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Fair Value Measurements of Financial Instruments | 3 Months Ended
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Mar. 31, 2024
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:
|  | March 31, 2024
|  | Level I |  | Level II |  | Level III |  | NAV |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and Cash Equivalents |  | $ | 214,997 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 214,997 |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnerships and LLC Interests (a) |  |  | 10,259 |  |  |  | 119,238 |  |  |  | 2,688,028 |  |  |  | 469,012 |  |  |  | 3,286,537 |
Debt Instruments |  |  | — |  |  |  | 130,010 |  |  |  | 15,564 |  |  |  | — |  |  |  | 145,574 |
Freestanding Derivatives |  |  | — |  |  |  | 26,800 |  |  |  | — |  |  |  | — |  |  |  | 26,800 |
Total Investments of Consolidated Blackstone Funds |  |  | 10,259 |  |  |  | 276,048 |  |  |  | 2,703,592 |  |  |  | 469,012 |  |  |  | 3,458,911 |
Corporate Treasury Investments |  |  | 67,688 |  |  |  | 121,712 |  |  |  | 8,576 |  |  |  | — |  |  |  | 197,976 |
Other Investments |  |  | 2,006,970 |  |  |  | 2,590,956 |  |  |  | 72,555 |  |  |  | 7,081 |  |  |  | 4,677,562 |
Total Investments |  |  | 2,084,917 |  |  |  | 2,988,716 |  |  |  | 2,784,723 |  |  |  | 476,093 |  |  |  | 8,334,449 |
Accounts Receivable - Loans and Receivables |  |  | — |  |  |  | — |  |  |  | 95,532 |  |  |  | — |  |  |  | 95,532 |
O ther Assets - Freestanding Derivatives |  |  | — |  |  |  | 157,852 |  |  |  | 5,812 |  |  |  | — |  |  |  | 163,664 |
|  | $ | 2,299,914 |  |  | $ | 3,146,568 |  |  | $ | 2,886,067 |  |  | $ | 476,093 |  |  | $ | 8,808,642 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Payable - CLO Notes Payable |  | $ | — |  |  | $ | 169,835 |  |  | $ | — |  |  | $ | — |  |  | $ | 169,835 |
Accounts Payable, Accrued Expenses and Other Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Freestanding Derivatives |  |  | — |  |  |  | 97,975 |  |  |  | 646,002 |  |  |  | — |  |  |  | 743,977 |
Contingent Consideration |  |  | — |  |  |  | — |  |  |  | 504 |  |  |  | — |  |  |  | 504 |
Corporate Treasury Commitments |  |  | — |  |  |  | — |  |  |  | 887 |  |  |  | — |  |  |  | 887 |
Securities Sold, Not Yet Purchased |  |  | 3,867 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,867 |
Total Accounts Payable, Accrued Expenses and Other Liabilities |  |  | 3,867 |  |  |  | 97,975 |  |  |  | 647,393 |  |  |  | — |  |  |  | 749,235 |
|  | $ | 3,867 |  |  | $ | 267,810 |  |  | $ | 647,393 |  |  | $ | — |  |  | $ | 919,070 |
|  | December 31, 2023
|  | Level I |  | Level II |  | Level III |  | NAV |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and Cash Equivalents |  | $ | 263,574 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 263,574 |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnerships and LLC Interests (a) |  |  | 11,118 |  |  |  | 123,022 |  |  |  | 2,653,246 |  |  |  | 558,259 |  |  |  | 3,345,645 |
Debt Instruments |  |  | — |  |  |  | 924,264 |  |  |  | 30,385 |  |  |  | — |  |  |  | 954,649 |
Freestanding Derivatives |  |  | — |  |  |  | 19,189 |  |  |  | — |  |  |  | — |  |  |  | 19,189 |
Total Investments of Consolidated Blackstone Funds |  |  | 11,118 |  |  |  | 1,066,475 |  |  |  | 2,683,631 |  |  |  | 558,259 |  |  |  | 4,319,483 |
Corporate Treasury Investments |  |  | 72,071 |  |  |  | 435,430 |  |  |  | 296,369 |  |  |  | — |  |  |  | 803,870 |
Other Investments |  |  | 1,564,112 |  |  |  | 2,355,423 |  |  |  | 223,441 |  |  |  | 7,275 |  |  |  | 4,150,251 |
Total Investments |  |  | 1,647,301 |  |  |  | 3,857,328 |  |  |  | 3,203,441 |  |  |  | 565,534 |  |  |  | 9,273,604 |
Accounts Receivable - Loans and Receivables |  |  | — |  |  |  | — |  |  |  | 60,738 |  |  |  | — |  |  |  | 60,738 |
O ther Assets - Freestanding Derivatives |  |  | 90 |  |  |  | 157,629 |  |  |  | 13,171 |  |  |  | — |  |  |  | 170,890 |
|  | $ | 1,910,965 |  |  | $ | 4,014,957 |  |  | $ | 3,277,350 |  |  | $ | 565,534 |  |  | $ | 9,768,806 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Payable - CLO Notes Payable |  | $ | — |  |  | $ | 687,122 |  |  | $ | — |  |  | $ | — |  |  | $ | 687,122 |
Accounts Payable, Accrued Expenses and Other Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Freestanding Derivatives |  |  | 436 |  |  |  | 90,199 |  |  |  | 563,986 |  |  |  | — |  |  |  | 654,621 |
Contingent Consideration |  |  | — |  |  |  | — |  |  |  | 387 |  |  |  | — |  |  |  | 387 |
Corporate Treasury Commitments |  |  | — |  |  |  | — |  |  |  | 1,264 |  |  |  | — |  |  |  | 1,264 |
Securities Sold, Not Yet Purchased |  |  | 3,886 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,886 |
Total Accounts Payable, Accrued Expenses and Other Liabilities |  |  | 4,322 |  |  |  | 90,199 |  |  |  | 565,637 |  |  |  | — |  |  |  | 660,158 |
|  | $ | 4,322 |  |  | $ | 777,321 |  |  | $ | 565,637 |  |  | $ | — |  |  | $ | 1,347,280 |
LLC Limited Liability Company.
(a) | Equity Securities, Partnership and LLC Interest includes investments in investment funds.
Within Investments of Consolidated Blackstone Funds and Other Investments, Blackstone held equity securities subject to sale restrictions with a fair value of $1.4 billion a s of March 31, 2024. The nature of such restrictions are contractual or legal in nature and deemed an attribute of the holder rather than the investment. Contractual restrictions include certain phased restrictions on sale or transfer, underwriter lock-ups and sale or transfer restrictions applicable to certain Investments of Consolidated Blackstone Funds pledged as collateral. Restrictions will generally lapse over time or after a predetermined date and the weighted-average remaining duration of such restrictions is 1.6 years. Level III equity securities included in Investments of Consolidated Blackstone Funds are illiquid and privately negotiated in nature and may also be subject to contractual sale or transfer restrictions including those pursuant to their respective governing or similar agreements. Investments within Other Investments subject to restrictions on sale or transfer as a result of pledge arrangements are discussed in Note 16. “Commitments and Contingencies — Contingencies — Strategic Ventures.” The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of March 31, 2024. Consistent with presentation in these Notes to Condensed Consolidated Financial Statements, this table presents the Level III Investments only of Consolidated Blackstone Funds and therefore does not reflect any other Blackstone Funds.
|  | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Ranges |  | Weighted- Average (a) |  | Impact to Valuation from an Increase in Input
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnership and LLC Interests |  | $ | 2,688,028 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  |  | 3.3% - 38.6% |  |  |  | 10.1% |  |  |  | Lower |
|  |  |  |  |  |  |  |  |  |  | Exit Multiple - EBITDA |  |  |  | 4.0x - 30.6x |  |  |  | 15.0x |  |  |  | Higher |
|  |  |  |  |  |  |  |  |  |  | Exit Capitalization Rate |  |  |  | 3.1% - 13.2% |  |  |  | 5.1% |  |  |  | Lower |
Debt Instruments |  |  | 15,564 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
Total Investments of Consolidated Blackstone Funds |  |  | 2,703,592 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate Treasury Investments |  |  | 8,576 |  |  |  | Transaction Price |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and Receivables |  |  | 95,532 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  |  | 8.8% - 14.0% |  |  |  | 10.3% |  |  |  | Lower |
Other Investments (b) |  |  | 78,367 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 2,886,067 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Freestanding Derivatives (c) |  | $ | 646,002 |  |  |  | Option Pricing Model |  |  |  | Volatility |  |  |  | 6.2% |  |  |  | n/a |  |  |  | Higher |
Other Liabilities (d) |  |  | 1,391 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Other |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 647,393 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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, 2023:
|  | Fair Value |  | Valuation Techniques |  | Unobservable Inputs |  | Ranges |  | Weighted- Average (a) |  | Impact to Valuation from an Increase in Input
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investments of Consolidated Blackstone Funds |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity Securities, Partnership and LLC Interests |  | $ | 2,653,246 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  |  | 3.3% - 38.0% |  |  |  | 9.7% |  |  |  | Lower |
|  |  |  |  |  |  |  |  |  |  | Exit Multiple - EBITDA |  |  |  | 4.0x - 30.6x |  |  |  | 15.0x |  |  |  | Higher |
|  |  |  |  |  |  |  |  |  |  | Exit Capitalization Rate |  |  |  | 3.1% - 12.8% |  |  |  | 5.1% |  |  |  | Lower |
Debt Instruments |  |  | 30,385 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
Total Investments of Consolidated Blackstone Funds |  |  | 2,683,631 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate Treasury Investments |  |  | 296,369 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  |  | 11.2% - 22.4% |  |  |  | 17.1% |  |  |  | Lower |
|  |  |  |  |  |  | Transaction Price |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and Receivables |  |  | 60,738 |  |  |  | Discounted Cash Flows |  |  |  | Discount Rate |  |  |  | 8.8% - 14.9% |  |  |  | 10.3% |  |  |  | Lower |
Other Investments (b) |  |  | 236,612 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Transaction Price |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 3,277,350 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Freestanding Derivatives (c) |  | $ | 563,986 |  |  |  | Option Pricing Model |  |  |  | Volatility |  |  |  | 6.3% |  |  |  | n/a |  |  |  | Higher |
Other Liabilities (d) |  |  | 1,651 |  |  |  | Third Party Pricing |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Other |  |  |  | n/a |  |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 565,637 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 March 31, 2024 and December 31, 2023, Other Investments includes Level III Freestanding Derivatives.
(c) |  | The volatility of the historical performance of the underlying reference entity is used to project the expected returns relevant for the fair value of the derivative.
(d) |  | As of March 31, 2024 and December 31, 2023, Other Liabilities includes Level III Contingent Consideration and Level III Corporate Treasury Commitments.
For the three months ended March 31, 2024, 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 Condensed Consolidated Statements of Operations.
|  | Level III Financial Assets at Fair Value Three Months Ended March 31,
|  | 2024 |  | 2023
|  | Investments |  |  |  |  |  |  |  | Investments |  |  |  |  |  |
|  | of |  | Loans |  | Other |  |  |  | of |  | Loans |  | Other |  |
|  | Consolidated |  | and |  | Investments |  |  |  | Consolidated |  | and |  | Investments |  |
|  | Funds |  | Receivables |  | (a) |  | Total |  | Funds |  | Receivables |  | (a) |  | Total
Balance, Beginning of Period |  | $ | 2,683,631 |  |  | $ | 60,738 |  |  | $ | 373,024 |  |  | $ | 3,117,393 |  |  | $ | 4,249,832 |  |  | $ | 315,039 |  |  | $ | 30,971 |  |  | $ | 4,595,842 |
Transfer Out Due to Deconsolidation |  |  | (14,237 | ) |  |  | — |  |  |  | — |  |  |  | (14,237 | ) |  |  | (3,837 | ) |  |  | — |  |  |  | — |  |  |  | (3,837 | )
Transfer Into Level III (b) |  |  | 3,434 |  |  |  | — |  |  |  | — |  |  |  | 3,434 |  |  |  | 13,873 |  |  |  | — |  |  |  | 898 |  |  |  | 14,771 |
Transfer Out of Level III (b) |  |  | (2,546 | ) |  |  | — |  |  |  | — |  |  |  | (2,546 | ) |  |  | (313 | ) |  |  | — |  |  |  | (2,726 | ) |  |  | (3,039 | )
Purchases |  |  | 133,116 |  |  |  | 149,639 |  |  |  | 5,675 |  |  |  | 288,430 |  |  |  | 299,948 |  |  |  | 55,070 |  |  |  | 49,404 |  |  |  | 404,422 |
Sales |  |  | (34,315 | ) |  |  | (111,167 | ) |  |  | (289,993 | ) |  |  | (435,475 | ) |  |  | (319,161 | ) |  |  | (86,725 | ) |  |  | (180 | ) |  |  | (406,066 | )
Issuances |  |  | — |  |  |  | 9,561 |  |  |  | — |  |  |  | 9,561 |  |  |  | — |  |  |  | 50,689 |  |  |  | — |  |  |  | 50,689 |
Settlements (c) |  |  | — |  |  |  | (14,110 | ) |  |  | (10,160 | ) |  |  | (24,270 | ) |  |  | — |  |  |  | (33,796 | ) |  |  | 528 |  |  |  | (33,268 | )
Changes in Gains (Losses) Includedin Earnings |  |  | (65,491 | ) |  |  | 871 |  |  |  | (1,404 | ) |  |  | (66,024 | ) |  |  | 98,167 |  |  |  | 7,011 |  |  |  | (4,291 | ) |  |  | 100,887 |
Balance, End of Period |  | $ | 2,703,592 |  |  | $ | 95,532 |  |  | $ | 77,142 |  |  | $ | 2,876,266 |  |  | $ | 4,338,509 |  |  | $ | 307,288 |  |  | $ | 74,604 |  |  | $ | 4,720,401 |
Changes in Unreali zed Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date |  | $ | (39,295 | ) |  | $ | (793 | ) |  | $ | (3,305 | ) |  | $ | (43,393 | ) |  | $ | 72,029 |  |  | $ | 1,737 |  |  | $ | 534 |  |  | $ | 74,300 |
|  | Level III Financial Liabilities at Fair Value Three Months Ended March 31,
|  | 2024 |  | 2023
|  | Freestanding |  | Other |  |  |  | Freestanding |  | Other |  |
|  | Derivatives |  | Liabilities |  | Total |  | Derivatives |  | Liabilities |  | Total
Balance, Beginning of Period |  | $ | 563,986 |  |  | $ | 1,651 |  |  | $ | 565,637 |  |  | $ | 48,581 |  |  | $ | 8,144 |  |  | $ | 56,725 |
Transfer In Due to Consolidation and Acquisition |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,300 |  |  |  | 2,300 |
Changes in Losses (Gains) Included in Earnings |  |  | 82,016 |  |  |  | (260 | ) |  |  | 81,756 |  |  |  | 154,838 |  |  |  | (2,226 | ) |  |  | 152,612 |
Balance, End of Period |  | $ | 646,002 |  |  | $ | 1,391 |  |  | $ | 647,393 |  |  | $ | 203,419 |  |  | $ | 8,218 |  |  | $ | 211,637 |
Changes in Unrealized Losses (Gains) Included in Earnings Related to Financial Liabilities Still Held at the Reporting Date |  | $ | 82,016 |  |  | $ | (260 | ) |  | $ | 81,756 |  |  | $ | 154,838 |  |  | $ | (2,226 | ) |  | $ | 152,612 |
(a) | Represents freestanding derivatives, 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.
(c) | For Freestanding Derivatives included within Other Investments, Settlements includes all ongoing contractual cash payments made or received over the life of the instrument.

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- 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 -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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