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Investments | 12 Months Ended
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Dec. 31, 2022
Investments | 4. Investments Investments consist of the following:
|  | December 31,
|  | 2022 |  | 2021
Investments of Consolidated Blackstone Funds |  | $ | 5,136,966 |  |  | $ | 2,018,829 |
Equity Method Investments |  |  |  |  |  |  |  |
Partnership Investments |  |  | 5,530,419 |  |  |  | 5,635,212 |
Accrued Performance Allocations |  |  | 12,360,684 |  |  |  | 17,096,873 |
Corporate Treasury Investments |  |  | 1,053,540 |  |  |  | 658,066 |
Other Investments |  |  | 3,471,642 |  |  |  | 3,256,063 |
|  | $ | 27,553,251 |  |  | $ | 28,665,043 |
Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $393.9 million and $375.8 million at December 31, 2022 and December 31, 2021, respectively. Where appropriate, the accounting for Blackstone’s investments incorporates the changes in fair value of those investments as determined under GAAP. The significant inputs and assumptions required to determine the change in fair value of the investments of Consolidated Blackstone Funds, Corporate Treasury Investments and Other Investments are discussed in more detail in Note 8. “Fair Value Measurements of Financial Instruments.” 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 Consolidated Statements of Operations:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Realized Gains (Losses) |  | $ | 99,457 |  |  | $ | 145,305 |  |  | $ | (126,397 | )
Net Change in Unrealized Losses |  |  | (264,204 | ) |  |  | 289,938 |  |  |  | 60,363 |
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds |  |  | (164,747 | ) |  |  | 435,243 |  |  |  | (66,034 | )
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds |  |  | 59,605 |  |  |  | 26,381 |  |  |  | 96,576 |
Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities |  | $ | (105,142 | ) |  | $ | 461,624 |  |  | $ | 30,542 |
Equity Method Investments Blackstone’s equity method investments include Partnership Investments, which represent the pro-rata investments, and any associated Accrued Performance Allocations, in Blackstone Funds, excluding any equity method investments for which the fair value option has been elected. Prior to January 26, 2021, Partnership Investments also included the 40% non-controlling interest in Pátria Investments Limited and Pátria Investimentos Ltda. (collectively, “Pátria”). On January 26, 2021, Pátria completed its IPO, pursuant to which Blackstone sold a portion of its interests and ceased to have representatives or the right to designate representatives on Pátria’s board of directors. As a result of Pátria’s pre-IPO reorganization transactions (which included Blackstone’s sale of 10% of Pátria’s pre-IPO shares to Pátria’s controlling shareholder) and the consummation of the IPO, Blackstone was deemed to no longer have significant influence over Pátria due to Blackstone’s decreased ownership and lack of board representation. Following the IPO, the retained interest in Pátria is included in Other Investments and accounted for at fair value in accordance with the GAAP guidance for investments in equity securities with a readily determinable fair value. Blackstone sold its remaining shares of Pátria during the three months ended September 30, 2021. Blackstone evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission (“SEC”). As of and for the years ended December 31, 2022, 2021 and 2020, no individual equity method investment held by Blackstone met the significance criteria. As such, Blackstone is not required to present separate financial statements for any of its equity method investments. Partnership Investments Blackstone recognized net gains related to its Partnership Investments accounted for under the equity method of $292.1 million, $1.9 billion and $320.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. The summarized financial information of Blackstone’s equity method investments for December 31, 2022 are as follows:
|  | December 31, 2022 and the Year Then Ended
|  | Real Estate |  | Private Equity |  | Credit & Insurance |  | Hedge Fund Solutions |  | Total
Statement of Financial Condition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 295,985,447 |  |  | $ | 182,732,362 |  |  | $ | 87,362,311 |  |  | $ | 38,209,892 |  |  | $ | 604,290,012 |
Other Assets |  |  | 13,601,083 |  |  |  | 3,194,088 |  |  |  | 6,345,260 |  |  |  | 4,079,065 |  |  |  | 27,219,496 |
Total Assets |  | $ | 309,586,530 |  |  | $ | 185,926,450 |  |  | $ | 93,707,571 |  |  | $ | 42,288,957 |  |  | $ | 631,509,508 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt |  | $ | 118,075,949 |  |  | $ | 22,779,131 |  |  | $ | 39,049,599 |  |  | $ | 662,805 |  |  | $ | 180,567,484 |
Other Liabilities |  |  | 7,735,780 |  |  |  | 1,310,998 |  |  |  | 5,644,625 |  |  |  | 2,092,757 |  |  |  | 16,784,160 |
Total Liabilities |  |  | 125,811,729 |  |  |  | 24,090,129 |  |  |  | 44,694,224 |  |  |  | 2,755,562 |  |  |  | 197,351,644 |
Equity |  |  | 183,774,801 |  |  |  | 161,836,321 |  |  |  | 49,013,347 |  |  |  | 39,533,395 |  |  |  | 434,157,864 |
Total Liabilities and Equity |  | $ | 309,586,530 |  |  | $ | 185,926,450 |  |  | $ | 93,707,571 |  |  | $ | 42,288,957 |  |  | $ | 631,509,508 |
Statement of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Income |  | $ | 2,917,115 |  |  | $ | 2,012,916 |  |  | $ | 5,764,150 |  |  | $ | 16,069 |  |  | $ | 10,710,250 |
Other Income |  |  | 9,432,802 |  |  |  | 824,779 |  |  |  | 690,193 |  |  |  | 286,444 |  |  |  | 11,234,218 |
Interest Expense |  |  | (3,644,118 | ) |  |  | (722,626 | ) |  |  | (1,450,447 | ) |  |  | (41,522 | ) |  |  | (5,858,713 | )
Other Expenses |  |  | (11,089,520 | ) |  |  | (2,132,320 | ) |  |  | (1,303,902 | ) |  |  | (255,459 | ) |  |  | (14,781,201 | )
Net Realized and Unrealized Gain from Investments |  |  | 7,807,056 |  |  |  | 2,146,281 |  |  |  | (1,330,895 | ) |  |  | 483,946 |  |  |  | 9,106,388 |
Net Income |  | $ | 5,423,335 |  |  | $ | 2,129,030 |  |  | $ | 2,369,099 |  |  | $ | 489,478 |  |  | $ | 10,410,942 |
The summarized financial information of Blackstone’s equity method investments for December 31, 2021 are as follows:
|  | December 31, 2021 and the Year Then Ended
|  | Real Estate |  | Private Equity |  | Credit & Insurance |  | Hedge Fund Solutions |  | Total
Statement of Financial Condition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 241,808,879 |  |  | $ | 175,726,829 |  |  | $ | 68,426,090 |  |  | $ | 39,691,668 |  |  | $ | 525,653,466 |
Other Assets |  |  | 13,463,009 |  |  |  | 5,776,462 |  |  |  | 5,412,041 |  |  |  | 3,020,159 |  |  |  | 27,671,671 |
Total Assets |  | $ | 255,271,888 |  |  | $ | 181,503,291 |  |  | $ | 73,838,131 |  |  | $ | 42,711,827 |  |  | $ | 553,325,137 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt |  | $ | 76,760,932 |  |  | $ | 20,434,354 |  |  | $ | 30,792,984 |  |  | $ | 1,243,453 |  |  | $ | 129,231,723 |
Other Liabilities |  |  | 6,999,032 |  |  |  | 2,153,071 |  |  |  | 3,159,548 |  |  |  | 3,084,558 |  |  |  | 15,396,209 |
Total Liabilities |  |  | 83,759,964 |  |  |  | 22,587,425 |  |  |  | 33,952,532 |  |  |  | 4,328,011 |  |  |  | 144,627,932 |
Equity |  |  | 171,511,924 |  |  |  | 158,915,866 |  |  |  | 39,885,599 |  |  |  | 38,383,816 |  |  |  | 408,697,205 |
Total Liabilities and Equity |  | $ | 255,271,888 |  |  | $ | 181,503,291 |  |  | $ | 73,838,131 |  |  | $ | 42,711,827 |  |  | $ | 553,325,137 |
Statement of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Income |  | $ | 1,422,743 |  |  | $ | 1,640,402 |  |  | $ | 2,584,486 |  |  | $ | 3,563 |  |  | $ | 5,651,194 |
Other Income |  |  | 6,115,960 |  |  |  | 318,485 |  |  |  | 306,490 |  |  |  | 315,894 |  |  |  | 7,056,829 |
Interest Expense |  |  | (1,475,065 | ) |  |  | (331,350 | ) |  |  | (427,459 | ) |  |  | (30,073 | ) |  |  | (2,263,947 | )
Other Expenses |  |  | (6,847,739 | ) |  |  | (1,666,930 | ) |  |  | (828,689 | ) |  |  | (282,474 | ) |  |  | (9,625,832 | )
Net Realized and Unrealized Gain from Investments |  |  | 31,078,396 |  |  |  | 43,895,781 |  |  |  | 3,562,579 |  |  |  | 4,605,235 |  |  |  | 83,141,991 |
Net Income |  | $ | 30,294,295 |  |  | $ | 43,856,388 |  |  | $ | 5,197,407 |  |  | $ | 4,612,145 |  |  | $ | 83,960,235 |
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments.
The summarized financial information of Blackstone’s equity method investments for December 31, 2020 are as follows:
|  | December 31, 2020 and the Year Then Ended
|  | Real Estate |  | Private Equity |  | Credit & Insurance |  | Hedge Fund Solutions |  | Other (a) |  | Total
Statement of Financial Condition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments |  | $ | 140,317,595 |  |  | $ | 112,647,584 |  |  | $ | 25,473,283 |  |  | $ | 32,829,525 |  |  | $ | 11,915 |  |  | $ | 311,279,902 |
Other Assets |  |  | 5,234,463 |  |  |  | 2,650,267 |  |  |  | 2,088,882 |  |  |  | 3,047,256 |  |  |  | 95,798 |  |  |  | 13,116,666 |
Total Assets |  | $ | 145,552,058 |  |  | $ | 115,297,851 |  |  | $ | 27,562,165 |  |  | $ | 35,876,781 |  |  | $ | 107,713 |  |  | $ | 324,396,568 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt |  | $ | 29,962,733 |  |  | $ | 15,928,802 |  |  | $ | 7,553,301 |  |  | $ | 886,292 |  |  | $ | — |  |  | $ | 54,331,128 |
Other Liabilities |  |  | 5,777,808 |  |  |  | 1,657,846 |  |  |  | 1,216,354 |  |  |  | 3,320,551 |  |  |  | 48,275 |  |  |  | 12,020,834 |
Total Liabilities |  |  | 35,740,541 |  |  |  | 17,586,648 |  |  |  | 8,769,655 |  |  |  | 4,206,843 |  |  |  | 48,275 |  |  |  | 66,351,962 |
Equity |  |  | 109,811,517 |  |  |  | 97,711,203 |  |  |  | 18,792,510 |  |  |  | 31,669,938 |  |  |  | 59,438 |  |  |  | 258,044,606 |
Total Liabilities and Equity |  | $ | 145,552,058 |  |  | $ | 115,297,851 |  |  | $ | 27,562,165 |  |  | $ | 35,876,781 |  |  | $ | 107,713 |  |  | $ | 324,396,568 |
Statement of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Income |  | $ | 608,120 |  |  | $ | 1,083,534 |  |  | $ | 1,196,544 |  |  | $ | 22,157 |  |  | $ | — |  |  | $ | 2,910,355 |
Other Income |  |  | 1,074,818 |  |  |  | 71,219 |  |  |  | 323,577 |  |  |  | 283,250 |  |  |  | 115,504 |  |  |  | 1,868,368 |
Interest Expense |  |  | (1,006,311 | ) |  |  | (345,060 | ) |  |  | (211,507 | ) |  |  | (68,887 | ) |  |  | — |  |  |  | (1,631,765 | )
Other Expenses |  |  | (1,889,153 | ) |  |  | (1,405,029 | ) |  |  | (525,456 | ) |  |  | (225,384 | ) |  |  | (53,292 | ) |  |  | (4,098,314 | )
Net Realized and Unrealized Gain (Losses) from Investments |  |  | 5,150,127 |  |  |  | 7,638,733 |  |  |  | (1,965,087 | ) |  |  | 2,449,079 |  |  |  | — |  |  |  | 13,272,852 |
Net Income (Loss) |  | $ | 3,937,601 |  |  | $ | 7,043,397 |  |  | $ | (1,181,929 | ) |  | $ | 2,460,215 |  |  | $ | 62,212 |  |  | $ | 12,321,496 |
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments.
Accrued Performance Allocations Accrued Performance Allocations to Blackstone were as follows:
|  | Real Estate |  | Private Equity |  | Credit & Insurance |  | Hedge Fund Solutions |  | Total
Accrued Performance Allocations, December 31, 2021 |  | $ | 8,471,754 |  |  | $ | 7,550,468 |  |  | $ | 618,246 |  |  | $ | 456,405 |  |  | $ | 17,096,873 |
Performance Allocations as a Result of Changes in Fund Fair Values |  |  | 2,072,431 |  |  |  | (71,156 | ) |  |  | 106,622 |  |  |  | 58,216 |  |  |  | 2,166,113 |
Foreign Exchange Loss |  |  | (122,812 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (122,812 | )
Impact of Consolidation |  |  | (10,393 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (10,393 | )
Fund Distributions |  |  | (5,076,863 | ) |  |  | (1,441,737 | ) |  |  | (154,970 | ) |  |  | (95,527 | ) |  |  | (6,769,097 | )
Accrued Performance Allocations, December 31, 2022 |  | $ | 5,334,117 |  |  | $ | 6,037,575 |  |  | $ | 569,898 |  |  | $ | 419,094 |  |  | $ | 12,360,684 |
Corporate Treasury Investments The portion of corporate treasury investments included in Investments represents Blackstone’s investments into primarily fixed income securities, mutual fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Realized Gains (Losses) |  | $ | (21,511 | ) |  | $ | 741 |  |  | $ | 44,700 |
Net Change in Unrealized Gains (Losses) |  |  | (57,426 | ) |  |  | 39,549 |  |  |  | (91,299 | )
|  | $ | (78,937 | ) |  | $ | 40,290 |  |  | $ | (46,599 | )
Other Investments Other Investments consist of equity method investments where Blackstone has elected the fair value option and other proprietary investment securities held by Blackstone, including equity securities carried at fair value, equity investments without readily determinable fair values, and subordinated notes in non-consolidated CLO vehicles. Equity securities carried at fair value include the ownership of common stock of Corebridge Financial, Inc., formerly known as American International Group, Inc.’s Life and Retirement business (“Corebridge”). Such common stock is subject to certain phased lock-up restrictions that expire over time through five years after the initial public offering (“IPO”) of Corebridge. Equity investments without a readily determinable fair value had a carrying value of $375.5 million as of December 31, 2022. In the period of acquisition and upon remeasurement in connection with an observable transaction, such investments are reported at fair value. See Note 8. “Fair Value Measurements of Financial Instruments” for additional detail. Upward adjustments related to investments held as of December 31, 2022 were $ 6.4 million during the year ended December 31, 2022, and $240.2 million on a cumulative basis since the inception of the investments. The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in Other Investments:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Realized Gains |  | $ | 203,327 |  |  | $ | 163,199 |  |  | $ | 19,573 |
Net Change in Unrealized Gains (Losses) |  |  | (1,128,244 | ) |  |  | 340,867 |  |  |  | (2,647 | )
|  | $ | (924,917 | ) |  | $ | 504,066 |  |  | $ | 16,926 |

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- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611322-123010 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-12B) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611197-123010 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5D -Subparagraph (SX 210.12-13D) -URI https://asc.fasb.org/extlink&oid=122147990&loc=SL120429264-123010 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-12) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611133-123010 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 5 -Subparagraph (SX 210.12-13) -URI https://asc.fasb.org/extlink&oid=122147990&loc=d3e611282-123010 + Details
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