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Fair Value Measurements of Financial Instruments | 12 Months Ended
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Dec. 31, 2022
Fair Value Measurements of Financial Instruments | 8. Fair Value Measurements of Financial Instruments The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy:
|  | December 31, 2022
|  | Level I |  | Level II |  | Level III |  | NAV |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and Cash Equivalents |  | $ | 1,134,733 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,134,733 |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnerships and LLC Interests (a) |  |  | 12,024 |  |  |  | 149,689 |  |  |  | 4,195,859 |  |  |  | 596,708 |  |  |  | 4,954,280 |
Debt Instruments |  |  | — |  |  |  | 53,787 |  |  |  | 53,973 |  |  |  | — |  |  |  | 107,760 |
Freestanding Derivatives |  |  | — |  |  |  | 74,926 |  |  |  | — |  |  |  | — |  |  |  | 74,926 |
Total Investments of Consolidated Blackstone Funds |  |  | 12,024 |  |  |  | 278,402 |  |  |  | 4,249,832 |  |  |  | 596,708 |  |  |  | 5,136,966 |
Corporate Treasury Investments |  |  | 116,266 |  |  |  | 931,406 |  |  |  | 5,868 |  |  |  | — |  |  |  | 1,053,540 |
Other Investments (b) |  |  | 1,473,611 |  |  |  | 1,597,696 |  |  |  | 51,155 |  |  |  | 5,985 |  |  |  | 3,128,447 |
Total Investments |  |  | 1,601,901 |  |  |  | 2,807,504 |  |  |  | 4,306,855 |  |  |  | 602,693 |  |  |  | 9,318,953 |
Accounts Receivable — Loans and Receivables |  |  | — |  |  |  | — |  |  |  | 315,039 |  |  |  | — |  |  |  | 315,039 |
Other Assets — Freestanding Derivatives |  |  | 279 |  |  |  | 196,188 |  |  |  | 6,210 |  |  |  | — |  |  |  | 202,677 |
|  | $ | 2,736,913 |  |  | $ | 3,003,692 |  |  | $ | 4,628,104 |  |  | $ | 602,693 |  |  | $ | 10,971,402 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities Sold, Not Yet Purchased |  | $ | 3,825 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,825 |
Accounts Payable, Accrued Expenses and Other Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Blackstone Funds — Freestanding Derivatives |  |  | — |  |  |  | 284 |  |  |  | — |  |  |  | — |  |  |  | 284 |
Freestanding Derivatives (c) |  |  | 21 |  |  |  | 88,161 |  |  |  | 48,581 |  |  |  | — |  |  |  | 136,763 |
Corporate Treasury Commitments (d) |  |  | — |  |  |  | — |  |  |  | 8,144 |  |  |  | — |  |  |  | 8,144 |
Total Accounts Payable, Accrued Expenses and Other Liabilities |  |  | 21 |  |  |  | 88,445 |  |  |  | 56,725 |  |  |  | — |  |  |  | 145,191 |
|  | $ | 3,846 |  |  | $ | 88,445 |  |  | $ | 56,725 |  |  | $ | — |  |  | $ | 149,016 |
|  | December 31, 2021
|  | Level I |  | Level II |  | Level III |  | NAV |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and Cash Equivalents |  | $ | 173,408 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 173,408 |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Funds |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 18,365 |  |  |  | 18,365 |
Equity Securities, Partnerships and LLC Interests (a) |  |  | 70,484 |  |  |  | 122,068 |  |  |  | 1,170,362 |  |  |  | 363,902 |  |  |  | 1,726,816 |
Debt Instruments |  |  | 642 |  |  |  | 242,393 |  |  |  | 29,953 |  |  |  | — |  |  |  | 272,988 |
Freestanding Derivatives |  |  | — |  |  |  | 660 |  |  |  | — |  |  |  | — |  |  |  | 660 |
Total Investments of Consolidated Blackstone Funds |  |  | 71,126 |  |  |  | 365,121 |  |  |  | 1,200,315 |  |  |  | 382,267 |  |  |  | 2,018,829 |
Corporate Treasury Investments |  |  | 86,877 |  |  |  | 570,712 |  |  |  | 477 |  |  |  | — |  |  |  | 658,066 |
Other Investments (b) |  |  | 478,892 |  |  |  | 210,752 |  |  |  | 2,518,032 |  |  |  | 4,845 |  |  |  | 3,212,521 |
Total Investments |  |  | 636,895 |  |  |  | 1,146,585 |  |  |  | 3,718,824 |  |  |  | 387,112 |  |  |  | 5,889,416 |
Accounts Receivable — Loans and Receivables |  |  | — |  |  |  | — |  |  |  | 392,732 |  |  |  | — |  |  |  | 392,732 |
Other Assets — Freestanding Derivatives |  |  | 113 |  |  |  | 145,288 |  |  |  | — |  |  |  | — |  |  |  | 145,401 |
|  | $ | 810,416 |  |  | $ | 1,291,873 |  |  | $ | 4,111,556 |  |  | $ | 387,112 |  |  | $ | 6,600,957 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities Sold, Not Yet Purchased |  | $ | 4,292 |  |  | $ | 23,557 |  |  | $ | — |  |  | $ | — |  |  | $ | 27,849 |
Accounts Payable, Accrued Expenses and Other Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Blackstone Funds — Freestanding Derivatives |  |  | — |  |  |  | 1,933 |  |  |  | — |  |  |  | — |  |  |  | 1,933 |
Freestanding Derivatives |  |  | 323 |  |  |  | 145,552 |  |  |  | — |  |  |  | — |  |  |  | 145,875 |
Corporate Treasury Commitments (d) |  |  | — |  |  |  | — |  |  |  | 636 |  |  |  | — |  |  |  | 636 |
Total Accounts Payable, Accrued Expenses and Other Liabilities |  |  | 323 |  |  |  | 147,485 |  |  |  | 636 |  |  |  | — |  |  |  | 148,444 |
|  | $ | 4,615 |  |  | $ | 171,042 |  |  | $ | 636 |  |  | $ | — |  |  | $ | 176,293 |
LLC | Limited Liability Company.
(a) | Equity Securities, Partnership and LLC Interest includes investments in investment funds. Prior period amounts have been reclassified to this presentation.
(b) | Other Investments includes Blackstone’s ownership of common stock of Corebridge. Following Corebridge’s IPO in September 2022, a quoted price for Corebridge’s common shares exists and as such the investment will be measured at fair value on a recurring basis as a Level I investment. Blackstone’s investment in Corebridge was previously valued as a Level III investment on a nonrecurring basis using the measurement alternative. See Note 4. “Investments — Other Investments” for additional details.
(c) | Level III freestanding derivatives are valued using an option pricing model where the significant inputs include the expected return and expected volatility.
(d) | Corporate Treasury Commitments are measured using third party pricing.
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2022:
|  |  |  |  |  |  |  |  |  |  |  | Impact to
|  |  |  |  |  |  |  |  |  |  |  | Valuation
|  |  |  |  |  |  |  |  |  |  |  | from an
|  |  |  | Valuation |  | Unobservable |  |  |  | Weighted- |  | Increase
|  | Fair Value |  | Techniques |  | Inputs |  | Ranges |  | Average (a) |  | in Input
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnership and LLC Interests |  | $ | 4,195,859 |  |  | Discounted Cash Flows |  | Discount Rate |  | 4.1% - 34.5% |  | 8.8% |  | Lower
|  |  |  |  |  |  |  | Exit Multiple - EBITDA |  | 4.0x - 30.6x |  | 14.7x |  | Higher
|  |  |  |  |  |  |  | Exit Capitalization Rate |  | 2.6% - 14.4% |  | 4.7% |  | Lower
|  |  |  |  |  | Transaction Price |  | n/a |  |  |  |  |  |
Debt Instruments |  |  | 53,973 |  |  | Transaction Price |  | n/a |  |  |  |  |  |
|  |  |  |  |  | Third Party Pricing |  | n/a |  |  |  |  |  |
Total Investments of Consolidated Blackstone Funds |  |  | 4,249,832 |  |  |  |  |  |  |  |  |  |  |
Corporate Treasury Investments |  |  | 5,868 |  |  | Third Party Pricing |  | n/a |  |  |  |  |  |
Loans and Receivables |  |  | 315,039 |  |  | Discounted Cash Flows |  | Discount Rate |  | 7.6% - 11.5% |  | 9.8% |  | Lower
Other Investments (b) |  |  | 57,365 |  |  | Transaction Price |  | n/a |  |  |  |  |  |
|  |  |  |  |  | Third Party Pricing |  | n/a |  |  |  |  |  |
|  | $ | 4,628,104 |  |  |  |  |  |  |  |  |  |  |
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2021:
|  |  |  |  |  |  |  |  |  |  |  | Impact to
|  |  |  |  |  |  |  |  |  |  |  | Valuation
|  |  |  |  |  |  |  |  |  |  |  | from an
|  |  |  | Valuation |  | Unobservable |  |  |  | Weighted- |  | Increase
|  | Fair Value |  | Techniques |  | Inputs |  | Ranges |  | Average (a) |  | in Input
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnership and LLC Interests |  | $ | 1,170,362 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  | 1.3% - 43.3% |  | 10.4% |  | Lower
|  |  |  |  |  |  |  |  |  |  | Exit Multiple - EBITDA |  |  | 3.7x - 31.4x |  | 14.7x |  | Higher
|  |  |  |  |  |  |  |  |  |  | Exit Capitalization Rate |  |  | 1.3% - 17.3% |  | 4.9% |  | Lower
Debt Instruments |  |  | 29,953 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  | 6.5% - 19.3% |  | 9.0% |  | Lower
|  |  |  |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |
Total Investments of Consolidated Blackstone Funds |  |  | 1,200,315 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate Treasury Investments |  |  | 477 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  | 9.4 % |  | n/a |  | Lower
|  |  |  |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |
Loans and Receivables |  |  | 392,732 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  | 6.5% - 12.2% |  | 7.6% |  | Lower
Other Investments |  |  | 2,518,032 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |
|  |  |  |  |  |  | Transaction Price |  |  |  | n/a |  |  |  |  |  |  |
|  | $ | 4,111,556 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
n/a |  | Not applicable.
EBITDA |  | Earnings before interest, taxes, depreciation and amortization.
Exit Multiple |  | Ranges include the last twelve months EBITDA and forward EBITDA multiples.
Third Party Pricing |  | Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services.
Transaction Price |  | Includes recent acquisitions or transactions.
(a) |  | Unobservable inputs were weighted based on the fair value of the investments included in the range.
(b) |  | As of December 31, 2022, Other Investments includes Level III Freestanding Derivatives.
During the year ended December 31, 2022, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments. The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. These tables also exclude financial assets and liabilities measured at fair value on a non-recurring basis. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Consolidated Statements of Operations.
|  | Level III Financial Assets at Fair Value
|  | Year Ended December 31,
|  | 2022 |  | 2021
|  | Investments of Consolidated Funds |  | Loans and Receivables |  | Other Investments (a) |  | Total |  | Investments of Consolidated Funds |  | Loans and Receivables |  | Other Investments (a) |  | Total
Balance, Beginning of Period |  | $ | 1,200,315 |  |  | $ | 392,732 |  |  | $ | 43,987 |  |  | $ | 1,637,034 |  |  | $ | 858,310 |  |  | $ | 581,079 |  |  | $ | 46,158 |  |  | $ | 1,485,547 |
Transfer In Due to Consolidation and Acquisition |  |  | 2,985,171 |  |  |  | — |  |  |  | — |  |  |  | 2,985,171 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Transfer In to Level III (b) |  |  | 2,040 |  |  |  | — |  |  |  | 2,517 |  |  |  | 4,557 |  |  |  | 8,254 |  |  |  | — |  |  |  | 14,162 |  |  |  | 22,416 |
Transfer Out of Level III (b) |  |  | (76,621 | ) |  |  | — |  |  |  | (19,597 | ) |  |  | (96,218 | ) |  |  | (111,952 | ) |  |  | — |  |  |  | (16,388 | ) |  |  | (128,340 | )
Purchases |  |  | 636,338 |  |  |  | 805,375 |  |  |  | 14,524 |  |  |  | 1,456,237 |  |  |  | 381,826 |  |  |  | 955,236 |  |  |  | 225,297 |  |  |  | 1,562,359 |
Sales |  |  | (428,379 | ) |  |  | (882,668 | ) |  |  | (3,797 | ) |  |  | (1,314,844 | ) |  |  | (292,843 | ) |  |  | (1,132,405 | ) |  |  | (226,866 | ) |  |  | (1,652,114 | )
Issuances |  |  | — |  |  |  | 39,514 |  |  |  | — |  |  |  | 39,514 |  |  |  | — |  |  |  | 58,221 |  |  |  | — |  |  |  | 58,221 |
Settlements |  |  | — |  |  |  | (55,308 | ) |  |  | (4,433 | ) |  |  | (59,741 | ) |  |  | — |  |  |  | (85,444 | ) |  |  | — |  |  |  | (85,444 | )
Changes in Gains (Losses) Included in Earnings |  |  | (69,032 | ) |  |  | 15,394 |  |  |  | (2,230 | ) |  |  | (55,868 | ) |  |  | 356,720 |  |  |  | 16,045 |  |  |  | 1,624 |  |  |  | 374,389 |
Balance, End of Period |  | $ | 4,249,832 |  |  | $ | 315,039 |  |  | $ | 30,971 |  |  | $ | 4,595,842 |  |  | $ | 1,200,315 |  |  | $ | 392,732 |  |  | $ | 43,987 |  |  | $ | 1,637,034 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date |  | $ | (136,037 | ) |  | $ | (13,384 | ) |  | $ | (11,271 | ) |  | $ | (160,692 | ) |  | $ | 298,740 |  |  | $ | (9,005 | ) |  | $ | 1,412 |  |  | $ | 291,147 |
(a) | Represents corporate treasury investments and Other Investments.
(b) | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities.

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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