Blackstone Inc. 10-Q: Level III Derivatives and Valuation Changes

TL;DR

Blackstone's Q1 2025 10-Q shows changes in how they value Level III derivatives due to input observability.

AI Summary

Blackstone Inc. filed its 10-Q for the period ending March 31, 2025. The filing details financial information, including 'Other Investments' which encompasses Level III Freestanding Derivatives as of March 31, 2025. Transfers into and out of Level III assets and liabilities are noted as being due to changes in the observability of valuation inputs.

Why It Matters

This filing provides insight into how Blackstone values complex financial instruments, which can impact investor confidence and the company's reported asset values.

Risk Assessment

Risk Level: medium — The valuation of Level III assets, which are not readily determinable, carries inherent risk and can be subject to significant fluctuations.

Key Numbers

• N/A — Total Revenue (Specific revenue figures were not present in the provided text snippet.)
• N/A — Net Income (Specific net income figures were not present in the provided text snippet.)
• N/A — Assets Under Management (Specific AUM figures were not present in the provided text snippet.)

Key Players & Entities

• Blackstone Inc. (company) — Filer of the 10-Q
• March 31, 2025 (date) — End of reporting period
• December 31, 2024 (date) — Prior period comparison date
• Level III Freestanding Derivatives (financial_instrument) — Component of Other Investments

FAQ

From the Filing

0001193125-25-111595.txt : 20250502 0001193125-25-111595.hdr.sgml : 20250502 20250502160142 ACCESSION NUMBER: 0001193125-25-111595 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 115 CONFORMED PERIOD OF REPORT: 20250331 FILED AS OF DATE: 20250502 DATE AS OF CHANGE: 20250502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Blackstone Inc. CENTRAL INDEX KEY: 0001393818 STANDARD INDUSTRIAL CLASSIFICATION: INVESTMENT ADVICE [6282] ORGANIZATION NAME: 02 Finance EIN: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-33551 FILM NUMBER: 25908303 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 10-Q 1 d894615d10q.htm 10-Q 10-Q http://fasb.org/us-gaap/2024#RelatedPartyMember http://fasb.org/us-gaap/2024#RelatedPartyMember http://fasb.org/us-gaap/2024#RelatedPartyMember http://fasb.org/us-gaap/2024#RelatedPartyMember false Q1 0001393818 --12-31 http://fasb.org/us-gaap/2024#OtherAssets http://fasb.org/us-gaap/2024#OtherAssets As of March 31, 2025 and December 31, 2024, Other Investments includes Level III Freestanding Derivatives. A summary of the investments where the fair value is not readily determinable and NAV is used as a practical expedient as of March 31, 2025 is presented by strategy type below: Represents freestanding derivatives, corporate treasury investments and Other Investments. 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. For Freestanding Derivatives included within Other Investments, Settlements includes all ongoing contractual cash payments made or received over the life of the instrument. Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. CLO Notes Payable have maturity dates ranging from June 2025 to January 2037. A portion of the borrowing outstanding is comprised of subordinated notes which do not have contractual interest rates but instead pay distributions from the excess cash flows of the CLO vehicles. As of March 31, 2025, the CLO Notes Payable were deconsolidated. The Secured Borrowings Due 10/27/2033 and 1/29/2035 were repaid during the three months ended March 31, 2025. Represents the Revolving Credit Facility of Blackstone, through Blackstone Holdings Finance Co. L.L.C. Interest on the borrowings is based on an adjusted Secured Overnight Finance Rate (“SOFR”) or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee of 0.06%. The margin above adjusted SOFR used to calculate interest on borrowings was 0.75% plus an additional credit spread adjustment of 0.10% to account for the difference between London Interbank Offered Rate (“LIBOR”) and SOFR. The margin is subject to change based on Blackstone’s credit rating. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earnin