Blackstone Private Equity Fund Sees Net Assets Surge 54% Amid Strong Gains

TL;DR

**Blackstone's private equity fund is crushing it, with unrealized gains driving a massive net asset jump – buy the dip if you can get in!**

AI Summary

Blackstone Private Equity Strategies Fund (TE) L.P. reported a net increase in net assets resulting from operations of $177.346 million for the six months ended June 30, 2025, a significant rise from $28.873 million in the same period of 2024. This was primarily driven by a net change in unrealized gain on investment in BXPE U.S. of $183.936 million in 2025, up from $30.506 million in 2024. The fund's total net assets grew to $2.054 billion as of June 30, 2025, from $1.331 billion at December 31, 2024. Servicing fees increased to $24.961 million for the six months ended June 30, 2025, compared to $37.120 million for the six months ended June 30, 2024, indicating a decrease in the current period. Proceeds from units issued were robust at $575.137 million for the first half of 2025, slightly lower than $840.585 million in the first half of 2024. The fund's investment in BXPE U.S. at fair value increased to $2.133 billion as of June 30, 2025, from $1.385 billion at December 31, 2024, representing 103.9% of net assets. Professional fees also saw an increase, reaching $531 thousand for the six months ended June 30, 2025, up from $173 thousand in the prior year period.

Why It Matters

This filing reveals robust growth for Blackstone Private Equity Strategies Fund (TE) L.P., with net assets increasing by over 54% in six months. For investors, the substantial unrealized gains on its investment in BXPE U.S. signal strong underlying portfolio performance, potentially indicating a healthy return environment for private equity. The continued high volume of unit issuance, despite a slight dip from the previous year, demonstrates sustained investor confidence and demand for Blackstone's private equity offerings, which could put competitive pressure on other private equity funds. This growth also reflects positively on Blackstone's ability to attract and deploy capital effectively in the current market.

Risk Assessment

Risk Level: medium — The fund's primary asset, 'Investment in BXPE U.S. at Fair Value,' constitutes 103.9% of net assets as of June 30, 2025, indicating high concentration risk. While this investment has generated significant unrealized gains of $183.936 million, its valuation is subject to market fluctuations and illiquidity inherent in private equity, as detailed in the 'Risk Factors' section of the Annual Report on Form 10-K.

Analyst Insight

Investors should closely monitor the underlying performance of BXPE U.S. and the broader private equity market for any signs of valuation pressure. Given the strong performance and continued capital inflows, consider this fund for long-term private equity exposure, but be aware of the illiquidity and concentration risk.

Financial Highlights

debt To Equity

N/A

revenue

$177.346M

operating Margin

N/A

total Assets

$2.137B

total Debt

$82.500M

net Income

$177.346M

eps

N/A

gross Margin

N/A

cash Position

$1.016M

revenue Growth

+513.3%

Revenue Breakdown

Key Numbers

• $177.346M — Net Increase in Net Assets from Operations (For six months ended June 30, 2025, up from $28.873M in 2024.)
• $183.936M — Net Unrealized Gain on Investment in BXPE U.S. (For six months ended June 30, 2025, a significant driver of asset growth.)
• $2.054B — Total Net Assets (As of June 30, 2025, a 54.3% increase from $1.331B at December 31, 2024.)
• $2.133B — Investment in BXPE U.S. at Fair Value (As of June 30, 2025, representing 103.9% of net assets.)
• $575.137M — Proceeds from Units Issued (For six months ended June 30, 2025, indicating continued investor interest.)
• $24.961M — Servicing Fees (For six months ended June 30, 2025, a decrease from $37.120M in the prior year period.)
• $531K — Professional Fees (For six months ended June 30, 2025, up from $173K in the prior year period.)
• 91,179,433 — Class S Units Outstanding (As of July 31, 2025, for Blackstone Private Equity Strategies Fund L.P.)
• 145,136,793 — Class I Units Outstanding (As of July 31, 2025, for Blackstone Private Equity Strategies Fund L.P.)
• 103.9% — Investment in BXPE U.S. as % of Net Assets (As of June 30, 2025, highlighting concentration.)

Key Players & Entities

• Blackstone Private Equity Strategies Fund L.P. (company) — Investee Fund
• Blackstone Private Equity Strategies Fund (TE) L.P. (company) — Registrant
• Blackstone Inc. (company) — Parent company/Sponsor
• SEC (regulator) — Securities and Exchange Commission
• $177.346 million (dollar_amount) — Net increase in net assets resulting from operations for six months ended June 30, 2025
• $28.873 million (dollar_amount) — Net increase in net assets resulting from operations for six months ended June 30, 2024
• $183.936 million (dollar_amount) — Net change in unrealized gain on investment in BXPE U.S. for six months ended June 30, 2025
• $2.054 billion (dollar_amount) — Total Net Assets as of June 30, 2025
• $1.331 billion (dollar_amount) — Total Net Assets as of December 31, 2024
• $575.137 million (dollar_amount) — Proceeds from Units Issued for six months ended June 30, 2025

FAQ

Risk Factors

• Concentration Risk in BXPE U.S. [high — market]: The fund's investment in BXPE U.S. represents 103.9% of its total net assets as of June 30, 2025. This high concentration exposes the fund to significant risk if the value of BXPE U.S. declines.
• Fair Value Fluctuations [medium — financial]: The net increase in net assets is heavily reliant on the net change in unrealized gains on investments, specifically BXPE U.S. For the six months ended June 30, 2025, this amounted to $183.936 million, a substantial increase from $30.506 million in the prior year. This highlights the fund's sensitivity to market valuations.
• Increasing Professional Fees [low — operational]: Professional fees have increased to $531 thousand for the six months ended June 30, 2025, from $173 thousand in the same period of 2024. While still a relatively small portion of overall assets, this upward trend warrants monitoring.

Industry Context

The private equity sector continues to see strong performance driven by unrealized gains on existing investments, as demonstrated by Blackstone Private Equity Strategies Fund. Investor demand remains robust, evidenced by significant proceeds from unit issuances. However, the sector is also characterized by increasing operational costs, such as professional fees, and a high degree of investment concentration.

Regulatory Implications

As a registered investment company, the fund is subject to regulations governing disclosures, asset management, and investor protection. The concentration in BXPE U.S. may attract scrutiny regarding diversification and risk management practices.

What Investors Should Do

1. Monitor the fair value of BXPE U.S. closely, given its significant weighting in the portfolio.
2. Evaluate the sustainability of unrealized gains as a primary driver of performance.
3. Assess the trend in professional fees and other operating expenses for potential impact on future returns.
4. Consider the implications of the fund's high concentration risk on overall portfolio diversification.

Key Dates

• 2025-06-30: End of Reporting Period — Reported net increase in net assets of $177.346 million and total net assets of $2.054 billion.
• 2025-06-30: Investment in BXPE U.S. at Fair Value — Reached $2.133 billion, representing 103.9% of net assets, indicating significant concentration.
• 2024-12-31: Previous Year End — Total net assets were $1.331 billion, with investment in BXPE U.S. at $1.385 billion.

Glossary

BXPE U.S.

Likely refers to a specific U.S.-based private equity investment vehicle managed by Blackstone. (The primary investment of the fund, driving its performance through unrealized gains.)

Net Change in Unrealized Gain (Loss) on Investment

The increase or decrease in the fair value of an investment that has not yet been sold. This is a non-cash item. (This was the primary driver of the fund's net increase in net assets for the period.)

Servicing Fees

Fees paid for the administration and management of the fund's investments. (These fees decreased in the current period, contributing to higher net income.)

Units Issued

Represents the capital raised by the fund through the issuance of partnership units to investors. (Proceeds from units issued indicate ongoing investor demand and capital inflows.)

Year-Over-Year Comparison

The six months ended June 30, 2025, show a dramatic increase in the net increase in net assets from operations, rising to $177.346 million from $28.873 million in the prior year. This surge is primarily attributed to a substantial rise in the net change in unrealized gain on investment in BXPE U.S. Total net assets have also grown significantly, reaching $2.054 billion from $1.331 billion at the end of 2024. While proceeds from units issued were lower than the prior year, they remain robust. Servicing fees decreased, positively impacting net income, while professional fees saw an increase.

Filing Documents

• d23038d10q.htm (10-Q) — 4414KB
• d23038dex101.htm (EX-10.1) — 977KB
• d23038dex311.htm (EX-31.1) — 12KB
• d23038dex312.htm (EX-31.2) — 12KB
• d23038dex313.htm (EX-31.3) — 11KB
• d23038dex314.htm (EX-31.4) — 11KB
• d23038dex321.htm (EX-32.1) — 6KB
• d23038dex322.htm (EX-32.2) — 5KB
• d23038dex323.htm (EX-32.3) — 6KB
• d23038dex324.htm (EX-32.4) — 6KB
• d23038d10q1.pdf (10-Q) — 1079KB
• g23038g0801102804601.jpg (GRAPHIC) — 2KB
• g23038g85g01.jpg (GRAPHIC) — 22KB
• g23038g85g02.jpg (GRAPHIC) — 20KB
• g23038g85g03.jpg (GRAPHIC) — 37KB
• g23038g85g04.jpg (GRAPHIC) — 31KB
• 0001193125-25-179804.txt ( ) — 18029KB
• bxpe-20250630.xsd (EX-101.SCH) — 1343KB
• d23038d10q_htm.xml (XML) — 3502KB

Financial Statements

Financial Statements 6 Unaudited Condensed Consolidated Financial Statements of Blackstone Private Equity Strategies Fund (TE) L.P.: 6 Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2025 and December 31, 2024 7 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 8 Condensed Consolidated Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 11 Condensed Consolidated Schedule of Investments as of June 30, 2025 and December 31, 2024 12 Notes to Condensed Consolidated Financial Statements 13 Unaudited Condensed Financial Statements of Blackstone Private Equity Strategies Fund L.P.: 23 Condensed Statements of Assets and Liabilities as of June 30, 2025 and December 31, 2024 24 Condensed Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 25 Condensed Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2025 and 2024 26 Condensed Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 28 Condensed Schedule of Investments as of June 30, 2025 and December 31, 2024 29 Notes to Condensed Financial Statements 30 Unaudited Condensed Consolidated Financial Statements of BXPE US Aggregator (CYM) L.P.: 41 Condensed Consolidated Statements of Assets and Liabilities as of June 30, 2025 and December 31, 2024 42 Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 43 Condensed Consolidated Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2025 and 2024 44 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 46 Condensed Consolidated Schedule of Investments as of June 30, 2025 and December 31, 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 80 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 94 Item 4.

Controls and Procedures

Controls and Procedures 95 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 96 Item 1A.

Risk Factors

Risk Factors 96 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 96 Item 3. Defaults Upon Senior Securities 97 Item 4. Mine Safety Disclosures 97 Item 5. Other Information 97 Item 6. Exhibits 97

Signatures

Signatures 99 2 Table of Contents Explanatory Note This report combines the Quarterly Reports on Form 10-Q for the three and six months ended June 30, 2025, of Blackstone Private Equity Strategies Fund L.P. ("BXPE U.S.") and Blackstone Private Equity Strategies Fund (TE) L.P. (together with its consolidated subsidiary, the "Feeder") (collectively, the "Registrants"). The Feeder invests all or substantially all of its assets through its investment in BXPE U.S. and BXPE U.S. invests all or substantially all of its assets through its investment in BXPE US Aggregator (CYM) L.P. (the "Aggregator"). The Feeder, BXPE U.S. and the Aggregator all have the same investment objectives. We believe combining the Quarterly Reports on Form 10-Q of the Registrants and the Aggregator into this single report: facilitates clarity for investors in the Feeder and BXPE U.S. regarding the underlying investments of the Registrants, enables investors to gain a clearer understanding of the Registrants by allowing them to evaluate the business as a whole, eliminates duplicative disclosures and provides a more streamlined and readable presentation, and creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

Forward-Looking Statements

Forward-Looking Statements This report may contain forward-looking statements, which involve certain known and unknown risks and uncertainties. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies, portfolio management and the performance of our investments. These forward-looking statements are generally identified by their use of such terms and phrases as "intend," "goal," "estimate," "expect," "project," "projections," "plans," "seeks," "anticipates," "will," "should," "could," "may," "designed to," "foreseeable future," "believe," "scheduled" and similar expressions. Our actual results or outcomes may differ materially from those anticipated. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Potential investors should not rely on these statements as if they were fact. We assume no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. References herein to "expertise" or any party being an "expert," based solely on the belief of Blackstone, are intended only to indicate proficiency as compared to an average person and in no way limit any exculpation provisions or alter any standard of care applicable to Blackstone. Additionally, any awards, honors, or other references or rankings referred to herein with respect to Blackstone or any investment professional are provided solely for informational purposes and are not intended to be, nor should they be construed or relied upon as, any indication of future performance or other future activity. Any such awards, honors, or other references or rankings may have been based on subjective criteria and may have been based on a limited universe of participants, and there are other awards, honors, or other references or rankings given to others and not received

Financial Information

Part I. Financial Information Item1.

Financial Statements

Financial Statements Blackstone Private Equity Strategies Fund (TE) L.P. 6 Table of Contents Blackstone Private Equity Strategies Fund (TE) L.P. Condensed Consolidated Statements of Assets and Liabilities (Unaudited) (Dollars in Thousands, Except Unit Data) June 30, December 31, 2025 2024 Assets Investment in BXPE U.S. at Fair Value (Cost $ 1,828,481 as of June 30, 2025; $ 1,263,768 as of December 31, 2024) $ 2,133,807 $ 1,385,158 Cash and Cash Equivalents 1,016 1,130 Repurchases Receivable 2,272 172 Total Assets $ 2,137,095 $ 1,386,460 Liabilities and Net Assets Accounts Payable and Accrued Expenses $ 530 $ 258 Servicing Fees Payable 72,095 50,776 Due to Affiliates 685 1,436 Repurchases Payable 2,148 162 Deferred Tax Liabilities 6,892 2,278 Taxes Payable 150 150 Total Liabilities 82,500 55,060 Commitments and Contingencies Net Assets Limited Partnership Unit — Class S Units, unlimited Units authorized ( 42,824,952 Units issued and outstanding as of June 30, 2025 and 31,356,066 Units issued and outstanding as of December 31, 2024) 1,244,668 827,177 Limited Partnership Unit — Class D Units, unlimited Units authorized ( 109,056 Units issued and outstanding as of June 30, 2025 and 24,000 Units issued and outstanding as of December 31, 2024) 2,982 595 Limited Partnership Unit — Class I Units, unlimited Units authorized ( 25,943,281 Units issued and outstanding as of June 30, 2025 and 17,847,128 Units issued and outstanding as of December 31, 2024) 806,945 503,628 Total Net Assets 2,054,595 1,331,400 Total Liabilities and Net Assets $ 2,137,095 $ 1,386,460 See notes to condensed consolidated financial statements. 7 Table of Contents Blackstone Private Equity Strategies Fund (TE) L.P. Condensed Consolidated Statements of Operations (Unaudited) (Dollars in Thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Expen

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