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Fair Value Measurements of Financial Instruments
 12 Months Ended
Dec. 31, 2022
Fair Value Measurements of Financial Instruments
8.    Fair Value Measurements of Financial Instruments
The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy:
 
                                                                                                                              
    
December 31, 2022
    
Level I
   
Level II
   
Level III
   
NAV
   
Total
Assets
                                             
Cash and Cash Equivalents
   
$
1,134,733
 
   
$
—
 
   
$
—
 
   
$
—
 
   
$
1,134,733
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Investments
                                             
Investments of Consolidated Blackstone Funds
                                             
Equity Securities, Partnerships and LLC Interests (a)
   
 
12,024
 
   
 
149,689
 
   
 
4,195,859
 
   
 
596,708
 
   
 
4,954,280
 
Debt Instruments
   
 
—
 
   
 
53,787
 
   
 
53,973
 
   
 
—
 
   
 
107,760
 
Freestanding Derivatives
   
 
—
 
   
 
74,926
 
   
 
—
 
   
 
—
 
   
 
74,926
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Investments of Consolidated Blackstone Funds
   
 
12,024
 
   
 
278,402
 
   
 
4,249,832
 
   
 
596,708
 
   
 
5,136,966
 
Corporate Treasury Investments
   
 
116,266
 
   
 
931,406
 
   
 
5,868
 
   
 
—
 
   
 
1,053,540
 
Other Investments (b)
   
 
1,473,611
 
   
 
1,597,696
 
   
 
51,155
 
   
 
5,985
 
   
 
3,128,447
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Investments
   
 
1,601,901
 
   
 
2,807,504
 
   
 
4,306,855
 
   
 
602,693
 
   
 
9,318,953
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Accounts Receivable — Loans and Receivables
   
 
—
 
   
 
—
 
   
 
315,039
 
   
 
—
 
   
 
315,039
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Other Assets — Freestanding Derivatives
   
 
279
 
   
 
196,188
 
   
 
6,210
 
   
 
—
 
   
 
202,677
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
    
$
2,736,913
 
   
$
3,003,692
 
   
$
4,628,104
 
   
$
602,693
 
   
$
10,971,402
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Liabilities
                                             
Securities Sold, Not Yet Purchased
   
$
3,825
 
   
$
—
 
   
$
—
 
   
$
—
 
   
$
3,825
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Accounts Payable, Accrued Expenses and Other Liabilities
                                             
Consolidated Blackstone Funds — Freestanding Derivatives
   
 
—
 
   
 
284
 
   
 
—
 
   
 
—
 
   
 
284
 
Freestanding Derivatives (c)
   
 
21
 
   
 
88,161
 
   
 
48,581
 
   
 
—
 
   
 
136,763
 
Corporate Treasury Commitments (d)
   
 
—
 
   
 
—
 
   
 
8,144
 
   
 
—
 
   
 
8,144
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Accounts Payable, Accrued Expenses and Other Liabilities
   
 
21
 
   
 
88,445
 
   
 
56,725
 
   
 
—
 
   
 
145,191
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
    
$
3,846
 
   
$
88,445
 
   
$
56,725
 
   
$
—
 
   
$
149,016
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
                                                                                                                              
    
December 31, 2021
    
Level I
   
Level II
   
Level III
   
NAV
   
Total
Assets
                                             
Cash and Cash Equivalents
   
$
173,408
 
   
$
—
 
   
$
—
 
   
$
—
 
   
$
173,408
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Investments
                                             
Investments of Consolidated Blackstone Funds
                                             
Investment Funds
   
 
—
 
   
 
—
 
   
 
—
 
   
 
18,365
 
   
 
18,365
 
Equity Securities, Partnerships and LLC Interests (a)
   
 
70,484
 
   
 
122,068
 
   
 
1,170,362
 
   
 
363,902
 
   
 
1,726,816
 
Debt Instruments
   
 
642
 
   
 
242,393
 
   
 
29,953
 
   
 
—
 
   
 
272,988
 
Freestanding Derivatives
   
 
—
 
   
 
660
 
   
 
—
 
   
 
—
 
   
 
660
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Investments of Consolidated Blackstone Funds
   
 
71,126
 
   
 
365,121
 
   
 
1,200,315
 
   
 
382,267
 
   
 
2,018,829
 
Corporate Treasury Investments
   
 
86,877
 
   
 
570,712
 
   
 
477
 
   
 
—
 
   
 
658,066
 
Other Investments (b)
   
 
478,892
 
   
 
210,752
 
   
 
2,518,032
 
   
 
4,845
 
   
 
3,212,521
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Investments
   
 
636,895
 
   
 
1,146,585
 
   
 
3,718,824
 
   
 
387,112
 
   
 
5,889,416
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Accounts Receivable — Loans and Receivables
   
 
—
 
   
 
—
 
   
 
392,732
 
   
 
—
 
   
 
392,732
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Other Assets — Freestanding Derivatives
   
 
113
 
   
 
145,288
 
   
 
—
 
   
 
—
 
   
 
145,401
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
    
$
810,416
 
   
$
1,291,873
 
   
$
4,111,556
 
   
$
387,112
 
   
$
6,600,957
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Liabilities
                                             
Securities Sold, Not Yet Purchased
   
$
4,292
 
   
$
23,557
 
   
$
—
 
   
$
—
 
   
$
27,849
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Accounts Payable, Accrued Expenses and Other Liabilities
                                             
Consolidated Blackstone Funds — Freestanding Derivatives
   
 
—
 
   
 
1,933
 
   
 
—
 
   
 
—
 
   
 
1,933
 
Freestanding Derivatives
   
 
323
 
   
 
145,552
 
   
 
—
 
   
 
—
 
   
 
145,875
 
Corporate Treasury Commitments 
(d)
   
 
—
 
   
 
—
 
   
 
636
 
   
 
—
 
   
 
636
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
Total Accounts Payable, Accrued Expenses and Other Liabilities
   
 
323
 
   
 
147,485
 
   
 
636
 
   
 
—
 
   
 
148,444
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
    
$
4,615
 
   
$
171,042
 
   
$
636
 
   
$
—
 
   
$
176,293
 
    
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
   
 
 
 
 
LLC
Limited Liability Company.
(a)
Equity Securities, Partnership and LLC Interest includes investments in investment funds. Prior period amounts have been reclassified to this presentation.
(b)
Other Investments includes Blackstone’s ownership of common stock of Corebridge. Following Corebridge’s IPO in September 2022, a quoted price for Corebridge’s common shares exists and as such the investment will be measured at fair value on a recurring basis as a Level I investment. Blackstone’s investment in Corebridge was previously valued as a Level III investment on a nonrecurring basis using the measurement alternative. See Note 4. “Investments — Other Investments” for additional details.
(c)
Level III freestanding derivatives are valued using an option pricing model where the significant inputs include the expected return and expected volatility.
(d)
Corporate Treasury Commitments are measured using third party pricing.
 
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, 2022:
 
                                                                                                                                   
                          
Impact to
                          
Valuation
                          
from an
        
Valuation
   
Unobservable
       
Weighted-
  
Increase
   
Fair Value
   
Techniques
   
Inputs
   
Ranges
  
Average (a)
  
in Input
Financial Assets
                               
Investments of Consolidated Blackstone Funds
                               
Equity Securities, Partnership and LLC Interests
  
$
4,195,859
 
   
Discounted Cash Flows
   
Discount Rate
   
4.1% - 34.5%
  
8.8%
  
Lower
                 
Exit Multiple - EBITDA
   
4.0x - 30.6x
  
14.7x
  
Higher
                 
Exit Capitalization Rate
   
2.6% - 14.4%
  
4.7%
  
Lower
            
Transaction Price
   
n/a
             
Debt Instruments
  
 
53,973
 
   
Transaction Price
   
n/a
   
 
   
            
Third Party Pricing
   
n/a
             
   
 
 
 
                       
Total Investments of Consolidated Blackstone Funds
  
 
4,249,832
 
                       
Corporate Treasury Investments
  
 
5,868
 
   
Third Party Pricing
   
n/a
   
 
   
Loans and Receivables
  
 
315,039
 
   
Discounted Cash Flows
   
Discount Rate
   
7.6% - 11.5%
  
9.8%
  
Lower
Other Investments (b)
  
 
57,365
 
   
Transaction Price
   
n/a
   
 
   
            
Third Party Pricing
   
n/a
   
 
   
   
 
 
 
                       
   
$
4,628,104
 
                       
   
 
 
 
                       
 
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, 2021:
 
                                                                                                                                           
                          
Impact to
                          
Valuation
                          
from an
        
Valuation
   
Unobservable
       
Weighted-
  
Increase
   
Fair Value
   
Techniques
   
Inputs
   
Ranges
  
Average (a)
  
in Input
Financial Assets
                                       
Investments of Consolidated Blackstone Funds
                                       
Equity Securities, Partnership and LLC Interests
  
$
1,170,362
 
   
 
Discounted Cash Flows
 
   
 
Discount Rate
 
   
1.3% - 43.3%
  
10.4%
  
Lower
                     
 
Exit Multiple - EBITDA
 
   
3.7x - 31.4x
  
14.7x
  
Higher
                     
 
Exit Capitalization Rate
 
   
1.3% - 17.3%
  
4.9%
  
Lower
Debt Instruments
  
 
29,953
 
   
 
Discounted Cash Flows
 
   
 
Discount Rate
 
   
6.5% - 19.3%
  
9.0%
  
Lower
            
 
Third Party Pricing
 
   
 
n/a
 
             
   
 
 
 
                               
Total Investments of Consolidated Blackstone Funds
  
 
1,200,315
 
                               
Corporate Treasury Investments
  
 
477
 
   
 
Discounted Cash Flows
 
   
 
Discount Rate
 
   
9.4
%
  
n/a
  
Lower
            
 
Third Party Pricing
 
   
 
n/a
 
             
Loans and Receivables
  
 
392,732
 
   
 
Discounted Cash Flows
 
   
 
Discount Rate
 
   
6.5% - 12.2%
  
7.6%
  
Lower
Other Investments
  
 
2,518,032
 
   
 
Third Party Pricing
 
   
 
n/a
 
             
            
 
Transaction Price
 
   
 
n/a
 
             
   
 
 
 
                               
   
$
4,111,556
 
                               
   
 
 
 
                               
 
n/a
  
Not applicable.
EBITDA
  
Earnings before interest, taxes, depreciation and amortization.
Exit Multiple
  
Ranges include the last twelve months EBITDA and forward EBITDA multiples.
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.
(b)
  
As of December 31, 2022, Other Investments includes Level III Freestanding Derivatives.
During the year ended December 31, 2022, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments.
The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone 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. These tables also exclude financial assets and liabilities measured at fair value on a non-recurring basis. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Consolidated Statements of Operations.
 
                                                                                                                                                                                                         
    
Level III Financial Assets at Fair Value
    
Year Ended December 31,
    
2022
  
2021
    
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
   
$
1,200,315
 
  
$
392,732
 
  
$
43,987
 
  
$
1,637,034
 
  
$
858,310
 
  
$
581,079
 
  
$
46,158
 
  
$
1,485,547
 
Transfer In Due to Consolidation and Acquisition
   
 
2,985,171
 
  
 
—
 
  
 
—
 
  
 
2,985,171
 
  
 
—
 
  
 
—
 
  
 
—
 
  
 
—
 
Transfer In to Level III (b)
   
 
2,040
 
  
 
—
 
  
 
2,517
 
  
 
4,557
 
  
 
8,254
 
  
 
—
 
  
 
14,162
 
  
 
22,416
 
Transfer Out of Level III (b)
   
 
(76,621
) 
  
 
—
 
  
 
(19,597
) 
  
 
(96,218
) 
  
 
(111,952
) 
  
 
—
 
  
 
(16,388
) 
  
 
(128,340
) 
Purchases
   
 
636,338
 
  
 
805,375
 
  
 
14,524
 
  
 
1,456,237
 
  
 
381,826
 
  
 
955,236
 
  
 
225,297
 
  
 
1,562,359
 
Sales
   
 
(428,379
) 
  
 
(882,668
) 
  
 
(3,797
) 
  
 
(1,314,844
) 
  
 
(292,843
) 
  
 
(1,132,405
) 
  
 
(226,866
) 
  
 
(1,652,114
) 
Issuances
   
 
—
 
  
 
39,514
 
  
 
—
 
  
 
39,514
 
  
 
—
 
  
 
58,221
 
  
 
—
 
  
 
58,221
 
Settlements
   
 
—
 
  
 
(55,308
) 
  
 
(4,433
) 
  
 
(59,741
) 
  
 
—
 
  
 
(85,444
) 
  
 
—
 
  
 
(85,444
) 
Changes in Gains (Losses) Included in Earnings
   
 
(69,032
) 
  
 
15,394
 
  
 
(2,230
) 
  
 
(55,868
) 
  
 
356,720
 
  
 
16,045
 
  
 
1,624
 
  
 
374,389
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Balance, End of Period
   
$
4,249,832
 
  
$
315,039
 
  
$
30,971
 
  
$
4,595,842
 
  
$
1,200,315
 
  
$
392,732
 
  
$
43,987
 
  
$
1,637,034
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date
   
$
(136,037
) 
  
$
(13,384
) 
  
$
(11,271
) 
  
$
(160,692
) 
  
$
298,740
 
  
$
(9,005
) 
  
$
1,412
 
  
$
291,147
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
(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.