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Investments
 12 Months Ended
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