Derivative Financial Instruments

3 Months Ended

Mar. 31, 2024

6. Derivative Financial Instruments

Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its

non-U.S.

dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.

Freestanding Derivatives

Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.

The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts.


	March 31, 2024								December 31, 2023
	Assets				Liabilities				Assets				Liabilities
			Fair				Fair				Fair				Fair
	Notional		Value		Notional		Value		Notional		Value		Notional		Value
Freestanding Derivatives
Blackstone
Interest Rate Contracts	$	626,740	$	157,387	$	600,000	$	97,066	$	634,840	$	145,798	$	607,000	$	86,589
Foreign Currency Contracts		167,391		465		337,017		901		387,102		11,442		334,228		3,538
Credit Default Swaps		—		—		640		8		3,108		479		3,748		508
Total Return Swaps		39,956		5,812		—		—		63,158		13,171		—		—
Equity Options		—		—		1,131,872		646,002		—		—		1,110,490		563,986

		834,087		163,664		2,069,529		743,977		1,088,208		170,890		2,055,466		654,621

Investments of Consolidated Blackstone Funds
Interest Rate Contracts		839,931		26,800		—		—		855,683		19,189		—		—

		839,931		26,800		—		—		855,683		19,189		—		—

	$	1,674,018	$	190,464	$	2,069,529	$	743,977	$	1,943,891	$	190,079	$	2,055,466	$	654,621

The table below summarizes the impact to the Condensed Consolidated Statements of Operations from derivative financial instruments:


	Three Months Ended March 31,
	2024			2023
Freestanding Derivatives
Realized Gains (Losses)
Interest Rate Contracts	$	(614	)	$	336
Foreign Currency Contracts		5,525			5,590
Credit Default Swaps		75			(51	)
Total Return Swaps		8,320			4,652

		13,306			10,527


Net Change in Unrealized Gains (Losses)
Interest Rate Contracts		1,024			(2,120	)
Foreign Currency Contracts		(8,222	)		(3,183	)
Credit Default Swaps		(54	)		(228	)
Total Return Swaps		(5,519	)		(13	)
Equity Options		(82,016	)		(154,838	)

		(94,787	)		(160,382	)

	$	(81,481	)	$	(149,855	)

As of March 31, 2024 and December 31, 2023, Blackstone had not designated any derivatives as fair value, cash flow or net investment hedges.