Blackstone 8-K: Affiliate Transactions & Fund Investments

TL;DR

Blackstone's 8-K details affiliate payables and how performance fees are split, impacting fund accounting.

AI Summary

Blackstone Inc. filed an 8-K on November 25, 2024, reporting on financial statements and exhibits. The filing details components of 'Due to Affiliates,' including preferred stock and clawback allocations based on individual investment performance rather than fund performance. It also clarifies that equity securities include investments in other investment funds.

Why It Matters

This filing provides clarity on how Blackstone accounts for affiliate transactions and allocates performance compensation, which can impact investor understanding of the company's financial structure.

Risk Assessment

Risk Level: low — The filing is primarily informational, detailing accounting practices and financial statement components without announcing significant new risks or events.

Key Players & Entities

• Blackstone Inc. (company) — Filer of the 8-K
• Series I preferred stock (dollar_amount) — Component of 'Due to Affiliates'
• Series II preferred stock (dollar_amount) — Component of 'Due to Affiliates'

FAQ

From the Filing

0001193125-24-264461.txt : 20241125 0001193125-24-264461.hdr.sgml : 20241125 20241122173636 ACCESSION NUMBER: 0001193125-24-264461 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 144 CONFORMED PERIOD OF REPORT: 20241122 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20241125 DATE AS OF CHANGE: 20241122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Blackstone Inc. CENTRAL INDEX KEY: 0001393818 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] ORGANIZATION NAME: 02 Finance IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33551 FILM NUMBER: 241491110 BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154 BUSINESS PHONE: (212) 583-5000 MAIL ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154 FORMER COMPANY: FORMER CONFORMED NAME: Blackstone Inc DATE OF NAME CHANGE: 20210806 FORMER COMPANY: FORMER CONFORMED NAME: Blackstone Group Inc DATE OF NAME CHANGE: 20190628 FORMER COMPANY: FORMER CONFORMED NAME: Blackstone Group L.P. DATE OF NAME CHANGE: 20070320 8-K 1 d888166d8k.htm 8-K 8-K false 0001393818 During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent. Total is a component of Due to Affiliates. See Note 18. “Related Party Transactions — Affiliate Receivables and Payables — Due to Affiliates.” The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. Equity Securities, Partnership and LLC Interest includes investments in investment funds. Fee related performance compensation may include equity-based compensation based on fee related performance revenues. The volatility of the historical performance of the underlying reference entity is used to project the expected returns relevant for the fair value of the derivative. As of December 31, 2023, Other Liabilities includes Level III Contingent Consideration and Level III Corporate Treasury Commitments. As of December 31, 2022, Other Liabilities is comprised only of Level III Corporate Treasury Commitments. Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. As of December 31, 2023 and 2022, Other Investments includes Level III Freestanding Derivatives. Unobservable inputs were weighted based on the fair value of the investments included in the range. The Issuer has issued long-term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by Blackstone, the Guarantors and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid inte