the applicable fund's net capital appreciation per annum.

   •    The investment adviser of our BDCs receives (a) income incentive fees of
        12.5% or 15%, as applicable, subject to, in certain cases, certain hurdles,
        catch-ups and caps, payable quarterly, and (b) capital gains incentive fees
        (net of realized and unrealized losses) of 12.5% or 15%, as applicable,
        payable annually.



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   •    The investment manager of BXMT receives an incentive fee generally equal to
        20% of BXMT's distributable earnings in excess of a 7% per annum return on
        stockholders' equity (excluding stock appreciation or depreciation),
        provided that BXMT's distributable earnings over the prior three years is
        greater than zero.

   •    The special limited partner of each of BREIT and BEPIF receives a
        performance participation allocation of 12.5% of total return, subject to a
        5% hurdle amount with a catch-up and recouping any loss carry forward
        amounts, payable quarterly.

   •    The general partners of certain open-ended BPP and BIP funds are entitled
        to an incentive fee allocation generally between 7% and 12.5% of net
        profit, subject to a hurdle amount generally of between 5.5% and 7%, a loss
        recovery amount and a catch-up. Incentive allocations for these funds are
        generally realized every three years from when a limited partner makes its
        initial investment.

Advisory and Transaction Fees

Some of our investment advisers or their affiliates receive customary fees (for
example, acquisition, origination and other transaction fees) upon consummation
of their funds' transactions, and may from time to time receive advisory,
monitoring and other fees in connection with their activities. For most of the
funds where we receive such fees, we are required to reduce the management fees
charged to the funds' investors by 50% to 100% of such limited partner's share
of such fees.

Capital Invested In and Alongside Our Investment Funds

To further align our interests with those of investors in our investment funds,
we have invested the firm's capital and that of our personnel in the investment
funds we sponsor and manage. Minimum general partner capital commitments to our
investment funds are determined separately with respect to each of our
investment funds and, generally, are less than 5% of the limited partner
commitments of any particular fund. See "Part II. Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Liquidity and Capital Resources" for more information regarding our minimum
general partner capital commitments to our funds. We determine whether to make
general partner capital commitments to our funds in excess of the minimum
required commitments based on, among other things, our anticipated liquidity,
working capital and other capital needs. In many cases, we require our senior
managing directors and other professionals to fund a portion of the general
partner capital commitments to our funds. In other cases, we may from time to
time offer to our senior managing directors and employees a part of the funded
or unfunded general partner commitments to our investment funds. Our general
partner capital commitments are funded with cash and not with carried interest
or deferral of management fees.

Investors in many of our funds also receive the opportunity to make additional
"co-investments" with the investment funds. Our personnel, as well as Blackstone
itself and certain Blackstone relationships, also have the opportunity to make
investments, in or alongside our funds and other vehicles we manage, in some
instances without being subject to management fees, carried interest or
incentive fees. In certain cases, limited partner investors may pay additional
management fees or carried interest in connection with such co-investments.


The asset management industry is intensely competitive, and we expect it to
remain so. We compete both globally and on a regional, industry and sector
basis. We compete on the basis of a number of factors, including investment
performance, transaction execution skills, access to capital, access to and
retention of qualified personnel, reputation, range of products and services,
innovation and price.

We face competition both in the pursuit of institutional and individual
investors for our investment funds and in acquiring investments in attractive
portfolio companies and making other investments. Although many



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institutional and individual investors have increased the amount of capital they
commit to alternative investment funds, such increases may create increased
competition with respect to fees charged by our funds. Certain institutional
investors have demonstrated a preference to in-source their own investment
professionals and to make direct investments in alternative assets without the
assistance of private equity advisers like us. We compete for investments with
such institutional investors and such institutional investors could cease to be
our clients. With respect to the private wealth channel and insurance sector,
the market for capital is highly competitive and requires significant

Depending on the investment, we face competition primarily from sponsors
managing other funds, investment vehicles and other pools of capital, other
financial institutions and institutional investors (including sovereign wealth
and pension funds), corporate buyers, special purpose acquisition companies and
other parties. Several of these competitors have significant amounts of capital
and many of them have investment objectives similar to ours, which may create
additional competition for investment opportunities. Some of these competitors
may also have a lower cost of capital and access to funding sources or other
resources that are not available to us, which may create competitive
disadvantages for us with respect to investment opportunities. In addition, some
of these competitors may have higher risk tolerances, different risk assessments
or lower return thresholds, which could allow them to consider a wider variety
of investments and to bid more aggressively than us for investments. Corporate
buyers may be able to achieve synergistic cost savings with regard to an
investment or be perceived by sellers as otherwise being more desirable bidders,
which may provide them with a competitive advantage in bidding for an

In all of our businesses, competition is also intense for the attraction and
retention of qualified employees. Our ability to continue to compete effectively
in our businesses will depend upon our ability to attract new employees and
retain and motivate our existing employees.

For additional information concerning the competitive risks that we face, see "-
Item 1A. Risk Factors - Risks Related to Our Business - The asset management
business is intensely competitive."

Environmental, Social and Governance

We aim to develop resilient companies and competitive assets that deliver
long-term value for our investors. ESG principles have long informed the way we
run our firm, approach investing and partner with the assets in our portfolio.
In recent years we have formalized our approach by building a dedicated
corporate ESG team that looks to develop ESG policies and support integration
within the business units, and regularly reports progress to stakeholders. ESG
at Blackstone is overseen by senior management. Senior management reports
quarterly on ESG to our board of directors, which is responsible for reviewing
our ESG strategy. We also engage with several organizations to help inform our
approach, including the Taskforce on Climate-related Financial Disclosures

We believe that for certain investment strategies, consideration of appropriate
ESG factors can help us identify attractive investment opportunities and assess
potential risks in furtherance of our mission to deliver strong returns.
Accordingly, we are seeking to develop a tailored approach to consideration of
ESG factors in the investment lifecycle that takes into account, among other
factors, the asset class and structure of the investment.

We are focused on corporate sustainability and pursuing environmental
performance improvements at our office locations. We proactively renovate our
spaces to provide additional employee amenities and comfort while implementing
efficient lighting and HVAC systems. Blackstone also has an Emissions Reduction
Program, which aims to decrease energy spend by reducing Scope 1 and Scope 2
carbon emissions by 15% on average across certain new investments where we
control energy usage within the first three full calendar years of ownership. We
continue to expand our resources to enable us to drive long-term value through
sustainability practices, energy efficiency and decarbonization at scale.



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Human Capital Management

Blackstone's employees are integral to our culture of integrity,
professionalism, excellence and cooperation. The intellectual capital
collectively possessed by our employees is our most important asset. We hire
qualified people, train them and encourage them to work together to provide
their best thinking to the firm for the benefit of the investors in the funds we
manage. As of December 31, 2022, we employed approximately 4,695 people. During
2022, our total number of employees increased by approximately 900.

Our board of directors plays an active role in overseeing our human capital
management efforts. To that end, senior management reviews with our board of
directors management succession planning and development and other key aspects
of our talent management strategy.

Employee and Community Engagement

Blackstone is committed to ensuring our employees are engaged with their work
and with their local communities. To that end, Blackstone regularly gathers
feedback from our employees via internal and/or external surveys to assess
employee engagement and satisfaction and develop targeted solutions. Blackstone
also supports its employee affinity networks which are dedicated to recruiting,
retaining and raising awareness of diverse groups through speaker series,
networking events, service opportunities and mentoring relationships.

In addition, the Blackstone Charitable Foundation ("BXCF") was established in
2007, and is committed to supporting Blackstone's goal of helping foster
economic opportunity and career mobility for historically underrepresented
groups. This includes, among other initiatives, its signature Blackstone
LaunchPad network, which helps college and university students gain
entrepreneurial experiences and competencies to build successful companies and
careers, and BX Connects, a global program that provides Blackstone employees
with the opportunity to support their local communities through volunteering and
giving. BX Connects uses the firm's scale, talent and resources to make grants,
develop nonprofit partnerships and create employee engagement opportunities.
Approximately 80% of our employees engaged globally with BXCF's charitable
initiatives in 2022.

Talent Acquisition, Development and Retention

We believe the talent of our employees, coupled with our rigorous investment
process, has supported our excellent investment record over many years. We are
therefore focused on hiring, training, motivating and retaining talented
individuals. Across all our businesses, we face intense competition for
qualified personnel.

We seek to attract candidates from diverse backgrounds and skill sets and to
hire the brightest minds in our industry. We believe our reputation, talent
development opportunities and compensation make us an attractive employer. We
encourage independent thinking and reward initiative while providing training
and development opportunities to help our employees grow professionally. In
addition, our Respect at Work programs and trainings help maintain an inclusive
work environment in which all individuals are treated with respect and dignity.
Employee education and training are also critical to maintaining a culture of

Blackstone offers a wide range of learning and professional development
opportunities, both formally and informally, to help employees advance their
careers and maximize the value they can add to the global firm. Incoming analyst
classes are provided with training that spans their first few years. In
addition, our new hires are provided with training and other opportunities to
help them thrive in our culture, including through our Culture Program and our
Leadership Speaker Series. Blackstone employees are trained or enrolled in
compliance training when they start at the firm and we retrain employees
globally at least once annually. Over the course of their careers at Blackstone,
employees are offered learning opportunities in a number of areas including
leadership and management development and communication skills, among others. We
offer a global development curriculum on key capabilities required to succeed at
Blackstone, and we partner with external organizations to deliver training
programs for our employees. We consistently seek to create visibility and
opportunities for talent to take on roles



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beyond their current positions, and for managers to connect regularly to discuss
and match talent with critical roles. These efforts result in cross-pollination
of talent that we believe engages our people and generates stronger outcomes for
the firm.

As discussed below, we seek to retain and incentivize the performance of our
employees through our compensation structure. We also enter into non-competition
and non-solicitation agreements with certain employees. See "Part III. Item 11.
Executive Compensation - Non-Competition and Non-Solicitation Agreements" for a
description of the material terms of such agreements.

Diversity, Equity and Inclusion ("DEI")

We believe a diverse and inclusive workforce makes us better investors and a
better firm. We are committed to attracting, developing and advancing a diverse
workforce that represents a spectrum of backgrounds, identities and experiences.
We are focused on embedding DEI principles to maintain a culture of equity and
inclusion. We believe this will leverage the diversity of our workforce and
deliver results for our investors.

To that end, our talent acquisition platform includes programs aimed at
expanding diversity at Blackstone and in financial services, such as the
Blackstone Future Women Leaders program and the Blackstone Diverse Leaders
program. Our employees are invited to participate in our internal affinity
networks, which seek to engage, connect and create a supportive environment for
our employees, including by hosting speaker series, professional development
panels and social events. These networks include our Blackstone Women's
Initiative, Working Families Network, OUT Blackstone, Blackstone Veterans
Network and Diverse Professionals Network, which was recently expanded to
include a community of networks for Black, Hispanic and Latino, Asian and South
Asian and Middle Eastern employees and allies. We have also achieved a score of
100% on the Human Rights Campaign Corporate Equality Index, earning the
designation as a "Best Place to Work for LGBT+ Equality" for the fourth year in
a row in 2022.

We believe diversity of thought and experience builds better businesses. We seek
to ensure that our board of directors is composed of members whose collective
experience, qualifications and skills will allow the board to effectively
satisfy its oversight responsibilities. We also recognize that diversity is an
important component of effective governance. Over one-third of our board of
directors is diverse, based on gender, race and sexual orientation, when known.
Likewise, with respect to our portfolio companies, in 2021 we announced that we
will target at least one-third diverse representation on new controlled
portfolio company boards in the U.S. and Europe. We also launched our Career
Pathways pilot program, creating economic opportunity across our portfolio
through career mobility and ensuring select portfolio companies have access to
the largest pool of talent.

Compensation and Benefits

Our compensation is designed to motivate and retain employees and align their
interests with those of the investors in our funds. In particular, incentive
compensation for our senior managing directors and employees involves a
combination of annual cash bonus payments and performance interests or deferred
equity awards, which we believe encourages them to focus on the performance of
our investment funds and the overall performance of the firm. The proportion of
compensation that is "at risk" generally increases as an employee's level of
responsibility rises. Employees at higher total compensation levels are
generally targeted to receive a greater percentage of their total compensation
payable in annual cash bonuses, participation in performance interests, and
deferred equity awards and a lesser percentage in the form of base salary
compared to employees at lower total compensation levels. To further align their
interests with those of investors in our funds, our employees have the
opportunity to make investments in or alongside our funds and other vehicles we
manage. We also provide our employees robust health and retirement offerings, as
well as a variety of quality of life benefits, including time-off options and
well-being and family planning resources.

We believe our current compensation and benefit allocations for senior
professionals are best in class and are consistent with companies in the
alternative asset management industry. Our senior management periodically



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reviews the effectiveness and competitiveness of our compensation program. Most
of our current senior managing directors and other senior personnel have equity
interests in our business that entitle such personnel to cash distributions. See
"Part III. Item 11. Executive Compensation - Compensation Discussion and
Analysis - Overview of Compensation Philosophy and Program" for more information
on compensation of our senior managing directors and certain other employees.

Blackstone also offers comprehensive and competitive benefits to its full-time
employees, including primary and secondary caregiver leave, adoption leave,
phased back to work, fertility coverage, back up childcare and more. We
continually evaluate and enhance our offerings to meet the needs of our
employees. For example, we offer additional family planning benefits for U.S.
employees such as enhancing infertility benefits to include cryopreservation and
primary caregiver leave up to 21 weeks.

Health and Wellness

We care greatly about the health, safety and wellbeing of our employees. We
offer employee well-being programs, including an online therapy program and
access to an education platform with coaching to support working parents and
caretakers caring for children who have behavioral problems, autism or
developmental disabilities. We also provide access to programs to further assist
our employees in managing their lives outside of work, such as group legal
services to help with estate planning and surrogacy agreements. In addition,
during the COVID-19 pandemic we invested over $15.9 million and $28.7 million
for the years ended December 31, 2022 and 2021, respectively, in extensive
measures to ensure employee safety and wellbeing of our employees and their
families and the seamless functioning of the firm.

Data Privacy and Security

Blackstone is committed to privacy and data protection. These topics are
included in routine training received at least once annually by employees. Data
privacy is typically addressed in the Global Head of Compliance's annual update
to our board of directors. Blackstone's approach to data protection is set out
in our Online Privacy Notice and its Investor Data Privacy Notice. Our Data
Policy and Strategy Officer oversees privacy, data protection and information
risk management efforts, leading the privacy and data protection function, which
conducts privacy impact assessments, implements privacy-by-design initiatives
and reconciles global privacy programs with local privacy requirements. Our
privacy function also supports the Data Protection Operating Committee,
Blackstone's global privacy compliance steering committee.

Blackstone has built a dedicated cybersecurity team and maintains a
comprehensive cybersecurity program to protect our systems, our operations and
the data entrusted to us by our investors, employees, portfolio companies and
business partners. Blackstone's cybersecurity program is led by our Chief
Information Security Officer, who works closely with our senior management to
develop and advance the firm's cybersecurity strategy and regularly reports to
our board of directors and the audit committee of our board of directors on
cybersecurity matters. We believe that cybersecurity is a team effort - every
employee has a responsibility to help protect the firm and secure its data. We
conduct regular testing at least once a year to identify vulnerabilities before
they can be exploited by attackers, using automated tools and "white hat"
hackers. We examine and validate our program every two to three years with third
parties, measuring it against industry standards and established frameworks,
such as the National Institute of Standards and Technology and Center for
Internet Security
. We have a comprehensive Security Incident Response Plan to
ensure that any non-routine events are properly escalated. These plans are
validated at least annually through a cyber incident tabletop exercise to
consider the types of decisions that would need to be made in the event of a
cyber incident. We have engaged in scenario planning exercises around cyber



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Regulatory and Compliance Matters

Our businesses, as well as the financial services industry generally, are
subject to extensive regulation in the United States and in many of the markets
in which we operate.

Many of our businesses are subject to compliance with laws and regulations of
U.S. federal and state governments, non-U.S. governments, their respective
agencies and/or various self-regulatory organizations or exchanges. The SEC and
various self-regulatory organizations, state securities regulators and
international securities regulators have in recent years increased their
regulatory activities, including regulation, examination and enforcement in
respect of asset management firms, including Blackstone. Any failure to comply
with these regulations could expose us to liability and/or damage our
reputation. Our businesses have operated for many years within a legal framework
that requires us to monitor and comply with a broad range of legal and
regulatory developments that affect our activities. However, additional
legislation, changes in rules promulgated by financial regulatory authorities or
self-regulatory organizations or changes in the interpretation or enforcement of
existing laws and rules, either in the United States or abroad, may directly
affect our mode of operation and profitability.

All of the investment advisers of our investment funds operating in the U.S. are
registered as investment advisers with the SEC under the Advisers Act (other
investment advisers may be registered in non-U.S. jurisdictions). Registered
investment advisers are subject to the requirements and regulations of the
Advisers Act. Such requirements relate to, among other things, fiduciary duties
to advisory clients, maintaining an effective compliance program and code of
ethics, investment advisory contracts, solicitation agreements, conflicts of
interest, recordkeeping and reporting requirements, disclosure, advertising and
custody requirements, political contributions, limitations on agency cross and
principal transactions between an adviser and advisory clients, and general
anti-fraud prohibitions. Certain investment advisers are also registered with
international regulators in connection with their management of products that
are locally distributed and/or regulated.

Blackstone Securities Partners L.P. ("BSP"), a subsidiary through which we
conduct our capital markets business and certain of our fund marketing and
distribution, is registered as a broker-dealer with the SEC and is subject to
regulation and oversight by the SEC, is a member of the Financial Industry
Regulatory Authority
, or "FINRA," and is registered as a broker-dealer in 50
states, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin
. In addition, FINRA, a self-regulatory organization subject to oversight
by the SEC, adopts and enforces rules governing the conduct, and examines the
activities, of its member firms, including BSP. State securities regulators also
have regulatory oversight authority over BSP.

Broker-dealers are subject to regulations that cover all aspects of the
securities business, including, among others, the implementation of a
supervisory control system over the securities business, advertising and sales
practices, conduct of and compensation in connection with public securities
offerings, maintenance of adequate net capital, record keeping and the conduct
and qualifications of employees. In particular, as a registered broker-dealer
and member of FINRA, BSP is subject to the SEC's uniform net capital rule, Rule
15c3-1. Rule
specifies the minimum level of net capital a broker-dealer must maintain and
also requires that a significant part of a broker-dealer's assets be kept in
relatively liquid form. The SEC and various self-regulatory organizations impose
rules that require notification when net capital of a broker-dealer falls below
certain predefined criteria, limit the ratio of subordinated debt to equity in
the capital structure of a broker-dealer and constrain the ability of a
broker-dealer to expand its business under certain circumstances. Additionally,
the SEC's uniform net capital rule imposes certain requirements that may have
the effect of prohibiting a broker-dealer from distributing or withdrawing
capital and requiring prior notice to the SEC for certain withdrawals of

In addition, certain of the closed-end and open-end investment companies we
manage, advise or sub-advise are registered, or regulated as a BDC, under the
1940 Act. The 1940 Act and the rules thereunder govern, among other things, the
relationship between us and such investment vehicles and limit such investment
vehicles' ability to enter into certain transactions with us or our affiliates,
including other funds managed, advised or sub-advised by us.



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Pursuant to the U.K. Financial Services and Markets Act 2000, or "FSMA," certain
of our subsidiaries are subject to regulations promulgated and administered by
the Financial Conduct Authority ("FCA"). The FSMA and rules promulgated
thereunder form the cornerstone of legislation which governs all aspects of our
investment business in the United Kingdom, including sales, provision of
investment advice, use and safekeeping of client funds and securities,
regulatory capital, recordkeeping, approval standards for individuals,
anti-money laundering, periodic reporting and settlement procedures. The
Blackstone Group International Partners LLP
("BGIP") acts as a sub-advisor to
its Blackstone U.S. affiliates in relation to the investment and re-investment
of Europe, Middle East and Africa ("EMEA") based assets of Blackstone Funds,
arranging transactions to be entered into by or on behalf of Blackstone Funds,
and providing certain related services. Until December 31, 2020, BGIP had a
MiFID II (as defined herein) cross-border passport to provide investment
services into the European Economic Area ("EEA"). As of January 1, 2021, as a
result of the U.K.'s withdrawal from the European Union, BGIP no longer has a
MiFID II passport. Consequently, BGIP can only provide investment services in
certain EEA jurisdictions where it has obtained a domestic license on a
cross-border services basis (currently, Belgium, Denmark, Finland and Italy), or
can operate pursuant to an exemption or relief (currently Ireland, Lichtenstein
and Norway), although in certain cases with time limitations. BGIP's principal
place of business is in London and it has representative offices or corporate
branches in Abu Dhabi and France.

Blackstone Ireland Limited (formerly known as Blackstone / GSO Debt Funds
Management Europe Limited
) ("BIL") is authorized and regulated by the Central
Bank of Ireland
("CBI") as an Investment Firm under the (Irish) European Union
(Markets in Financial Instruments) Regulations 2017, which largely implements
MiFID II in Ireland. BIL's principal activity is the provision of management and
advisory services to certain CLO and sub-advisory services to certain
affiliates. Blackstone Ireland Fund Management Limited (formerly known as
Blackstone / GSO Debt Funds Management Europe II Limited) ("BIFM") is authorized
and regulated by the CBI as an Alternative Investment Fund Manager under the
(Irish) European Union (Alternative Investment Fund Managers Regulations) 2013
("AIFMRs"), which largely implements the EU Alternative Investment Fund Managers
Director ("AIFMD") in Ireland. BIFM acts as AIFM and provides investment
management functions including portfolio management, risk management,
administration, marketing and related activities to its alternative investment
funds in accordance with AIFMRs and the conditions imposed by the CBI as set out
in the CBI's alternative investment fund rulebook.

Blackstone Europe Fund Management S.à r.l. ("BEFM") is an authorized Alternative
Investment Fund Manager under the Luxembourg Law of 12 July 2013 on alternative
investment fund managers (as amended, the "AIFM Law"), which largely implements
AIFMD in Luxembourg. BEFM may also provide discretionary portfolio management
services, investment advice and reception and transmission of orders in
accordance with article 5(4) of the AIFM Law. BEFM provides investment
management functions including portfolio management, risk management,
administration, marketing and related activities to the assets of its
alternative investment funds, in accordance with the AIFM Law and the regulatory
provisions imposed by the
Commission de Surveillance du Secteur Financier
in Luxembourg. As of January 1, 2021, BEFM promotes Blackstone products and
services in European countries where BGIP is not otherwise licensed to do so.
BEFM has branches in Paris, Milan and Frankfurt which provides marketing
services and where distribution and deal sourcing individuals are based.

Certain Blackstone operating entities are licensed and subject to regulation by
financial regulatory authorities in Japan, Hong Kong, Australia and Singapore:
The Blackstone Group Japan K.K., a financial instruments firm, is registered
with Kanto Local Finance Bureau and regulated by the Japan Financial Services
; The Blackstone Group (HK) Limited is regulated by the Hong Kong
Securities and Futures Commission
; The Blackstone Group (Australia) Pty Limited
and Blackstone Real Estate Australia Pty Limited each holds an Australian
financial services license authorizing it to provide financial services in
Australia and is regulated by the Australian Securities and Investments
; and Blackstone Singapore Pte. Ltd. is regulated by the Monetary
Authority of Singapore



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Rigorous legal and compliance analysis of our businesses and investments is
endemic to our culture and risk management. Our Chief Legal Officer and Global
Head of Compliance, together with the Chief Compliance Officers of each of our
businesses, supervise our compliance personnel, who are responsible for
addressing the regulatory and compliance matters that affect our activities. We
strive to maintain a culture of compliance through the use of policies and
procedures including a code of ethics, electronic compliance systems, testing
and monitoring, communication of compliance guidance and employee education and
training. Our compliance policies and procedures address regulatory and
compliance matters such as the handling of material non-public information,
personal securities trading, marketing practices, gifts and entertainment,
anti-money laundering, anti-bribery and sanctions, valuation of investments on a
fund-specific basis, recordkeeping, potential conflicts of interest, the
allocation of investment and co-investment opportunities, collection of fees and
expense allocation.

Our compliance group also monitors the information barriers that we maintain
between Blackstone's businesses. We believe that our various businesses' access
to the intellectual knowledge and contacts and relationships that reside
throughout our firm benefits all of our businesses. To maximize that access and
related synergies without compromising compliance with our legal and contractual
obligations, our compliance group oversees and monitors the communications
between groups that are on the private side of our information barrier and
groups that are on the public side, as well as between different public side
groups. Our compliance group also monitors contractual obligations that may be
impacted and potential conflicts that may arise in connection with these
inter-group discussions.

In addition, disclosure controls and procedures and internal controls over
financial reporting are documented, tested and assessed for design and operating
effectiveness in accordance with the U.S. Sarbanes-Oxley Act of 2002. Internal
Audit, which independently reports to the audit committee of our board of
directors, operates with a global mandate and is responsible for the examination
and evaluation of the adequacy and effectiveness of the organization's
governance and risk management processes and internal controls, as well as the
quality of performance in carrying out assigned responsibilities to achieve the
organization's stated goals and objectives.

Our enterprise risk management framework is designed to manage non-investment
risk areas across the firm, such as strategic, financial, human capital, legal,
operational, regulatory, reputational and technology risks. Our enterprise risk
committee assists Blackstone management to identify, assess, monitor and
mitigate such key enterprise risks at the corporate, business unit and fund
level. The enterprise risk committee is chaired by our Chief Financial Officer
and is comprised of senior management across business units, corporate functions
and regions. Senior management reports to the audit committee of the board of
directors on the agenda of risk topics evaluated by the enterprise risk
committee and provides periodic risk reports, a summary of its view on key risks
to the firm and detailed assessments of selected risks, as applicable. Our
firmwide valuation committee reviews the valuation process for investments held
by us and our investment vehicles, including the application of appropriate
valuation standards on a consistent basis. The firmwide valuation committee is
chaired by our Chief Financial Officer and is comprised of senior heads of
Blackstone's businesses and representatives from legal and finance. The review
committees and/or investment committees of our businesses review and evaluate
investment opportunities in a framework that includes a qualitative and
quantitative assessment of the key risks of investments. See "- Investment
Process and Risk Management."

There are a number of pending or recently enacted legislative and regulatory
initiatives that could significantly affect our business. Please see "- Item 1A.
Risk Factors - Risks Related to Our Business - Financial regulatory changes in
the United States could adversely affect our business" and "- Complex regulatory
regimes and potential regulatory changes in jurisdictions outside the United
could adversely affect our business."



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Available Information

Effective August 6, 2021, The Blackstone Group Inc. changed its name to
Blackstone Inc. Effective July 1, 2019, Blackstone Inc. converted from a
Delaware limited partnership to a Delaware corporation. Blackstone was formed as
a Delaware limited partnership on March 12, 2007.

We file annual, quarterly and current reports and other information with the
SEC. These filings are available to the public over the internet at the SEC's
website at

Our principal internet address is We make available free of
charge on or through our annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on
Form 8-K,
and amendments to those reports, as soon as reasonably practicable after we
electronically file such material with, or furnish it to, the SEC. The contents
of our website are not, however, a part of this report.

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