4.	INVESTMENTS

Investments consist of the following:


	September 30, 2013		December 31, 2012
Investments of Consolidated Blackstone Funds	$	12,328,927	$	14,026,745
Equity Method Investments		2,964,438		2,582,504
Blackstone’s Treasury Cash Management Strategies		1,066,170		1,411,680
Performance Fees		3,705,713		2,780,217
Other Investments		86,138		46,124

	$	20,151,386	$	20,847,270

Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $506.3 million and $500.5 million at September 30, 2013 and December 31, 2012, respectively.

At September 30, 2013 and December 31, 2012, 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 September 30, 2013 and December 31, 2012, 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 and a reconciliation to Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Realized Gains (Losses)	$	(2,932	)	$	6,162		$	95,403		$	(4,279	)
Net Change in Unrealized Gains (Losses)		46,872			(152,801	)		(36,855	)		235,368

Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds		43,940			(146,639	)		58,548			231,089
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds		44,012			10,679			137,580			169,323

Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities	$	87,952		$	(135,960	)	$	196,128		$	400,412

Equity Method Investments

Blackstone’s equity method investments include its investments in private equity funds, real estate funds, funds of hedge funds and credit-focused 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 September 30, 2013 and 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.

The Partnership recognized net gains related to its equity method investments of $71.3 million and $81.4 million for the three months ended September 30, 2013 and 2012, respectively. The Partnership recognized net gains related to its equity method investments of $282.6 million and $125.4 million for the nine months ended September 30, 2013 and 2012, respectively.

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 September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Realized Gains (Losses)	$	(6,587	)	$	3,228	$	(4,030	)	$	3,238
Net Change in Unrealized Gains (Losses)		10,126			6,525		(9,041	)		7,351

	$	3,539		$	9,753	$	(13,071	)	$	10,589

Performance Fees

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


	Private Equity			Real Estate			Hedge Fund Solutions			Credit			Total
Performance Fees, December 31, 2012	$	780,474		$	1,633,279		$	6,214		$	360,250		$	2,780,217
Performance Fees Allocated as a Result of Changes in Fund Fair Values		165,884			1,156,423			45,520			210,801			1,578,628
Foreign Exchange Gain		—			2,540			—			—			2,540
Fund Distributions		(223,502	)		(273,755	)		(10,875	)		(147,540	)		(655,672	)

Performance Fees, September 30, 2013	$	722,856		$	2,518,487		$	40,859		$	423,511		$	3,705,713

Other Investments

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


	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Realized Gains (Losses)	$	(168	)	$	111		$	13,938		$	907
Net Change in Unrealized Gains (Losses)		1,331			(912	)		(11,170	)		(722	)

	$	1,163		$	(801	)	$	2,768		$	185