Financial Assets and Liabilities at Fair Value |
The following
tables summarize the valuation of the Partnership’s financial
assets and liabilities by the fair value hierarchy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
|
|
Level I |
|
|
Level II |
|
|
Level
III |
|
|
NAV |
|
|
Total |
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents — Money Market Funds
|
|
$ |
471,940 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
471,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments of Consolidated
Blackstone Funds (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Funds
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
85,287 |
|
|
|
85,287 |
|
Equity
Securities
|
|
|
67,442 |
|
|
|
44,256 |
|
|
|
190,692 |
|
|
|
— |
|
|
|
302,390 |
|
Partnership and LLC
Interests
|
|
|
— |
|
|
|
6,714 |
|
|
|
329,474 |
|
|
|
— |
|
|
|
336,188 |
|
Debt Instruments
|
|
|
— |
|
|
|
758,340 |
|
|
|
101,076 |
|
|
|
— |
|
|
|
859,416 |
|
Freestanding
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
1,906 |
|
|
|
— |
|
|
|
— |
|
|
|
1,906 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
170 |
|
|
|
— |
|
|
|
— |
|
|
|
170 |
|
Total Return
Swaps
|
|
|
— |
|
|
|
233 |
|
|
|
— |
|
|
|
— |
|
|
|
233 |
|
Equity Options
|
|
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
— |
|
|
|
122 |
|
Assets of Consolidated CLO
Vehicles —Corporate Loans
|
|
|
— |
|
|
|
6,368,295 |
|
|
|
549,416 |
|
|
|
— |
|
|
|
6,917,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments of
Consolidated Blackstone Funds
|
|
|
67,442 |
|
|
|
7,180,036 |
|
|
|
1,170,658 |
|
|
|
85,287 |
|
|
|
8,503,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Treasury
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
|
316,771 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
316,771 |
|
Debt Instruments
|
|
|
406,164 |
|
|
|
1,880,805 |
|
|
|
17,038 |
|
|
|
— |
|
|
|
2,304,007 |
|
Other
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
262,832 |
|
|
|
262,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate Treasury
Investments
|
|
|
722,935 |
|
|
|
1,880,805 |
|
|
|
17,038 |
|
|
|
262,832 |
|
|
|
2,883,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Investments
|
|
|
202,453 |
|
|
|
— |
|
|
|
73,481 |
|
|
|
18,682 |
|
|
|
294,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments
|
|
|
992,830 |
|
|
|
9,060,841 |
|
|
|
1,261,177 |
|
|
|
366,801 |
|
|
|
11,681,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Receivable — Loans and Receivables
|
|
|
— |
|
|
|
— |
|
|
|
419,803 |
|
|
|
— |
|
|
|
419,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freestanding
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Contracts
|
|
|
2,109 |
|
|
|
34,551 |
|
|
|
— |
|
|
|
— |
|
|
|
36,660 |
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
961 |
|
|
|
— |
|
|
|
— |
|
|
|
961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
Assets
|
|
|
2,109 |
|
|
|
35,512 |
|
|
|
— |
|
|
|
— |
|
|
|
37,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,466,879 |
|
|
$ |
9,096,353 |
|
|
$ |
1,680,980 |
|
|
$ |
366,801 |
|
|
$ |
12,611,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2018 |
|
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
|
Total |
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Payable
— Liabilities of Consolidated CLO Vehicles
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Notes
(b)
|
|
$ |
— |
|
|
$ |
6,520,975 |
|
|
$ |
— |
|
|
$ |
6,520,975 |
|
Subordinated Notes
(b)
|
|
|
— |
|
|
|
158,623 |
|
|
|
— |
|
|
|
158,623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
Payable
|
|
|
— |
|
|
|
6,679,598 |
|
|
|
— |
|
|
|
6,679,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to Affiliates
— Liabilities of Consolidated CLO Vehicles
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Notes
(b)
|
|
|
— |
|
|
|
3,273 |
|
|
|
— |
|
|
|
3,273 |
|
Subordinated Notes
(b)
|
|
|
— |
|
|
|
65,259 |
|
|
|
— |
|
|
|
65,259 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Due to
Affiliates
|
|
|
— |
|
|
|
68,532 |
|
|
|
— |
|
|
|
68,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Sold, Not Yet
Purchased
|
|
|
35,374 |
|
|
|
130,936 |
|
|
|
— |
|
|
|
166,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable, Accrued
Expenses and Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities of Consolidated
Blackstone Funds — Freestanding Derivatives
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
1,504 |
|
|
|
— |
|
|
|
1,504 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
3,599 |
|
|
|
— |
|
|
|
3,599 |
|
Equity Options
|
|
|
— |
|
|
|
67 |
|
|
|
— |
|
|
|
67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities of
Consolidated Blackstone Funds
|
|
|
— |
|
|
|
5,170 |
|
|
|
— |
|
|
|
5,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freestanding
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Contracts
|
|
|
875 |
|
|
|
57,222 |
|
|
|
— |
|
|
|
58,097 |
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
2,190 |
|
|
|
— |
|
|
|
2,190 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
1,687 |
|
|
|
— |
|
|
|
1,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Freestanding
Derivatives
|
|
|
875 |
|
|
|
61,099 |
|
|
|
— |
|
|
|
61,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Payable,
Accrued Expenses and Other Liabilities
|
|
|
875 |
|
|
|
66,269 |
|
|
|
— |
|
|
|
67,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,249 |
|
|
$ |
6,945,335 |
|
|
$ |
— |
|
|
$ |
6,981,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017 |
|
|
|
Level I |
|
|
Level II |
|
|
Level
III |
|
|
NAV |
|
|
Total |
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
— Money Market Funds
|
|
$ |
853,680 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
853,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments of Consolidated
Blackstone Funds (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Funds
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
130,339 |
|
|
|
130,339 |
|
Equity
Securities
|
|
|
67,443 |
|
|
|
44,026 |
|
|
|
131,867 |
|
|
|
— |
|
|
|
243,336 |
|
Partnership and LLC
Interests
|
|
|
— |
|
|
|
2,549 |
|
|
|
331,448 |
|
|
|
— |
|
|
|
333,997 |
|
Debt Instruments
|
|
|
— |
|
|
|
643,608 |
|
|
|
58,155 |
|
|
|
— |
|
|
|
701,763 |
|
Freestanding
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
101 |
|
|
|
— |
|
|
|
— |
|
|
|
101 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
3,731 |
|
|
|
— |
|
|
|
— |
|
|
|
3,731 |
|
Total Return
Swaps
|
|
|
— |
|
|
|
526 |
|
|
|
— |
|
|
|
— |
|
|
|
526 |
|
Assets of Consolidated CLO
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Loans
|
|
|
— |
|
|
|
10,318,316 |
|
|
|
507,443 |
|
|
|
— |
|
|
|
10,825,759 |
|
Corporate Bonds
|
|
|
— |
|
|
|
690,125 |
|
|
|
— |
|
|
|
— |
|
|
|
690,125 |
|
Freestanding Derivatives
— Foreign Currency Contracts
|
|
|
— |
|
|
|
23,986 |
|
|
|
— |
|
|
|
— |
|
|
|
23,986 |
|
Other
|
|
|
— |
|
|
|
— |
|
|
|
458 |
|
|
|
— |
|
|
|
458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments of
Consolidated Blackstone Funds
|
|
|
67,443 |
|
|
|
11,726,968 |
|
|
|
1,029,371 |
|
|
|
130,339 |
|
|
|
12,954,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Treasury
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
|
282,866 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
282,866 |
|
Debt Instruments
|
|
|
— |
|
|
|
1,943,654 |
|
|
|
24,249 |
|
|
|
— |
|
|
|
1,967,903 |
|
Other
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
315,274 |
|
|
|
315,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Corporate Treasury
Investments
|
|
|
282,866 |
|
|
|
1,943,654 |
|
|
|
24,249 |
|
|
|
315,274 |
|
|
|
2,566,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Investments
|
|
|
193,072 |
|
|
|
14,162 |
|
|
|
95,393 |
|
|
|
19,847 |
|
|
|
322,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments
|
|
|
543,381 |
|
|
|
13,684,784 |
|
|
|
1,149,013 |
|
|
|
465,460 |
|
|
|
15,842,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Receivable — Loans and Receivables
|
|
|
— |
|
|
|
— |
|
|
|
239,659 |
|
|
|
— |
|
|
|
239,659 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freestanding
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Contracts
|
|
|
575 |
|
|
|
1,467 |
|
|
|
— |
|
|
|
— |
|
|
|
2,042 |
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
2,097 |
|
|
|
— |
|
|
|
— |
|
|
|
2,097 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
304 |
|
|
|
— |
|
|
|
— |
|
|
|
304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other
Assets
|
|
|
575 |
|
|
|
3,868 |
|
|
|
— |
|
|
|
— |
|
|
|
4,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,397,636 |
|
|
$ |
13,688,652 |
|
|
$ |
1,388,672 |
|
|
$ |
465,460 |
|
|
$ |
16,940,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2017 |
|
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
|
Total |
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Payable —
Liabilities of Consolidated CLO Vehicles (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Notes
(b)
|
|
$ |
— |
|
|
$ |
10,594,656 |
|
|
$ |
— |
|
|
$ |
10,594,656 |
|
Subordinated Notes
(b)
|
|
|
— |
|
|
|
703,164 |
|
|
|
— |
|
|
|
703,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans
Payable
|
|
|
— |
|
|
|
11,297,820 |
|
|
|
— |
|
|
|
11,297,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to Affiliates —
Liabilities of Consolidated CLO Vehicles (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Secured Notes
(b)
|
|
|
— |
|
|
|
996 |
|
|
|
— |
|
|
|
996 |
|
Subordinated Notes
(b)
|
|
|
— |
|
|
|
40,390 |
|
|
|
— |
|
|
|
40,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Due to
Affiliates
|
|
|
— |
|
|
|
41,386 |
|
|
|
— |
|
|
|
41,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Sold, Not Yet
Purchased
|
|
|
— |
|
|
|
154,380 |
|
|
|
— |
|
|
|
154,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable, Accrued
Expenses and Other Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities of Consolidated
Blackstone Funds — Freestanding Derivatives (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
5,628 |
|
|
|
— |
|
|
|
5,628 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
5,163 |
|
|
|
— |
|
|
|
5,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities of
Consolidated Blackstone Funds
|
|
|
— |
|
|
|
10,791 |
|
|
|
— |
|
|
|
10,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freestanding
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate
Contracts
|
|
|
415 |
|
|
|
26,860 |
|
|
|
— |
|
|
|
27,275 |
|
Foreign Currency
Contracts
|
|
|
— |
|
|
|
2,975 |
|
|
|
— |
|
|
|
2,975 |
|
Credit Default
Swaps
|
|
|
— |
|
|
|
304 |
|
|
|
— |
|
|
|
304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Freestanding
Derivatives
|
|
|
415 |
|
|
|
30,139 |
|
|
|
— |
|
|
|
30,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Hedges
— Foreign Currency Contracts
|
|
|
— |
|
|
|
453 |
|
|
|
— |
|
|
|
453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Payable,
Accrued Expenses and Other Liabilities
|
|
|
415 |
|
|
|
41,383 |
|
|
|
— |
|
|
|
41,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
415 |
|
|
$ |
11,534,969 |
|
|
$ |
— |
|
|
$ |
11,535,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Pursuant to GAAP consolidation guidance, the Partnership is
required to consolidate all VIEs in which it has been identified as
the primary beneficiary, including certain CLO vehicles and other
funds in which a consolidated entity of the Partnership, as the
general partner of the fund, has a controlling financial interest.
While the Partnership is required to consolidate certain funds,
including CLO vehicles, for GAAP purposes, the Partnership has no
ability to utilize the assets of these funds and there is no
recourse to the Partnership for their liabilities since these are
client assets and liabilities.
|
(b) |
Senior and subordinate notes issued by CLO vehicles are
classified based on the more observable fair value of CLO assets
less (1) the fair value of any beneficial interests held by
Blackstone, and (2) the carrying value of any beneficial
interests that represent compensation for services.
|
|
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy |
The following
table summarizes the quantitative inputs and assumptions used for
items categorized in Level III of the fair value hierarchy as
of September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value |
|
|
Valuation
Techniques |
|
Unobservable
Inputs |
|
|
Ranges |
|
Weighted-
Average (a)
|
Financial
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments of Consolidated Blackstone
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
$ |
128,731 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
7.1% - 26.1% |
|
12.4% |
|
|
|
|
|
|
|
|
|
Revenue CAGR |
|
|
-12.2% - 45.4% |
|
7.3% |
|
|
|
|
|
|
|
|
|
Book Value Multiple |
|
|
1.1x - 9.5x |
|
8.4x |
|
|
|
|
|
|
|
|
|
Exit Capitalization Rate |
|
|
5.0% - 11.4% |
|
8.0% |
|
|
|
|
|
|
|
|
|
Exit Multiple - EBITDA |
|
|
2.6x - 17.5x |
|
10.4x |
|
|
|
|
|
|
|
|
|
Exit Multiple - NOI |
|
|
8.8x - 12.8x |
|
11.9x |
|
|
|
|
|
|
|
|
|
Exit Multiple - P/E |
|
|
10.0x - 17.0x |
|
14.2x |
|
|
|
1,516 |
|
|
Market Comparable Companies |
|
|
Book Value Multiple |
|
|
0.8x - 8.0x |
|
1.4x |
|
|
|
34,220 |
|
|
Other |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
26,225 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Partnership and LLC Interests
|
|
|
279,686 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
4.5% - 26.5% |
|
9.7% |
|
|
|
|
|
|
|
|
|
Revenue CAGR |
|
|
-3.0% - 45.5% |
|
7.5% |
|
|
|
|
|
|
|
|
|
Book Value Multiple |
|
|
8.5x - 9.3x |
|
9.2x |
|
|
|
|
|
|
|
|
|
Exit Capitalization Rate |
|
|
1.5% - 12.3% |
|
6.1% |
|
|
|
|
|
|
|
|
|
Exit Multiple - EBITDA |
|
|
0.1x - 15.2x |
|
9.5x |
|
|
|
|
|
|
|
|
|
Exit Multiple - NOI |
|
|
13.3x |
|
N/A |
|
|
|
626 |
|
|
Market Comparable Companies |
|
|
Book Value Multiple |
|
|
1.1x |
|
N/A |
|
|
|
10,755 |
|
|
Other |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
609 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
37,798 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Debt Instruments
|
|
|
5,510 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
7.8% - 16.7% |
|
9.7% |
|
|
|
|
|
|
|
|
|
Exit Capitalization Rate |
|
|
3.9% |
|
N/A |
|
|
|
93,648 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
1,918 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Assets of Consolidated CLO
Vehicles
|
|
|
41 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
6.0% |
|
N/A |
|
|
|
549,375 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments of Consolidated Blackstone
Funds
|
|
|
1,170,658 |
|
|
|
|
|
|
|
|
|
|
|
Corporate Treasury
Investments
|
|
|
7,541 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
5.2% - 6.2% |
|
5.6% |
|
|
|
|
|
|
|
|
|
Default Rate |
|
|
2.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Pre-payment
Rate |
|
|
20.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Lag |
|
|
12 Months |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Rate |
|
|
30.0% - 70.0% |
|
68.0% |
|
|
|
|
|
|
|
|
|
Reinvestment Rate |
|
|
LIBOR + 400 bps |
|
N/A |
|
|
|
9,497 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
Loans and
Receivables
|
|
|
353,494 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
4.4% - 12.9% |
|
8.9% |
|
|
|
66,309 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Other
Investments
|
|
|
27,758 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
0.8% - 9.6% |
|
2.0% |
|
|
|
|
|
|
|
|
|
Default Rate |
|
|
2.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Pre-payment
Rate |
|
|
20.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Lag |
|
|
12 Months |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Rate |
|
|
70.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Reinvestment Rate |
|
|
LIBOR + 400 bps |
|
N/A |
|
|
|
45,723 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,680,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
table summarizes the quantitative inputs and assumptions used for
items categorized in Level III of the fair value hierarchy as
of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value |
|
|
Valuation
Techniques |
|
Unobservable
Inputs |
|
|
Ranges |
|
Weighted-
Average (a) |
Financial
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments of Consolidated
Blackstone Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Securities
|
|
$ |
91,753 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
7.1% - 31.4% |
|
12.6% |
|
|
|
|
|
|
|
|
|
Revenue CAGR |
|
|
1.0% - 49.4% |
|
7.1% |
|
|
|
|
|
|
|
|
|
Exit Capitalization Rate |
|
|
5.0% - 11.4% |
|
8.5% |
|
|
|
|
|
|
|
|
|
Exit Multiple - EBITDA |
|
|
4.0x - 16.0x |
|
9.9x |
|
|
|
|
|
|
|
|
|
Exit Multiple - NOI |
|
|
8.8x - 12.5x |
|
10.5x |
|
|
|
|
|
|
|
|
|
Exit Multiple - P/E |
|
|
9.5x - 17.0x |
|
11.0x |
|
|
|
862 |
|
|
Market Comparable Companies |
|
|
Book Value Multiple |
|
|
0.8x - 0.9x |
|
0.9x |
|
|
|
|
|
|
|
|
|
Exit Multiple - EBITDA |
|
|
8.0x |
|
N/A |
|
|
|
17,536 |
|
|
Other |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
21,716 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Partnership and LLC Interests
|
|
|
293,744 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
4.6% - 26.5% |
|
9.8% |
|
|
|
|
|
|
|
|
|
Revenue CAGR |
|
|
-22.2% - 71.5% |
|
8.4% |
|
|
|
|
|
|
|
|
|
Exit Capitalization Rate |
|
|
3.1% - 10.0% |
|
5.7% |
|
|
|
|
|
|
|
|
|
Exit Multiple - EBITDA |
|
|
0.1x - 15.0x |
|
8.6x |
|
|
|
|
|
|
|
|
|
Exit Multiple - NOI |
|
|
12.5x |
|
N/A |
|
|
|
530 |
|
|
Market Comparable Companies |
|
|
Book Value Multiple |
|
|
1.0x |
|
N/A |
|
|
|
22,346 |
|
|
Other |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
758 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
14,070 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Debt Instruments
|
|
|
6,122 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
6.6% - 18.4% |
|
9.6% |
|
|
|
|
|
|
|
|
|
Revenue CAGR |
|
|
7.7% |
|
N/A |
|
|
|
|
|
|
|
|
|
Exit Capitalization Rate |
|
|
8.3% |
|
N/A |
|
|
|
|
|
|
|
|
|
Exit Multiple - NOI |
|
|
12.0x |
|
N/A |
|
|
|
50,136 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
1,897 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
Assets of Consolidated CLO
Vehicles
|
|
|
8,277 |
|
|
Market Comparable Companies |
|
|
EBITDA Multiple |
|
|
7.0x |
|
N/A |
|
|
|
499,624 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments of Consolidated Blackstone
Funds
|
|
|
1,029,371 |
|
|
|
|
|
|
|
|
|
|
|
Corporate Treasury
Investments
|
|
|
8,886 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
5.1% - 6.3% |
|
5.4% |
|
|
|
|
|
|
|
|
|
Default Rate |
|
|
2.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Pre-payment
Rate |
|
|
20% |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Lag |
|
|
12 Months |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Rate |
|
|
30.0% - 70.0% |
|
68.1% |
|
|
|
|
|
|
|
|
|
Reinvestment Rate |
|
|
LIBOR + 400 bps |
|
N/A |
|
|
|
15,363 |
|
|
Third Party Pricing |
|
|
N/A |
|
|
N/A |
|
N/A |
Loans and
Receivables
|
|
|
239,659 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
7.1% - 10.3% |
|
8.8% |
Other
Investments
|
|
|
65,821 |
|
|
Discounted Cash Flows |
|
|
Discount Rate |
|
|
0.7% - 13.0% |
|
2.2% |
|
|
|
|
|
|
|
|
|
Default Rate |
|
|
2.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Pre-payment
Rate |
|
|
20.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Lag |
|
|
12 Months |
|
N/A |
|
|
|
|
|
|
|
|
|
Recovery Rate |
|
|
70.0% |
|
N/A |
|
|
|
|
|
|
|
|
|
Reinvestment Rate |
|
|
LIBOR + 400 bps - |
|
LIBOR + 401 |
|
|
|
|
|
|
|
|
|
|
|
|
LIBOR + 413 bps |
|
bps |
|
|
|
29,572 |
|
|
Transaction Price |
|
|
N/A |
|
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,388,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A |
|
Not applicable. |
CAGR |
|
Compound annual growth rate. |
EBITDA |
|
Earnings before interest, taxes, depreciation and
amortization. |
Exit Multiple |
|
Ranges include the last twelve months EBITDA, forward
EBITDA and price/earnings exit multiples. |
NOI |
|
Net operating income. |
P/E |
|
Price-earnings ratio. |
Third Party Pricing |
|
Third Party Pricing is generally determined on the basis
of unadjusted prices between market participants provided by
reputable dealers or pricing services. |
Transaction Price |
|
Includes recent acquisitions or transactions. |
(a) |
|
Unobservable inputs were weighted based on the fair value
of the investments included in the range. |
|
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used |
The following
tables summarize the changes in financial assets and liabilities
measured at fair value for which the Partnership has used
Level III inputs to determine fair value and does not include
gains or losses that were reported in Level III in prior years
or for instruments that were transferred out of Level III
prior to the end of the respective reporting period. Total realized
and unrealized gains and losses recorded for Level III
investments are reported in either Investment Income (Loss) or Net
Gains from Fund Investment Activities in the Condensed Consolidated
Statements of Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level III Financial
Assets at Fair Value
Three Months
Ended September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
Investments
of
Consolidated
Funds |
|
|
Loans and
Receivables |
|
|
Other
Investments (a) |
|
|
Total |
|
|
Investments
of
Consolidated
Funds |
|
|
Loans and
Receivables |
|
|
Other
Investments (a) |
|
|
Total |
|
Balance, Beginning of
Period
|
|
$ |
1,086,724 |
|
|
$ |
346,603 |
|
|
$ |
114,723 |
|
|
$ |
1,548,050 |
|
|
$ |
715,744 |
|
|
$ |
306,279 |
|
|
$ |
115,689 |
|
|
$ |
1,137,712 |
|
Transfer In to Level III
(b)
|
|
|
255,398 |
|
|
|
— |
|
|
|
5,299 |
|
|
|
260,697 |
|
|
|
145,810 |
|
|
|
— |
|
|
|
5,859 |
|
|
|
151,669 |
|
Transfer Out of Level III
(b)
|
|
|
(221,162 |
) |
|
|
— |
|
|
|
(11,192 |
) |
|
|
(232,354 |
) |
|
|
(62,821 |
) |
|
|
— |
|
|
|
(721 |
) |
|
|
(63,542 |
) |
Purchases
|
|
|
156,527 |
|
|
|
347,890 |
|
|
|
15,754 |
|
|
|
520,171 |
|
|
|
300,037 |
|
|
|
241,006 |
|
|
|
3,250 |
|
|
|
544,293 |
|
Sales
|
|
|
(119,593 |
) |
|
|
(274,817 |
) |
|
|
(69,272 |
) |
|
|
(463,682 |
) |
|
|
(154,131 |
) |
|
|
(174,814 |
) |
|
|
(6,723 |
) |
|
|
(335,668 |
) |
Settlements
|
|
|
— |
|
|
|
(8,397 |
) |
|
|
— |
|
|
|
(8,397 |
) |
|
|
— |
|
|
|
(4,469 |
) |
|
|
(370 |
) |
|
|
(4,839 |
) |
Changes in Gains Included
in Earnings
|
|
|
12,764 |
|
|
|
8,524 |
|
|
|
35,207 |
|
|
|
56,495 |
|
|
|
27,116 |
|
|
|
3,730 |
|
|
|
3,232 |
|
|
|
34,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, End of
Period
|
|
$ |
1,170,658 |
|
|
$ |
419,803 |
|
|
$ |
90,519 |
|
|
$ |
1,680,980 |
|
|
$ |
971,755 |
|
|
$ |
371,732 |
|
|
$ |
120,216 |
|
|
$ |
1,463,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Unrealized Gains
(Losses) Included in Earnings Related to Investments Still Held at
the Reporting Date
|
|
$ |
8,229 |
|
|
$ |
8,523 |
|
|
$ |
5,431 |
|
|
$ |
22,183 |
|
|
$ |
20,207 |
|
|
$ |
3,730 |
|
|
$ |
(446 |
) |
|
$ |
23,491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Level III Financial
Assets at Fair Value
Nine Months
Ended September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
Investments
of
Consolidated
Funds |
|
|
Loans and
Receivables |
|
|
Other
Investments (a) |
|
|
Total |
|
|
Investments
of
Consolidated
Funds |
|
|
Loans and
Receivables |
|
|
Other
Investments (a) |
|
|
Total |
|
Balance, Beginning of
Period
|
|
$ |
1,029,371 |
|
|
$ |
239,659 |
|
|
$ |
119,642 |
|
|
$ |
1,388,672 |
|
|
$ |
685,873 |
|
|
$ |
211,359 |
|
|
$ |
130,588 |
|
|
$ |
1,027,820 |
|
Transfer In Due to
Consolidation and Acquisition
|
|
|
50,043 |
|
|
|
— |
|
|
|
— |
|
|
|
50,043 |
|
|
|
34,651 |
|
|
|
— |
|
|
|
|
|
|
|
34,651 |
|
Transfer Out Due to
Deconsolidation
|
|
|
(217,182 |
) |
|
|
— |
|
|
|
— |
|
|
|
(217,182 |
) |
|
|
(38,629 |
) |
|
|
— |
|
|
|
— |
|
|
|
(38,629 |
) |
Transfer In to Level III
(b)
|
|
|
160,125 |
|
|
|
— |
|
|
|
5,299 |
|
|
|
165,424 |
|
|
|
99,042 |
|
|
|
— |
|
|
|
22,254 |
|
|
|
121,296 |
|
Transfer Out of
Level III (b)
|
|
|
(117,372 |
) |
|
|
— |
|
|
|
(26,909 |
) |
|
|
(144,281 |
) |
|
|
(138,299 |
) |
|
|
— |
|
|
|
(18,732 |
) |
|
|
(157,031 |
) |
Purchases
|
|
|
590,153 |
|
|
|
718,811 |
|
|
|
35,567 |
|
|
|
1,344,531 |
|
|
|
584,519 |
|
|
|
578,711 |
|
|
|
24,853 |
|
|
|
1,188,083 |
|
Sales
|
|
|
(374,479 |
) |
|
|
(538,520 |
) |
|
|
(92,751 |
) |
|
|
(1,005,750 |
) |
|
|
(319,350 |
) |
|
|
(426,315 |
) |
|
|
(50,769 |
) |
|
|
(796,434 |
) |
Settlements
|
|
|
— |
|
|
|
(17,376 |
) |
|
|
(4 |
) |
|
|
(17,380 |
) |
|
|
— |
|
|
|
(8,362 |
) |
|
|
(1,463 |
) |
|
|
(9,825 |
) |
Changes in Gains Included
in Earnings
|
|
|
49,999 |
|
|
|
17,229 |
|
|
|
49,675 |
|
|
|
116,903 |
|
|
|
63,948 |
|
|
|
16,339 |
|
|
|
13,485 |
|
|
|
93,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, End of
Period
|
|
$ |
1,170,658 |
|
|
$ |
419,803 |
|
|
$ |
90,519 |
|
|
$ |
1,680,980 |
|
|
$ |
971,755 |
|
|
$ |
371,732 |
|
|
$ |
120,216 |
|
|
$ |
1,463,703 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Unrealized Gains
Included in Earnings Related to Investments Still Held at the
Reporting Date
|
|
$ |
11,670 |
|
|
$ |
17,229 |
|
|
$ |
5,049 |
|
|
$ |
33,948 |
|
|
$ |
19,854 |
|
|
$ |
16,340 |
|
|
$ |
16 |
|
|
$ |
36,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Represents corporate treasury investments and Other
Investments.
|
(b) |
Transfers in and out of Level III financial assets and
liabilities were due to changes in the observability of inputs used
in the valuation of such assets and liabilities.
|
|