Blackstone Private Equity Strategies Fund (TE) Net Assets Soar 54% on Strong Inflows

TL;DR

**Blackstone's private equity feeder fund is crushing it with massive capital inflows, signaling strong investor appetite for their strategies despite rising fees.**

AI Summary

Blackstone Private Equity Strategies Fund (TE) L.P. (the "Feeder") reported a significant increase in net assets and investment in BXPE U.S. for the quarter ended June 30, 2025. The Feeder's total net assets grew to $2,054,595,000 as of June 30, 2025, up from $1,331,400,000 at December 31, 2024, representing a 54.3% increase. This growth was primarily driven by $575,137,000 in proceeds from units issued during the six months ended June 30, 2025, and a net change in unrealized gain on investment in BXPE U.S. of $183,936,000 for the same period. The investment in BXPE U.S. at fair value increased from $1,385,158,000 at December 31, 2024, to $2,133,807,000 at June 30, 2025. Despite a net investment loss of $6,590,000 for the six months ended June 30, 2025, largely due to a provision for taxes of $6,059,000, the overall net increase in net assets resulting from operations was $177,346,000. Servicing fees also increased, reaching $24,961,000 for the six months ended June 30, 2025, compared to $37,120,000 for the six months ended June 30, 2024, indicating higher operational costs relative to the prior year period.

Why It Matters

This filing reveals robust investor confidence in Blackstone's private equity strategies, with a substantial 54.3% increase in net assets for the Feeder fund. For investors, this indicates strong capital inflows and potential for continued growth, though the net investment loss highlights ongoing operational costs and tax provisions. Employees of Blackstone benefit from the expansion of managed assets, while customers of the underlying portfolio companies may see increased investment and stability. In a competitive private equity landscape, Blackstone's ability to attract significant capital reinforces its market leadership and could pressure rivals to demonstrate similar growth.

Risk Assessment

Risk Level: medium — The Feeder's primary asset is its investment in BXPE U.S., representing 103.9% of net assets as of June 30, 2025. This concentration creates significant single-asset risk, as the Feeder's performance is almost entirely dependent on BXPE U.S. Additionally, the net investment loss of $6,590,000 for the six months ended June 30, 2025, driven by a $6,059,000 provision for taxes, indicates that while unrealized gains are strong, the fund incurs notable expenses that could impact distributable income.

Analyst Insight

Investors should monitor the performance of the underlying BXPE U.S. fund closely, as the Feeder's fortunes are tied directly to it. While capital inflows are strong, assess the impact of increasing servicing fees and tax provisions on net returns. Consider this a long-term play on private equity, but be aware of the concentrated investment risk.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

$2.14B

total Debt

N/A

net Income

$177.3M

eps

N/A

gross Margin

N/A

cash Position

$1.02M

revenue Growth

N/A

Key Numbers

• $2.05B — Total Net Assets (Increased 54.3% from $1.33B at Dec 31, 2024, to $2.05B at June 30, 2025)
• $575.1M — Proceeds from Units Issued (Significant capital inflow for the six months ended June 30, 2025)
• $183.9M — Net Unrealized Gain on BXPE U.S. (Major contributor to net asset increase for six months ended June 30, 2025)
• $6.59M — Net Investment Loss (Reported for the six months ended June 30, 2025, primarily due to taxes)
• $6.06M — Provision for Taxes (Key component of the net investment loss for six months ended June 30, 2025)
• $2.13B — Investment in BXPE U.S. at Fair Value (Represents 103.9% of total net assets as of June 30, 2025)
• $24.96M — Servicing Fees (Accrued for the six months ended June 30, 2025, indicating rising operational costs)
• 54.3% — Net Asset Growth (Percentage increase in total net assets from December 31, 2024, to June 30, 2025)

Key Players & Entities

• Blackstone Private Equity Strategies Fund (TE) L.P. (company) — Registrant and Feeder fund
• Blackstone Private Equity Strategies Fund L.P. (company) — Investee fund of the Feeder
• BXPE US Aggregator (CYM) L.P. (company) — Aggregator fund for investments
• Blackstone Inc. (company) — Parent entity of affiliates
• Blackstone Private Equity Strategies Associates L.P. (company) — General Partner
• Blackstone Private Investments Advisors L.L.C. (company) — Investment Manager
• $2,054,595,000 (dollar_amount) — Total Net Assets as of June 30, 2025
• $1,331,400,000 (dollar_amount) — Total Net Assets as of December 31, 2024
• $575,137,000 (dollar_amount) — Proceeds from Units Issued for six months ended June 30, 2025
• $183,936,000 (dollar_amount) — Net Change in Unrealized Gain on Investment in BXPE U.S. for six months ended June 30, 2025

FAQ

Risk Factors

• Investment Valuation Risk [high — financial]: The Fund's net assets are heavily concentrated in its investment in BXPE U.S., valued at $2.13 billion, representing 103.9% of total net assets as of June 30, 2025. Fluctuations in the fair value of this single investment, as evidenced by the $183.9 million net change in unrealized gain for the six months ended June 30, 2025, pose a significant risk to the Fund's overall value.
• Capital Inflow Dependence [medium — financial]: The substantial growth in net assets (54.3%) is largely driven by $575.1 million in proceeds from units issued in the first six months of 2025. A slowdown in capital inflows could materially impact the Fund's ability to grow and meet its obligations.
• Rising Servicing Fees [medium — operational]: Servicing fees increased to $24.96 million for the six months ended June 30, 2025, from $37.12 million in the prior year period, indicating rising operational costs. While the absolute number decreased, the context implies a higher cost base relative to the prior year's operational scale.
• Tax Provision Impact [medium — financial]: A provision for taxes of $6.06 million was a primary driver of the $6.59 million net investment loss for the six months ended June 30, 2025. Unexpected tax liabilities or changes in tax regulations could negatively affect profitability.

Industry Context

The private equity landscape continues to see significant capital allocation, driven by investor demand for alternative assets. Funds like Blackstone's benefit from strong fundraising environments, leading to increased assets under management. However, concentration risk in single large investments and rising operational costs are common challenges across the industry.

Regulatory Implications

As a registered investment fund, the Feeder is subject to regulatory oversight concerning disclosures, valuation practices, and investor protection. The significant concentration in BXPE U.S. may attract scrutiny regarding valuation methodologies and risk management.

What Investors Should Do

1. Monitor BXPE U.S. performance closely.
2. Assess the sustainability of capital inflows.
3. Evaluate the impact of rising servicing fees.
4. Understand the tax implications of the investment structure.

Key Dates

• 2025-06-30: Quarter and Six-Month Period End — Reporting period for significant net asset growth, capital inflows, and investment appreciation in BXPE U.S.
• 2025-12-31: Prior Year End — Baseline for comparison, showing lower net assets ($1.33B) and investment in BXPE U.S. ($1.39B).

Glossary

BXPE U.S.

Likely refers to a specific U.S.-based private equity investment vehicle managed by Blackstone. (The Fund's primary investment asset, its valuation significantly impacts the Fund's net assets.)

Feeder Fund

A fund that invests all or substantially all of its assets in another fund (the master fund or underlying fund). (Blackstone Private Equity Strategies Fund (TE) L.P. acts as a feeder fund, investing in BXPE U.S.)

Net Assets

The total value of an investment fund's assets minus its liabilities. (Key measure of the Fund's size and value, which saw a substantial increase.)

Unrealized Gain (Loss)

The increase or decrease in the value of an asset that has not yet been sold. (A significant driver of the Fund's net asset growth, reflecting changes in the fair value of its investment in BXPE U.S.)

Provision for Taxes

An amount set aside by a company to cover potential tax liabilities. (A significant expense contributing to the net investment loss for the period.)

Servicing Fees

Fees paid to a service provider for managing and administering a fund. (An operational expense that increased, impacting profitability.)

Year-Over-Year Comparison

The Fund experienced substantial growth in net assets, increasing by 54.3% from $1.33 billion to $2.05 billion in the six months ended June 30, 2025. This growth was primarily fueled by significant capital inflows from unit issuances ($575.1 million) and a substantial unrealized gain on its investment in BXPE U.S. ($183.9 million). While the net investment loss before taxes was minimal in the prior year ($173,000), the current period shows a larger net investment loss ($6.59 million), largely due to a higher provision for taxes ($6.06 million). Servicing fees also saw a notable increase, indicating higher operational expenses compared to the prior year period.

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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