Blackstone Private Equity Fund Assets Soar 87% on Strong Inflows, Unrealized Gains

TL;DR

**Blackstone's private equity fund is crushing it, with massive inflows and unrealized gains signaling strong performance and investor appetite.**

AI Summary

Blackstone Private Equity Strategies Fund (TE) L.P. reported a significant increase in total net assets, reaching $2.49 billion as of September 30, 2025, up from $1.33 billion at December 31, 2024, representing an 87.2% increase. This growth was primarily driven by $971.9 million in proceeds from units issued during the nine months ended September 30, 2025. The fund experienced a net investment loss of $7.92 million for the nine months ended September 30, 2025, compared to a $3.29 million loss in the prior year period. However, this was offset by a substantial net change in unrealized gain on investment in BXPE U.S. of $240.14 million for the nine months ended September 30, 2025, a significant increase from $69.97 million in the same period of 2024. Servicing fees also increased to $36.32 million for the nine months ended September 30, 2025, from $45.21 million in the prior year, indicating higher operational costs relative to the previous period's full nine months. The fund's investment in BXPE U.S. at fair value grew to $2.58 billion as of September 30, 2025, from $1.39 billion at December 31, 2024.

Why It Matters

This filing reveals robust investor confidence in Blackstone's private equity strategies, with nearly $1 billion in new unit proceeds driving significant asset growth. The substantial unrealized gains on its investment in BXPE U.S. suggest strong underlying portfolio performance, which is crucial for investor returns in a competitive private equity landscape. For employees, this growth signals stability and potential expansion. Customers of Blackstone's portfolio companies benefit from continued investment, while the broader market sees a bellwether for private market health, especially given Blackstone's influence. Competitors will be watching to see if this growth trend continues, indicating a potential shift in capital allocation towards private equity.

Risk Assessment

Risk Level: medium — The fund's primary asset is its investment in BXPE U.S., which constitutes 103.5% of its net assets, indicating high concentration risk. While there's a significant net change in unrealized gain of $240.14 million, this is an unrealized gain, meaning it's subject to market fluctuations and may not materialize as realized profit, posing a risk to the reported net asset increase.

Analyst Insight

Investors should closely monitor the realization of the substantial unrealized gains in BXPE U.S. to confirm actual profitability. Given the high concentration in a single investment, diversification within a broader portfolio is advisable for investors in this fund.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

$2.58B

total Debt

N/A

net Income

$232.22M

eps

N/A

gross Margin

N/A

cash Position

$1.13M

revenue Growth

N/A

Key Numbers

• $2.49B — Total Net Assets (Increased 87.2% from $1.33B at Dec 31, 2024 to $2.49B at Sep 30, 2025.)
• $971.9M — Proceeds from Units Issued (Significant capital inflow for the nine months ended September 30, 2025.)
• $240.14M — Net Unrealized Gain on BXPE U.S. (Substantial increase from $69.97M in the prior year period, driving asset growth.)
• $7.92M — Net Investment Loss (Increased from $3.29M in the prior year period for the nine months ended September 30, 2025.)
• $36.32M — Servicing Fees (Increased from $8.09M in the prior year quarter, indicating higher operational costs.)
• 103.5% — Investment in BXPE U.S. as % of Net Assets (High concentration of assets in a single investment.)
• 103,587,629 — Class S Units Outstanding (As of October 31, 2025, indicating significant investor participation.)
• 171,152,168 — Class I Units Outstanding (As of October 31, 2025, representing a large portion of investor units.)

Key Players & Entities

• Blackstone Private Equity Strategies Fund L.P. (company) — primary investment vehicle
• Blackstone Private Equity Strategies Fund (TE) L.P. (company) — registrant and feeder fund
• BXPE US Aggregator (CYM) L.P. (company) — aggregator of investments
• Blackstone Inc. (company) — parent company and sponsor
• Blackstone Private Equity Strategies Associates L.P. (company) — general partner
• Blackstone Private Investments Advisors L.L.C. (company) — investment manager
• SEC (regulator) — Securities and Exchange Commission
• $2.49 billion (dollar_amount) — total net assets as of September 30, 2025
• $971.9 million (dollar_amount) — proceeds from units issued for nine months ended September 30, 2025
• $240.14 million (dollar_amount) — net change in unrealized gain on investment in BXPE U.S. for nine months ended September 30, 2025

FAQ

Risk Factors

• Concentration Risk in BXPE U.S. Investment [high — financial]: The fund's investment in BXPE U.S. represents a significant portion of its total assets, valued at $2.58 billion as of September 30, 2025, which is 103.5% of the total net assets. This high concentration exposes the fund to substantial risk if the performance of BXPE U.S. deteriorates.
• Increasing Net Investment Loss [medium — financial]: The net investment loss for the nine months ended September 30, 2025, was $7.92 million, an increase from $3.29 million in the prior year period. This indicates that the fund's core investment activities are generating losses, which are being offset by unrealized gains.
• Rising Servicing Fees [medium — operational]: Servicing fees increased to $36.32 million for the nine months ended September 30, 2025, from $8.09 million in the prior year period. This significant rise suggests increasing operational costs or a change in fee structure, impacting profitability.
• Dependence on Unrealized Gains [high — market]: The substantial net change in unrealized gain on investment in BXPE U.S. of $240.14 million for the nine months ended September 30, 2025, was the primary driver of asset growth. Over-reliance on unrealized gains can be volatile and may not translate into realized returns.

Industry Context

The private equity sector continues to see significant capital inflows, as evidenced by Blackstone Private Equity Strategies Fund's substantial unit issuances. However, the industry faces challenges related to increasing operational costs and the valuation of illiquid assets. Performance is heavily influenced by the ability to generate strong unrealized gains, which are subject to market volatility.

Regulatory Implications

As a registered investment fund, Blackstone Private Equity Strategies Fund L.P. is subject to various regulatory requirements concerning disclosures, investor protection, and capital adequacy. Increased scrutiny on valuation methodologies and fee structures could impact operational compliance and reporting.

What Investors Should Do

1. Monitor BXPE U.S. Performance
2. Analyze Servicing Fee Trends
3. Evaluate Realized vs. Unrealized Gains
4. Assess Capital Inflow Sustainability

Key Dates

• 2025-09-30: Reporting Period End — Marks the end of the nine-month period for which financial results are reported, showing significant growth in net assets and investment value.
• 2025-12-31: Prior Year End — Provides a baseline for comparison, highlighting the substantial increase in total net assets and investment in BXPE U.S. from the previous year.

Glossary

BXPE U.S.

Likely refers to a specific U.S.-based private equity investment vehicle or fund managed by Blackstone. (The fund's primary investment, accounting for a significant portion of its assets and driving its performance through unrealized gains.)

Net Investment Loss

The excess of investment expenses over investment income, excluding changes in unrealized gains or losses. (Indicates the profitability of the fund's core investment operations before considering market value fluctuations of its assets.)

Net Change in Unrealized Gain (Loss)

The increase or decrease in the fair value of investments that have not yet been sold. (A key driver of the fund's overall net asset growth, reflecting market appreciation of its holdings, particularly BXPE U.S.)

Servicing Fees

Fees paid to entities that administer and manage the fund's operations and investor relations. (Represents a significant operational expense for the fund, which has notably increased in the current period.)

Class S Units

A specific class of limited partnership units in the fund, likely with different fee structures or investor rights. (Represents a substantial portion of the fund's outstanding units and net assets.)

Class I Units

Another class of limited partnership units, often associated with institutional or higher-net-worth investors. (Represents a significant portion of the fund's outstanding units and net assets, with a substantial increase in issued units.)

Year-Over-Year Comparison

Compared to the prior year period, Blackstone Private Equity Strategies Fund L.P. has experienced a dramatic increase in total net assets, growing by 87.2% to $2.49 billion, largely fueled by $971.9 million in proceeds from new units issued. While the net investment loss widened from $3.29 million to $7.92 million, this was overshadowed by a significant surge in net unrealized gains on its BXPE U.S. investment, which more than tripled from $69.97 million to $240.14 million. Servicing fees also saw a substantial increase, indicating rising operational expenses.

Filing Documents

• d12786d10q.htm (10-Q) — 4581KB
• d12786dex311.htm (EX-31.1) — 12KB
• d12786dex312.htm (EX-31.2) — 12KB
• d12786dex313.htm (EX-31.3) — 11KB
• d12786dex314.htm (EX-31.4) — 11KB
• d12786dex321.htm (EX-32.1) — 6KB
• d12786dex322.htm (EX-32.2) — 6KB
• d12786dex323.htm (EX-32.3) — 6KB
• d12786dex324.htm (EX-32.4) — 6KB
• d12786d10q1.pdf (10-Q) — 590KB
• g12786g01a01.jpg (GRAPHIC) — 36KB
• g12786g01a02.jpg (GRAPHIC) — 28KB
• g12786g01a03.jpg (GRAPHIC) — 47KB
• g12786g01a04.jpg (GRAPHIC) — 42KB
• g12786g96w26.jpg (GRAPHIC) — 12KB
• 0001193125-25-277478.txt ( ) — 17409KB
• bxpe-20250930.xsd (EX-101.SCH) — 1359KB
• d12786d10q_htm.xml (XML) — 3932KB

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 September 30, 2025 and December 31, 2024 7 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 8 Condensed Consolidated Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 11 Condensed Consolidated Schedules of Investments as of September 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 September 30, 2025 and December 31, 2024 24 Condensed Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 25 Condensed Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2025 and 2024 26 Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 28 Condensed Schedules of Investments as of September 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 September 30, 2025 and December 31, 2024 42 Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 43 Condensed Consolidated Statements of Changes in Net Assets for the Three and Nine Months Ended September 30, 2025 and 2024 44 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 46 Cond

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 82 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 97 Item 4.

Controls and Procedures

Controls and Procedures 98 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 99 Item 1A.

Risk Factors

Risk Factors 99 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 99 Item 3. Defaults Upon Senior Securities 100 Item 4. Mine Safety Disclosures 100 Item 5. Other Information 100 Item 6. Exhibits 101

Signatures

Signatures 103 2 Table of Contents Explanatory Note This report combines the Quarterly Reports on Form 10-Q for the three and nine months ended September 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. (together with its consolidated subsidiaries, 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) September 30, December 31, 2025 2024 Assets Investment in BXPE U.S. at Fair Value (Cost $ 2,219,848 as of September 30, 2025; $ 1,263,768 as of December 31, 2024) $ 2,581,380 $ 1,385,158 Cash and Cash Equivalents 1,128 1,130 Redemption Receivable 1,761 172 Total Assets $ 2,584,269 $ 1,386,460 Liabilities and Net Assets Accounts Payable and Accrued Expenses $ 716 $ 258 Servicing Fees Payable 80,660 50,776 Due to Affiliates 199 1,436 Redemptions Payable 1,636 162 Deferred Tax Liabilities 7,737 2,278 Taxes Payable 150 150 Total Liabilities 91,098 55,060 Commitments and Contingencies Net Assets Limited Partnership Unit — Class S Units, unlimited Units authorized ( 48,502,843 Units issued and outstanding as of September 30, 2025 and 31,356,066 Units issued and outstanding as of December 31, 2024) 1,443,022 827,177 Limited Partnership Unit — Class D Units, unlimited Units authorized ( 196,457 Units issued and outstanding as of September 30, 2025 and 24,000 Units issued and outstanding as of December 31, 2024) 5,501 595 Limited Partnership Unit — Class I Units, unlimited Units authorized ( 32,789,403 Units issued and outstanding as of September 30, 2025 and 17,847,128 Units issued and outstanding as of December 31, 2024) 1,044,648 503,628 Total Net Assets 2,493,171 1,331,400 Total Liabilities and Net Assets $ 2,584,269 $ 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 September 30, Nine Months Ended Septembe

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