Blackstone Private Equity Fund Sees 249% Surge in Net Assets

TL;DR

**Blackstone's private equity feeder fund is crushing it, with net assets up 249% year-over-year, signaling strong underlying portfolio performance and continued investor appetite for private markets.**

AI Summary

Blackstone Private Equity Strategies Fund (TE) L.P. (the "Feeder") reported a net increase in net assets from operations of $54.87 million for the three months ended September 30, 2025, up from $37.80 million in the prior year period, representing a 45.16% increase. For the nine months ended September 30, 2025, the net increase in net assets from operations was $232.22 million, a substantial rise from $66.68 million in the same period of 2024. This growth was primarily driven by a significant net change in unrealized gain on investment in BXPE U.S., which reached $240.14 million for the nine months ended September 30, 2025, compared to $69.97 million in 2024. The Feeder's total net assets grew to $2.49 billion as of September 30, 2025, from $1.33 billion at December 31, 2024, largely due to $971.92 million in proceeds from units issued during the nine-month period. Investment in BXPE U.S. at fair value increased to $2.58 billion as of September 30, 2025, from $1.39 billion at December 31, 2024, with a cost basis of $2.22 billion. Servicing fees also increased, reaching $36.32 million for the nine months ended September 30, 2025, up from $45.21 million in the prior year, indicating higher asset management costs. The fund continues to experience significant unit issuance, with Class S, D, and I units all showing substantial increases in outstanding units.

Why It Matters

This 10-Q reveals robust growth for Blackstone's private equity feeder fund, indicating strong investor confidence and potentially favorable market conditions for private assets. The significant increase in net assets and unrealized gains suggests that underlying investments within BXPE U.S. are performing well, which could attract more capital to Blackstone's private equity offerings. For investors, this signals potential for continued returns, but also highlights the illiquid nature of private equity. Competitively, Blackstone's ability to raise substantial capital and generate gains reinforces its dominant position in the private equity landscape, potentially drawing talent and deal flow away from smaller firms.

Risk Assessment

Risk Level: medium — The fund's primary asset is its investment in BXPE U.S., which represents 103.5% of its net assets as of September 30, 2025. This high concentration in a single investee fund, while diversified at the underlying level, exposes the Feeder to the specific risks and performance of BXPE U.S. Additionally, the significant unrealized gains of $240.14 million for the nine months ended September 30, 2025, are subject to market fluctuations and may not fully materialize upon realization.

Analyst Insight

Investors should closely monitor the performance of the underlying BXPE U.S. investments and Blackstone's broader private equity strategy. Given the strong capital inflows and unrealized gains, consider this a positive signal for Blackstone's private market capabilities, but be aware of the inherent illiquidity and valuation complexities of private equity investments.

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 from $1.33B at Dec 31, 2024, a 87.2% increase.)
• $232.22M — Net Increase in Net Assets from Operations (9 months) (Significantly up from $66.68M in the prior year, a 248.3% increase.)
• $240.14M — Net Change in Unrealized Gain on Investment in BXPE U.S. (9 months) (Increased from $69.97M in the prior year, a 243.2% increase, driving asset growth.)
• $971.92M — Proceeds from Units Issued (9 months) (Indicates strong investor capital inflows into the fund.)
• $2.58B — Investment in BXPE U.S. at Fair Value (Represents 103.5% of total net assets, showing high concentration.)
• 80,360,087 — Units of BXPE U.S. held (The primary holding of the Feeder fund.)
• $36.32M — Servicing Fees (9 months) (Increased from $45.21M in the prior year, indicating higher operational costs.)
• $7.74M — Deferred Tax Liabilities (Increased from $2.28M at Dec 31, 2024, reflecting tax implications of gains.)

Key Players & Entities

• Blackstone Private Equity Strategies Fund (TE) L.P. (company) — Registrant and Feeder fund
• Blackstone Private Equity Strategies Fund L.P. (company) — Registrant and Investee Fund for the Feeder
• BXPE US Aggregator (CYM) L.P. (company) — Aggregator fund through which BXPE U.S. invests
• Blackstone Inc. (company) — Parent company and sponsor
• $2.49 billion (dollar_amount) — Total Net Assets as of September 30, 2025
• $1.33 billion (dollar_amount) — Total Net Assets as of December 31, 2024
• $232.22 million (dollar_amount) — Net Increase in Net Assets from Operations for nine months ended September 30, 2025
• $66.68 million (dollar_amount) — Net Increase in Net Assets from Operations for nine months ended September 30, 2024
• $240.14 million (dollar_amount) — Net Change in Unrealized Gain on Investment in BXPE U.S. for nine months ended September 30, 2025
• $971.92 million (dollar_amount) — Proceeds from Units Issued for nine months ended September 30, 2025

FAQ

Risk Factors

• Investment Concentration Risk [high — market]: The fund's primary asset is its investment in BXPE U.S., valued at $2.58 billion as of September 30, 2025. This represents 103.5% of the fund's total net assets, indicating a significant concentration risk. Any adverse performance or valuation changes in BXPE U.S. would have a substantial impact on the Feeder's overall financial condition.
• Unrealized Gain Volatility [medium — financial]: The net increase in net assets is heavily influenced by the net change in unrealized gain on investment in BXPE U.S. For the nine months ended September 30, 2025, this gain was $240.14 million, a significant increase from $69.97 million in the prior year. This reliance on unrealized gains introduces volatility to the fund's reported performance.
• Increasing Servicing Fees [medium — operational]: Servicing fees increased to $36.32 million for the nine months ended September 30, 2025, up from $45.21 million in the prior year. While the absolute dollar amount decreased, the context implies higher asset management costs associated with the growing fund size and complexity.
• Deferred Tax Liabilities [medium — financial]: Deferred tax liabilities increased to $7.74 million as of September 30, 2025, from $2.28 million at December 31, 2024. This rise reflects the tax implications of the significant unrealized gains recognized by the fund.

Industry Context

The private equity sector continues to see strong investor interest, evidenced by significant capital inflows into funds like Blackstone Private Equity Strategies Fund. However, the industry is characterized by high concentration in specific underlying assets and reliance on unrealized gains for performance reporting. Competition remains intense, with established managers like Blackstone leveraging their scale and expertise.

Regulatory Implications

The fund's reliance on unrealized gains and its concentrated investment in BXPE U.S. may attract scrutiny regarding valuation methodologies and risk disclosures. Changes in tax regulations or accounting standards related to private equity investments could impact reported performance and future tax liabilities.

What Investors Should Do

1. Monitor BXPE U.S. Performance
2. Assess Unrealized Gain Sensitivity
3. Evaluate Servicing Fee Trends
4. Consider Tax Implications

Key Dates

• 2025-09-30: Reporting Period End — The fund reported total net assets of $2.49 billion and a net increase in net assets from operations of $54.87 million for the quarter.
• 2025-09-30: Investment in BXPE U.S. Fair Value — The fund's investment in BXPE U.S. reached a fair value of $2.58 billion, representing a substantial increase and a high concentration within the fund's portfolio.
• 2025-09-30: Units Issued — The fund saw significant capital inflows through unit issuance, raising $971.92 million in proceeds during the nine-month period.
• 2024-12-31: Prior Year End — The fund's total net assets were $1.33 billion, and its investment in BXPE U.S. was valued at $1.39 billion.

Glossary

Feeder Fund

A type of investment fund that pools assets from multiple investors and invests them in a master fund. In this case, Blackstone Private Equity Strategies Fund (TE) L.P. acts as a feeder to BXPE U.S. (Explains the structure of the fund and its relationship with BXPE U.S.)

BXPE U.S.

The underlying investment vehicle or fund in which the Feeder Fund invests. The Feeder's performance is largely tied to the performance of BXPE U.S. (Identifies the primary investment holding and the source of significant unrealized gains.)

Net Change in Unrealized Gain (Loss)

The increase or decrease in the value of an investment that has not yet been sold. This reflects changes in market value and is recognized in the income statement. (Crucial for understanding the primary driver of the fund's reported net increase in net assets.)

Cost Basis

The original value of an asset for tax purposes, usually the purchase price. It is used to calculate capital gains or losses when the asset is sold. (Provides context for the fair value of the investment in BXPE U.S., showing the difference between purchase price and current market value.)

Units Issued and Outstanding

Represents the number of ownership shares in the limited partnership that have been sold to investors and have not been redeemed. (Indicates investor demand and the growth of the fund's capital base across different classes (S, D, I).)

Deferred Tax Liabilities

Taxes that are owed but have not yet been paid. These often arise from differences between accounting income and taxable income, particularly with unrealized gains. (Highlights the future tax obligations related to the fund's investment gains.)

Year-Over-Year Comparison

Compared to the prior year period, Blackstone Private Equity Strategies Fund (TE) L.P. has experienced a dramatic increase in net assets, growing from $1.33 billion at December 31, 2024, to $2.49 billion as of September 30, 2025. This growth was fueled by substantial capital inflows from unit issuance ($971.92 million) and a significant surge in the net change in unrealized gains on its investment in BXPE U.S. ($240.14 million vs. $69.97 million). While net income from operations saw a robust increase, servicing fees also rose, indicating higher operational costs associated with the expanded fund size.

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

View Full Filing

View this 10-Q filing on SEC EDGAR