4.	INVESTMENTS

Investment

Investments consist of the following:


	June 30,		December 31,
	2012		2011
Investments of Consolidated Blackstone Funds	$	14,057,705	$	10,306,795
Equity Method Investments		2,253,086		2,218,103
Blackstone’s Treasury Cash Management Strategies		738,886		685,859
Performance Fees		2,271,290		1,889,152
Other Investments		30,491		28,390

	$	19,351,458	$	15,128,299

Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $486.1 million and $449.6 million at June 30, 2012 and December 31, 2011, respectively.

At June 30, 2012 and December 31, 2011, consideration was given as to whether any individual investment, including derivative instruments, had a fair value which exceeded 5% of Blackstone’s net assets. At June 30, 2012 and December 31, 2011, no investment exceeded the 5% threshold.

Investments of Consolidated Blackstone Funds

The following table presents the realized and net change in unrealized gains (losses) on investments held by the consolidated Blackstone Funds:


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Realized Gains (Losses)	$	(54,791	)	$	36,654		$	(10,441	)	$	106,755
Net Change in Unrealized Gains (Losses)		232,484			(142,941	)		388,169			(277,831	)

	$	177,693		$	(106,287	)	$	377,728		$	(171,076	)

The following reconciles the Realized and Net Change in Unrealized Gains (Losses) from Blackstone Funds presented above to Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations:


	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Realized and Net Change in Unrealized Gains (Losses) from Blackstone Funds	$	177,693	$	(106,287	)	$	377,728	$	(171,076	)
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds		70,537		31,633			158,644		51,231

Other Income — Net Gains (Losses) from Fund Investment Activities	$	248,230	$	(74,654	)	$	536,372	$	(119,845	)

Equity Method Investments

The Partnership recognized net gains related to its equity method investments of $44.0 million and $183.6 million for the six months ended June 30, 2012 and 2011, respectively.

Blackstone’s equity method investments include its investments in private equity funds, real estate funds, funds of hedge funds and credit-oriented funds and other proprietary investments, which are not consolidated but in which the Partnership exerts significant influence.

Blackstone evaluates each of its equity method investments to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission. As of and for the three months ended June 30, 2012, no individual equity method investment held by Blackstone met the significance criteria. As such, Blackstone is not required to present summarized financial information for any of its equity method investments.

Blackstone’s Treasury Cash Management Strategies

The portion of Blackstone’s Treasury cash management strategies included in Investments represents the Partnership’s liquid investments in government, other investment and non-investment grade securities and other investments. These strategies are primarily managed by third-party institutions. The following table presents the realized and net change in unrealized gains (losses) on investments held by Blackstone’s Treasury cash management strategies:


	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Realized Gains	$	2,167	$	1,321	$	10	$	1,020
Net Change in Unrealized Gains (Losses)		5,245		1,592		826		2,221

	$	7,412	$	2,913	$	836	$	3,241

Performance Fees

Performance Fees allocated to the general partner in respect of performance of certain Carry Funds, funds of hedge funds and credit-oriented funds were as follows:


	Private			Real			Hedge Fund			Credit
	Equity			Estate			Solutions			Businesses			Total
Performance Fees, December 31, 2011	$	620,359		$	943,859		$	1,858		$	323,076		$	1,889,152
Performance Fees Allocated as a Result of Changes in Fund Fair Values		(14,305	)		388,089			10,375			104,978			489,137
Foreign Exchange Loss		—			(3,094	)		—			—			(3,094	)
Fund Cash Distributions		(3,349	)		(19,110	)		(3,843	)		(77,603	)		(103,905	)

Performance Fees, June 30, 2012	$	602,705		$	1,309,744		$	8,390		$	350,451		$	2,271,290

Other Investments

Other Investments consist primarily of investment securities held by Blackstone for its own account. The following table presents Blackstone’s realized and net change in unrealized gains (losses) in other investments:


	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012		2011
Realized Gains	$	541		$	399	$	796	$	399
Net Change in Unrealized Gains (Losses)		(2,547	)		343		190		1,292

	$	(2,006	)	$	742	$	986	$	1,691