The Blackstone Group Reports Fourth Quarter and Full Year 2009 Results

NEW YORK--The Blackstone Group L.P. :

Economic Net Income of $703 million for 2009 was up significantly from negative $(1.2) billion for 2008; Economic Net Income of $329 million for the fourth quarter of 2009, was up from a negative $(764) million for the fourth quarter of 2008.

Net Fee Related Earnings for 2009 were down slightly to $410 million from $428 million for the full year 2008; Net Fee Related Earnings of $139 million for the fourth quarter of 2009 were up 18% from $118 million for the fourth quarter of 2008.

Adjusted Cash Flows from Operations were $526 million for the full year 2009, up from $129 million in 2008; Adjusted Cash Flows from Operations were $217 million in the fourth quarter of 2009 versus a negative $(19) million for the fourth quarter of 2008.

GAAP Results Attributable to The Blackstone Group L.P. improved significantly in 2009 with a net loss of $(715) million, including net IPO and acquisition related charges of $875 million, compared to a net loss of $(1.2) billion in 2008.

Fee-Earning Assets Under Management totaled $96.1 billion at December 31, 2009, up from $91.0 billion at December 31, 2008.

Blackstone declares a quarterly priority distribution of $0.30 per common unit.

The Blackstone Group L.P. today reported its 2009 results.

For the full year 2009, Total Segment Revenues, on an ENI basis, were $1.8 billion, up significantly from a negative $(442.1) million for the full year 2008. For the fourth quarter of 2009, Total Segment Revenues were $738.4 million, up $1.4 billion from a negative $(621.4) million for the fourth quarter of 2008. The year-over-year change was driven by net appreciation of the underlying portfolio investments in the Private Equity and Credit and Marketable Alternatives segments, as well as stabilization in the fair value of the Real Estate segment’s underlying portfolio investments. These increases were partially offset by decreased fees earned in the Financial Advisory segment.

Total Segment Expenses were $1.1 billion for the full year 2009, an increase from $887.9 million for the full year 2008. Compensation and Benefits was $768.8 million for the full year 2009, an increase from $568.7 million for the full year 2008, reflecting a reduction in the reversals of performance fee related compensation accruals. Total Segment Expenses for the quarter totaled $372.6 million, up from $205.7 million for the fourth quarter of 2008. The largest component of segment expenses, Total Segment Compensation and Benefits, was $290.1 million for the fourth quarter of 2009, up from $107.6 million for the fourth quarter of 2008. The change from 2008 was driven by an increase in performance fee related compensation in the Private Equity, Credit and Marketable Alternatives and Real Estate segments. Base compensation was $216.4 million for the fourth quarter of 2009, up from $189.8 million for the fourth quarter of 2008.

GAAP results for the year ended December 31, 2009 included Revenues of $1.8 billion, compared to a negative $(349.4) million for the full year 2008, and Net Loss Attributable to The Blackstone Group L.P. of $(715.3) million, compared to a net loss of $(1.2) billion for the full year 2008. GAAP results for the fourth quarter of 2009 included Revenues of $725.3 million, up from a negative $(611.3) million for the fourth quarter of 2008. Net Loss Attributable to The Blackstone Group L.P. was $(143.3) million, compared to a net loss of $(415.2) million for the fourth quarter of 2008.

World equity and debt markets continued to improve in the second half of 2009 in anticipation of sustained economic recovery. The United States and several other developed economies returned to growth, and emerging economies grew more sharply. Despite tangible evidence of economic recovery, U.S. unemployment remains high and consumer credit trends remain weak.

Commercial real estate trends in the U.S. and Europe showed continued signs of stabilization. For office properties, vacancy rates appear to have stabilized, with some markets showing signs of decreasing vacancies. In hospitality, demand appears to have bottomed as well, although pricing remains pressured. RevPAR (Revenue Per Available Room), an important hospitality industry metric, continued to decline, but that decline clearly moderated in the fourth quarter of 2009.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “It has been about 17 months since the collapse of Lehman Brothers and the full onset of the global financial crisis. Equity and debt markets globally have continued to heal from their lows about a year ago although there has been some recent turbulence in January and February, most companies have reduced expenses and inventory levels, the cost of borrowing has declined and the availability of credit is increasing selectively. We believe the worst is behind us, although a recovery in Western economies could be gradual and uneven. We see many opportunities to deploy our substantial available capital across each of our asset management businesses with attractive potential risk-return for our fund investors.”

The table below details Blackstone’s Economic Net Income, Net Fee Related Earnings from Operations, Adjusted Cash Flows from Operations and Fee-Earning Assets Under Management as of, and for, the fourth quarters 2009 and 2008, and for the full years 2009 and 2008. Economic Net Income, Total Segments includes unrealized gains (losses) and the direct compensation impact related to those gains/losses, but excludes IPO and acquisition-related charges.

		Quarter Ended December 31,								Variance							Year Ended December 31,								Variance
		2009				2008				$				%			2009				2008				$				%
		(Dollars in Thousands, Except per Unit Amounts)
Economic Net Income, Total Segments		$	365,845			$	(827,110	)		$	1,192,955			144	%		$	723,763	)		$	(1,330,018	)		$	2,053,781			154	%
Provision (Benefit) for Income Taxes (a)			36,464				(63,278	)			99,742			158	%			20,628				(162,769	)			183,397			113	%
Economic Net Income, After Taxes		$	329,381			$	(763,832	)		$	1,093,213			143	%		$	703,135			$	(1,167,249	)		$	1,870,384			160	%
Economic Net Income, After Taxes per Adjusted Unit (b)		$	0.29			$	(0.68	)		$	0.97						$	0.63			$	(1.03	)		$	1.66
Net Fee Related Earnings from Operations		$	139,163			$	117,854			$	21,309			18	%		$	410,410			$	427,668			$	(17,258	)		-4	%
Adjusted Cash Flows from Operations		$	217,224			$	(19,321	)		$	236,545						$	526,238			$	128,801			$	397,437
Fee-Earning Assets Under Management:
Private Equity		$	24,521,394			$	25,509,163			$	(987,769	)		-4	%
Real Estate			23,708,057				22,970,438				737,619			3	%
Credit and Marketable Alternatives			47,867,546				42,561,456				5,306,090			12	%
Total Fee-Earning Assets Under Management		$	96,096,997			$	91,041,057			$	5,055,940			6	%

(a)	Represents the implied provision (benefit) for income taxes calculated using a similar methodology applied in calculating the tax provision for The Blackstone Group L.P.
(b)	Adjusted Units represents the weighted-average fully diluted unit count for Economic Net Income purposes. A reconciliation of this item to the equivalent GAAP measure is presented in Exhibit 5 to this release.

SEGMENT REVIEW

Private Equity

Full Year

Private Equity had full year revenues of $775.2 million, compared with revenues of a negative $(286.2) million for the full year 2008. The principal driver of the year-over-year change was an increase in Performance Fees and Allocations and Investment Income as a result of net appreciation in the fair value of both publicly traded and privately held portfolio investments. The combined impact of improved performance of the underlying portfolio companies and more favorable global public markets drove the improved results. During the year, two-thirds of the portfolio companies in private equity experienced EBITDA growth and 40% had revenue growth. The net internal rate of return (“IRR”) for the segment was 9% for 2009. At December 31, 2009, the unrealized value and cumulative realized proceeds, before carried interest, fees and expenses, of our contributed Private Equity funds represented 1.3 times investors’ original investments.

Results were also positively impacted by increased transaction activity, particularly in the second half of the year, including several material realizations such as Stiefel Laboratories, Inc. and Orangina Schweppes, SAS, as well as new investments in SeaWorld Parks & Entertainment and the Pinnacle Food Group’s acquisition of Bird’s Eye Foods Inc. The funds distributed to limited partners realized proceeds of $1.6 billion for 2009, which represented 1.8 times investors’ original investment in the companies that were sold. In addition, Blackstone invested Limited Partner Capital of $1.5 billion and had $1.3 billion of Limited Partner Capital committed to deals by the segment’s funds that had not yet closed as of December 31, 2009. This compared to distributed proceeds of $0.5 billion and invested capital of $3.8 billion in 2008.

Net Fee Related Earnings from Operations were $97.8 million for the full year 2009, up from $81.9 million for the full year 2008. The change from 2008 primarily reflected an increase in transaction fees. Economic Net Income was $490.4 million for the full year 2009, up from a negative $(392.5) million for the full year 2008.

Compensation and Benefits expense increased to $202.3 million from $16.2 million for the full year 2008. The change from 2008 was primarily due to an increase in performance fee related compensation, although Base Compensation levels also increased. Other Operating Expenses of $82.5 million were down from $90.1 million for the full year 2008, reflecting Blackstone’s ongoing focus on expense control.

Fee-Earning Assets Under Management were down slightly at $24.5 billion compared with $25.5 billion for 2008 reflecting the impact of market depreciation on certain assets on which fees are no longer charged and several realizations.

Fourth Quarter

Private Equity had revenues of $281.6 million for the fourth quarter of 2009, compared with revenues of a negative $(193.6) million for the fourth quarter of 2008. The change from 2008 was driven principally by an increase in Performance Fees and Allocations and Investment Income which included $62.4 million in realized performance fees and investment income. The net return for the segment was 6% in the fourth quarter of 2009 versus a negative (19)% in the fourth quarter of 2008.

Net Fee Related Earnings from Operations were $32.9 million for the fourth quarter of 2009, up from $31.6 million for the fourth quarter of 2008. The change from 2008 primarily reflected an increase in fee related revenues as a result of increased transaction activity. Economic Net Income was $177.8 million for the fourth quarter of 2009, up from a negative $(239.1) million for the fourth quarter of 2008.

Compensation and Benefits expense increased to $83.3 million from $22.5 million for the fourth quarter of 2008. The change from 2008 was primarily due to an increase in Performance Fee Related Compensation and Base Compensation. Other Operating Expenses of $20.5 million were down from $23.1 million for the fourth quarter of 2008, reflecting Blackstone’s ongoing focus on expense control.

Fee-Earning Assets Under Management were down slightly at $24.5 billion compared with $25.5 billion for the fourth quarter of 2008.

Limited Partner Capital Invested totaled $898.5 million for the fourth quarter of 2009, including new and follow-on investments, a decrease from $1.1 billion invested for the fourth quarter of 2008.

Real Estate

Full Year

Real Estate had revenues of a negative $(13.6) million, compared with revenues of a negative $(718.0) million for the full year 2008. The principal drivers of the year-over-year change was a reduction in the reversal of performance fees and a stabilization in the fair value of the segment’s underlying portfolio investments in the office and hospitality sectors during the second half of 2009. The performance fees accrued in previous years have now been fully reversed in the two largest funds, BREP V and BREP VI. The second half of 2009 saw portfolio values stabilize and a return of deal activity at cyclically attractive levels. Real Estate invested $884.2 million for the full year 2009 with another $256.6 million committed but not yet invested, or under letter of intent, as of December 31, 2009. The net IRR for our Real Estate carry funds was a negative (35)% for 2009 compared to a negative (38)% in 2008, while the Real Estate debt investment hedge funds was 21% for 2009 compared to a negative (9)% in 2008. Despite significant unrealized markdowns over the last year and a half, the December 31, 2009 unrealized value and cumulative realized proceeds, before carried interest, fees and expenses, of our contributed Real Estate carry funds represented 0.9 times investors’ original investments.

Net Fee Related Earnings from Operations were $135.2 million in the full year 2009, up from $119.6 million for the full year 2008 due to the full-year impact of the European fund launched in 2008. Economic Net Income was negative $(117.5) million for the full year 2009, an improvement from negative $(850.6) million for the full year 2008.

Compensation and Benefits were $47.6 million compared to $76.8 million for the full year 2008. Other Operating Expenses of $56.3 million for the full year 2009 remained relatively unchanged from the full year 2008.

Fee-Earning Assets Under Management were up $737.6 million, or 3%, to $23.7 billion compared with $23.0 billion for 2008.

Fourth Quarter

Real Estate had revenues of $117.7 million for the fourth quarter of 2009, compared with negative revenues of $(477.8) million for the fourth quarter of 2008. The change from 2008 was primarily due to an improvement in Performance Fees and Allocations and Investment Income, driven by the stabilization in the fair value of the segment’s underlying portfolio investments in the office and hospitality sectors during the second half of 2009 compared to the fourth quarter of 2008. The net return for our Real Estate carry funds was a negative (0.5)% for the fourth quarter of 2009 compared to a negative (29)% in the fourth quarter of 2008, while the Real Estate debt investment hedge funds was 4% for the fourth quarter of 2009 compared to negative (9)% in the fourth quarter of 2008.

Net Fee Related Earnings from Operations were $38.4 million in the fourth quarter of 2009, down from $43.8 million for the fourth quarter of 2008. Economic Net Income was $51.2 million for the fourth quarter of 2009 compared to a negative $(478.0) million for the fourth quarter of 2008.

Compensation and Benefits were $49.3 million compared to a negative $(12.1) million for the fourth quarter of 2008. The change from 2008 was due to a decrease in reversals of prior period carried interest allocations in the fourth quarter of 2009. Other Operating Expenses of $17.3 million increased from $12.2 million for the fourth quarter of 2008.

Fee-Earning Assets Under Management of $23.7 billion remained relatively unchanged from the third quarter of 2009 and were up 3% from the fourth quarter of 2008.

Credit and Marketable Alternatives (CAMA)

Full Year

CAMA had revenues of $632.3 million for the full year 2009 compared with revenues of $151.5 million for the full year 2008. The increase was primarily driven by improved returns on Blackstone’s investment in its funds of hedge funds and its credit-oriented funds during the full year 2009 compared to the full year 2008 and by an increase in Performance Fees and Allocations in both businesses.

The funds of hedge funds posted a composite net return of 16% for the full year 2009 and approximately 40% of the assets eligible to earn incentive fees were above their applicable high water marks as of December 31, 2009. The credit-oriented hedge funds posted a composite net return of 23% for 2009, a record year, and approximately three fourths of the assets eligible to earn incentive fees were above their applicable high water marks as of December 31, 2009. CAMA’s credit-oriented draw-down funds posted a composite net return of 61% for 2009.

Net Fee Related Earnings from Operations were $99.6 million for the full year 2009, a decrease from $130.9 million for the full year 2008 which reflected lower asset values and the spinout of the single manager hedge funds at the end of 2008. Economic Net Income was $265.2 million for the full year 2009 compared to a negative $(195.5) million for the full year 2008.

Compensation and Benefits were $286.5 million, up from $241.0 million for the full year 2008. The increase from the full year 2008 was principally driven by performance fee related compensation due to positive returns on certain of Blackstone’s credit-related funds, partially offset by a decline in base compensation. Other Operating Expenses of $80.7 million were down from $106.0 million for the full year 2008, reflecting Blackstone’s ongoing focus on expense control.

Fee-Earning Assets Under Management in 2009 totaled $47.9 billion compared with $42.6 billion for 2008. The increase from 2008 was principally due to market appreciation in the funds of hedge funds, credit platform and closed-end mutual funds in addition to net inflows across the segment, offset by the decrease from discontinued funds.

Limited Partner Capital Invested in certain credit drawdown funds totaled $721.4 million for the full year 2009, down from $1.8 billion for the full year 2008.

Fourth Quarter

CAMA had revenues of $213.3 million, compared with a negative $(55.7) million for the fourth quarter of 2008. The change from 2008 was due primarily to improved returns on the segment’s fund of hedge funds and credit-oriented funds, resulting in positive performance fees and allocations and investment income in both businesses.

Net Fee Related Earnings from Operations were $36.0 million for the fourth quarter of 2009, an increase from $21.7 million for the fourth quarter of 2008 reflecting general expense reductions. Economic Net Income was $102.8 million for the fourth quarter of 2009 compared to a negative $(132.5) million for the fourth quarter of 2008.

Compensation and Benefits were $88.1 million, up from $40.3 million in the fourth quarter of 2008. The increase from the fourth quarter of 2008 was principally driven by performance fee related compensation due to positive returns on certain of Blackstone’s credit-related funds, partially offset by a decline in base compensation. Other Operating Expenses of $22.4 million were down from $36.5 million for the fourth quarter of 2008, reflecting Blackstone’s ongoing focus on expense control.

Fee-Earning Assets Under Management in the fourth quarter of 2009 totaled $47.9 billion up from $42.6 billion for the fourth quarter of 2008. The increase from 2008 was principally due to market appreciation in the funds of hedge funds, credit platform funds and closed-end mutual funds.

Limited Partner Capital Invested in certain carry credit-oriented funds totaled $313.6 million for the fourth quarter of 2009, down from $333.8 million for the fourth quarter of 2008.

Financial Advisory

Full Year

Revenues were $397.6 million for the year ended December 31, 2009, a decrease of $13.0 million, or 3%, compared to $410.6 million for the year ended December 31, 2008. The restructuring and reorganization advisory services business generated record fees of $188.0 million, a 66% increase from 2008, as continued credit market turmoil and low levels of available liquidity led to increased debt defaults, debt restructurings and bankruptcies. Additionally, fees earned from the corporate and mergers and acquisitions advisory services business increased $10.1 million, or 7%, to a record $164.0 million as clients increasingly looked to us for independent advice in complicated transactions. These increases were offset by a decrease of $91.6 million in fees generated from the fund placement business compared to 2008 as that business continued to face challenges in the fund-raising environment but did see improvement in the fourth quarter.

Net Fee Related Earnings from Operations were $77.8 million for the full year 2009, a decrease from $95.2 million for the full year 2008. The primary catalyst for the decrease from 2008 was a decrease in fees generated from the fund placement business coupled with an increase in bad debt expense from the corporate and mergers and acquisitions advisory services business. Non-compensation expenses for the segment, excluding the impact of these one-time items, were essentially flat. Economic Net Income was $85.7 million for the full year 2009 compared to $108.5 million for the full year 2008.

Fourth Quarter

Revenues were $125.7 million for the fourth quarter of 2009, an increase from $105.8 million for the fourth quarter of 2008. The increase in segment revenues was primarily driven by an increase in fees generated by continued strength in Blackstone’s restructuring and reorganization advisory services business as well as a return to more normalized activity levels in the fund placement business.

Net Fee Related Earnings from Operations were $31.8 million for the fourth quarter of 2009, an increase from $20.8 million for the fourth quarter of 2008. The primary catalyst for the increase from 2008 was higher advisory fees, partially offset by an increase in Compensation and Benefits as a portion of compensation is directly related to the profitability of each of the advisory services businesses. Economic Net Income was $34.0 million for the fourth quarter of 2009 compared to $22.5 million for the fourth quarter of 2008.

CAPITAL AND LIQUIDITY

For Economic Net Income purposes, the weighted-average fully diluted unit count (the “Adjusted Units”) for the fourth quarter and full year 2009 was 1,119.9 million units and 1,123.8 million units, respectively. The weighted-average fully diluted unit count for the fourth quarter and full year 2008 was 1,129.2 million units and 1,129.0 million units, respectively.

The total number of units used in calculating cash distributions was 1,095.8 million units for the full year 2009 and 1,100.2 million units for the full year 2008.

As of December 31, 2009, Blackstone had $952.1 million in cash, $626.2 million invested in cash management strategies which included high grade liquid debt strategies and $495.2 million invested in liquid Blackstone Funds, against $652.0 million in outstanding borrowings. Blackstone continues to maintain its $850 million revolving credit-facility, against which it had no outstanding borrowings as of December 31, 2009.

DISTRIBUTION

The Blackstone Group L.P. has declared a quarterly distribution of $0.30 per common unit to record holders of common units at the close of business on March 15, 2010. This distribution will be paid on March 31, 2010.

As previously disclosed, public common unitholders were entitled to a priority distribution of up to $1.20 per common unit per year ahead of Blackstone personnel and others regarding distributions made in respect of fiscal periods from July 1, 2007 through December 31, 2009. On December 31, 2009, that distribution priority ended and therefore all future distributions after the distribution referred to in the preceding paragraph will be made on the same basis among all holders of Blackstone Holdings Partnership units (held by Blackstone personnel and others) and all holders of Blackstone common units (held by public unitholders and others). Had the distribution priority not been in effect in 2009 so that 2009 cash distributions were made to all unitholders on the same basis, the distributions to common unitholders in respect of fiscal 2009 would have been $0.48 per unit instead of $1.20 per unit.

For distributions related to fiscal 2010 and thereafter, Blackstone’s current intention is to distribute to its common unitholders substantially all of The Blackstone Group L.P.’s net after-tax share of its annual Distributable Earnings in excess of amounts determined by its general partner to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future distributions to its unitholders for any ensuing quarter. Because Blackstone will not know what its Distributable Earnings will be for any fiscal year until the end of such year, Blackstone expects that its first three quarterly distributions in respect of any given year will be based on its anticipated annualized Net Fee Related Earnings. As such, the distributions for the first three quarters will likely be smaller than the final quarterly distribution in respect of such year. In the fourth quarter Blackstone will distribute the remaining Distributable Earnings for the year, which is expected to also include realized Performance Fees and Allocations net of related compensation and realized net investment income.

In most years the aggregate amounts of Blackstone’s distributions to unitholders will not equal its Distributable Earnings for that year. Distributable Earnings will only be a starting point for the determination of the amount to be distributed to unitholders because as noted above, in determining the amount to be distributed Blackstone will subtract from Distributable Earnings any amounts determined by its general partner to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future distributions to its unitholders for any ensuing quarter.

All of the foregoing is subject to the qualification that the declaration and payment of any distributions are at the sole discretion of Blackstone’s general partner and the general partner may change its distribution policy at any time.

Because the wholly-owned subsidiaries of The Blackstone Group L.P. must pay taxes and make payments under the tax receivable agreements described in Blackstone’s Annual Report on Form 10-K, the amounts ultimately distributed by The Blackstone Group L.P. to its common unitholders in respect of fiscal 2010 and subsequent years are expected to be different, on a per unit basis, than the amounts distributed by the Blackstone Holdings partnerships to the Blackstone personnel and others who are limited partners of the Blackstone Holdings partnerships in respect of their Blackstone Holdings partnership units.

# # #

Blackstone will host a conference call on February 25, 2010 at 11:00 a.m. ET to discuss 2009 results. The conference call can be accessed by dialing (888) 713-4213 (U.S. domestic) or +1 (617) 213-4865 (international) pass code 59443416. Additionally, the conference call will be broadcast live over the internet and can be accessed by all interested parties through the Investor Relations section of The Blackstone Group’s website http://ir.blackstone.com. For those unable to listen to the live broadcast, a replay will be available on Blackstone’s website or by dialing (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international) conference ID number 96780108, beginning approximately two hours after the event.

About The Blackstone Group

Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2009, as such factors may be updated from time to time in its periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the prospectus. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This release does not constitute an offer of any Blackstone Fund.

THE BLACKSTONE GROUP L.P. Exhibit 1a. Consolidated Statements of Operations (Dollars in Thousands, Except Per Unit Data)
					Year Ended December 31,
					2009				2008
Revenues
Management and Advisory Fees					$	1,482,226			$	1,476,357
Performance Fees and Allocations
Realized						70,492				38,941
Unrealized						150,598				(1,286,261	)
Total Performance Fees and Allocations						221,090				(1,247,320	)
Investment Income (Loss)
Realized						44,320				(16,425	)
Unrealized						(3,716	)			(606,452	)
Total Investment Income (Loss) (a)						40,604				(622,877	)
Interest and Dividend Revenue						22,680				30,879
Other						7,099				13,600
Total Revenues						1,773,699				(349,361	)
Expenses
Compensation and Benefits
Base Compensation						3,778,686				4,062,238
Performance Fee Related
Realized						25,102				4,997
Unrealized						(26,182	)			(207,448	)
Total Compensation and Benefits (b)						3,777,606				3,859,787
General, Administrative and Other (c)						443,573				440,776
Interest Expense (d)						13,384				23,008
Fund Expenses						7,296				63,031
Total Expenses						4,241,859				4,386,602
Other Income (Loss)
Net Gains (Losses) from Fund Investment Activities						176,694				(872,336	)
Income (Loss) Before Provision (Benefit) for Taxes (e)						(2,291,466	)			(5,608,299	)
Provision (Benefit) for Taxes						99,230				(14,145	)
Net Income (Loss)						(2,390,696	)			(5,594,154	)
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities						131,097				(632,495	)
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities						(14,328	)			(159,828	)
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings						(1,792,174	)			(3,638,799	)
Net Income (Loss) Attributable to The Blackstone Group L.P. (f)					$	(715,291	)		$	(1,163,032	)
Net Loss per Common Unit, Basic and Diluted
Common Units Entitled to Priority Distributions					$	(2.46	)		$	(4.32	)
Common Units Not Entitled to Priority Distributions					$	(3.71	)		$	(3.06	)
____________________
Net IPO and acquisition-related charges included above were:
(a)	Investment Income (Loss)				$	38,168			$	(36,575	)
(b)	Total Compensation and Benefits				$	3,777,606			$	3,859,787
	Less: Compensation and Benefits - IPO and acquisition-related				$	3,008,923			$	3,291,078
	Compensation - non-IPO and acquisition-related (*)				$	768,683			$	568,709
(c)	General, Administrative and Other				$	157,689			$	154,237
(d)	Interest Expense				$	3,553			$	4,066
(e)	Total IPO and acquisition-related charges				$	3,131,997			$	3,485,956
(f)	Total IPO and acquisition-related charges attributable to The Blackstone Group L.P., net of tax				$	874,865			$	845,591
____________________
(*)	Principally comprised of base pay, bonus, net carried interest allocations, benefits and non-IPO and acquisition-related equity-based compensation.

THE BLACKSTONE GROUP L.P. Exhibit 1b. Consolidated Statements of Operations (Dollars in Thousands, Except Per Unit Data)
					Quarter Ended December 31,
					2009				2008
Revenues
Management and Advisory Fees					$	432,620			$	381,416
Performance Fees and Allocations
Realized						68,488				14,892
Unrealized						141,666				(643,727	)
Total Performance Fees and Allocations						210,154				(628,835	)
Investment Income (Loss)
Realized						36,764				(50,428	)
Unrealized						32,433				(334,372	)
Total Investment Income (Loss) (a)						69,197				(384,800	)
Interest and Dividend Revenue						11,556				20,246
Other						1,819				691
Total Revenues						725,346				(611,282	)
Expenses
Compensation and Benefits
Base Compensation						973,119				944,226
Performance Fee Related
Realized						24,088				7,732
Unrealized						49,673				(89,647	)
Total Compensation and Benefits (b)						1,046,880				862,311
General, Administrative and Other (c)						115,056				116,196
Interest Expense (d)						6,640				8,682
Fund Expenses						1,425				4,844
Total Expenses						1,170,001				992,033
Other Income
Net Gains (Losses) from Fund Investment Activities						79,341				(295,623	)
Income (Loss) Before Provision (Benefit) for Taxes (e)						(365,314	)			(1,898,938	)
Provision (Benefit) for Taxes						18,063				24,087
Net Income (Loss)						(383,377	)			(1,923,025	)
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities						40,581				(138,289	)
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities						19,122				(114,646	)
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings						(299,830	)			(1,254,913	)
Net Income (Loss) Attributable to The Blackstone Group L.P. (f)					$	(143,250	)		$	(415,177	)
Net Loss per Common Unit, Basic and Diluted
Common Units Entitled to Priority Distributions					$	(0.45	)		$	(1.51	)
Common Units Not Entitled to Priority Distributions					$	(0.76	)		$	(1.51	)
____________________
Net IPO and acquisition-related charges included above were:
(a)	Investment Income (Loss)				$	5,439			$	(35,066	)
(b)	Total Compensation and Benefits				$	1,046,880			$	862,311
	Less: Compensation and Benefits - IPO and acquisition-related				$	756,827			$	754,737
	Compensation - non-IPO and acquisition-related (*)				$	290,053			$	107,574
(c)	General, Administrative and Other				$	38,559			$	28,225
(d)	Interest Expense				$	915			$	864
(e)	Total IPO and acquisition-related charges				$	790,862			$	818,892
(f)	Total IPO and acquisition-related charges attributable to The Blackstone Group L.P., net of tax				$	218,195			$	191,351
____________________
(*)	Principally comprised of base pay, bonus, net carried interest allocations, benefits and non-IPO and acquisition-related equity-based compensation.

THE BLACKSTONE GROUP L.P. Exhibit 2a. Consolidated Statements of Financial Condition (Dollars in Thousands)
				December 31, 2009				December 31, 2008
Assets
Cash and Cash Equivalents				$	952,096			$	503,737
Cash Held by Blackstone Funds and Other					86,084				907,324
Investments					3,565,483				2,830,942
Accounts Receivable					306,307				312,067
Due from Affiliates					759,907				1,088,304
Intangible Assets, Net					919,477				1,077,526
Goodwill					1,703,602				1,703,602
Other Assets					172,556				219,977
Deferred Tax Assets					943,512				845,578
Total Assets				$	9,409,024			$	9,489,057
Liabilities and Partners' Capital
Loans Payable				$	657,623			$	387,000
Due to Affiliates					1,410,066				1,285,577
Accrued Compensation and Benefits					488,945				413,459
Accounts Payable, Accrued Expenses and Other Liabilities					308,857				1,284,576
Total Liabilities					2,865,491				3,370,612
Commitments and Contingencies
Redeemable Non-Controlling Interests in Consolidated Entities					526,311				362,462
Partners' Capital
Partners' Capital					3,376,707				3,509,448
Accumulated Other Comprehensive Income (Loss)					2,420				(291	)
Non-Controlling Interests in Consolidated Entities					540,283				425,067
Non-Controlling Interests in Blackstone Holdings					2,097,812				1,821,759
Total Partners' Capital					6,017,222				5,755,983
Total Liabilities and Partners' Capital				$	9,409,024			$	9,489,057

THE BLACKSTONE GROUP L.P. Exhibit 2b. Consolidating Statements of Financial Condition (Dollars in Thousands)
				December 31, 2009
				Consolidated Operating Partnerships				Consolidated Blackstone Funds			Reclasses and Eliminations				Consolidated
Assets
Cash and Cash Equivalents				$	952,096			$	-		$	-			$	952,096
Cash Held by Blackstone Funds and Other					-				86,084			-				86,084
Investments					2,772,489				999,792			(206,798	)			3,565,483
Accounts Receivable					305,846				461			-				306,307
Due from Affiliates					735,471				64,384			(39,948	)			759,907
Intangible Assets, Net					919,477				-			-				919,477
Goodwill					1,703,602				-			-				1,703,602
Other Assets					171,463				1,141			(48	)			172,556
Deferred Tax Assets					943,512				-			-				943,512
Total Assets				$	8,503,956			$	1,151,862		$	(246,794	)		$	9,409,024
Liabilities and Partners' Capital
Loans Payable				$	651,993			$	5,630		$	-			$	657,623
Due to Affiliates					1,362,781				65,776			(18,491	)			1,410,066
Accrued Compensation and Benefits					486,951				1,994			-				488,945
Accounts Payable, Accrued Expenses and Other Liabilities					235,673				94,688			(21,504	)			308,857
Total Liabilities					2,737,398				168,088			(39,995	)			2,865,491
Redeemable Non-Controlling Interests in Consolidated Entities					-				-			526,311				526,311
Partners' Capital
Partners' Capital					3,376,707				733,110			(733,110	)			3,376,707
Accumulated Other Comprehensive Income					2,420				-			-				2,420
Non-Controlling Interests in Consolidated Entities					289,619				250,664			-				540,283
Non-Controlling Interests in Blackstone Holdings					2,097,812				-			-				2,097,812
Total Partners' Capital					5,766,558				983,774			(733,110	)			6,017,222
Total Liabilities and Partners' Capital				$	8,503,956			$	1,151,862		$	(246,794	)		$	9,409,024
				December 31, 2008
				Consolidated Operating Partnerships				Consolidated Blackstone Funds			Reclasses and Eliminations				Consolidated
Assets
Cash and Cash Equivalents				$	503,737			$	-		$	-			$	503,737
Cash Held by Blackstone Funds and Other					57,536				849,788			-				907,324
Investments					1,650,071				1,385,132			(204,261	)			2,830,942
Accounts Receivable					309,201				2,866			-				312,067
Due from Affiliates					1,284,232				216			(196,144	)			1,088,304
Intangible Assets, Net					1,077,526				-			-				1,077,526
Goodwill					1,703,602				-			-				1,703,602
Other Assets					176,030				48,728			(4,781	)			219,977
Deferred Tax Assets					845,578				-			-				845,578
Total Assets				$	7,607,513			$	2,286,730		$	(405,186	)		$	9,489,057
Liabilities and Partners' Capital
Loans Payable				$	387,000			$	-		$	-			$	387,000
Due to Affiliates					1,064,980				362,526			(141,929	)			1,285,577
Accrued Compensation and Benefits					410,593				2,866			-				413,459
Accounts Payable, Accrued Expenses and Other Liabilities					282,360				1,123,373			(121,157	)			1,284,576
Total Liabilities					2,144,933				1,488,765			(263,086	)			3,370,612
Redeemable Non-Controlling Interests in Consolidated Entities					-				-			362,462				362,462
Partners' Capital
Partners' Capital					3,509,448				504,562			(504,562	)			3,509,448
Accumulated Other Comprehensive Income (Loss)					(291	)			-			-				(291	)
Non-Controlling Interests in Consolidated Entities					131,664				293,403			-				425,067
Non-Controlling Interests in Blackstone Holdings					1,821,759				-			-				1,821,759
Total Partners' Capital					5,462,580				797,965			(504,562	)			5,755,983
Total Liabilities and Partners' Capital				$	7,607,513			$	2,286,730		$	(405,186	)		$	9,489,057

THE BLACKSTONE GROUP L.P. Exhibit 3. Condensed Consolidated Statements of Cash Flows (Dollars in Thousands)
		Three Months Ended																				Three Months Ended
		March 31, 2008				June 30, 2008				September 30, 2008				December 31, 2008				Full Year 2008				March 31, 2009				June 30, 2009				September 30, 2009				December 31, 2009				Full Year 2009
Operating Activities
Net Income (Loss)		$	(1,254,157	)		$	(594,627	)		$	(1,822,345	)		$	(1,923,025	)		$	(5,594,154	)		$	(929,938	)		$	(597,871	)		$	(479,510	)		$	(383,377	)		$	(2,390,696	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:
Blackstone Funds Related:
Non-Controlling Interests in Income (Loss) of Consolidated Entities			209,980				(121,292	)			389,856				428,881				907,425				13,235				(98,161	)			(134,344	)			(48,163	)			(267,433	)
Net Realized (Gains) Losses on Investments			256				(118,555	)			204,373				78,652				164,726				53,190				38,369				48,818				(5,134	)			135,243
Changes in Unrealized (Gains) Losses on Investments Allocable to Blackstone Group			62,823				(7,770	)			182,138				386,870				624,061				78,218				14,758				(51,983	)			(25,015	)			15,978
Unrealized Depreciation on Hedge Activities			-				-				-				-				-				-				-				8,799				(15,774	)			(6,975	)
Non-Cash Performance Fees and Allocations			76,279				37,343				393,282				579,154				1,086,058				101,770				(89,499	)			(134,248	)			(147,175	)			(269,152	)
Equity-Based Compensation Expense			914,671				805,597				774,431				807,918				3,302,617				738,045				762,521				738,404				809,138				3,048,108
Intangible Amortization			33,528				40,685				39,512				39,512				153,237				39,513				39,511				39,513				39,511				158,048
Other Non-Cash Amounts Included in Net Income			3,845				5,102				4,470				6,271				19,688				6,006				6,026				5,945				7,266				25,243
Cash Flows Due to Changes in Operating Assets and Liabilities			316,363				112,039				(96,073	)			424,755				757,084				182,718				21,332				64,241				(198,091	)			70,200
Investments Purchased			-				-				-				-				-				-				-				(1,030,000	)			476,712				(553,288	)
Blackstone Funds Related Investment Activity			(248,434	)			(2,697	)			351,860				368,964				469,693				273,125				39,718				137,307				(3,917	)			446,233
Net Cash Provided by (Used in) Operating Activities			115,154				155,825				421,504				1,197,952				1,890,435				555,882				136,704				(787,058	)			505,981				411,509
Investing Activities
Net Cash Provided by (Used in) Investing Activities			(388,918	)			20,210				(9,731	)			(3,241	)			(381,680	)			(2,044	)			(9,450	)			(5,590	)			(1,742	)			(18,826	)
Financing Activities
Net Cash Provided by (Used in) Financing Activities			77,714				(630,954	)			505,521				(1,825,928	)			(1,873,647	)			(281,272	)			(118,978	)			494,539				(38,613	)			55,676
Effect of Exchange Rate Changes on Cash and Cash Equivalents			90				(90	)			-				-				-				-				-				-				-				-
Net Increase (Decrease) in Cash and Cash Equivalents			(195,960	)			(455,009	)			917,294				(631,217	)			(364,892	)			272,566				8,276				(298,109	)			465,626				448,359
Cash and Cash Equivalents, Beginning of Period			868,629				672,669				217,660				1,134,954				868,629				503,737				776,303				784,579				486,470				503,737
Cash and Cash Equivalents, End of Period		$	672,669			$	217,660			$	1,134,954			$	503,737			$	503,737			$	776,303			$	784,579			$	486,470			$	952,096			$	952,096

THE BLACKSTONE GROUP L.P. Exhibit 4a. Economic Net Income and Net Fee Related Earnings from Operations (Dollars in Thousands)
The tables below detail Blackstone’s Economic Net Income and Net Fee Related Earnings from Operations. Net Fee Related Earnings from Operations is a supplemental measure of after tax performance used to highlight earnings from operations excluding the income from and related profit sharing expenses of Blackstone’s performance fees and allocations and investment income, except for interest income. The reconciliation of Economic Net Income to Net Fee Related Earnings from Operations is presented in Exhibit 4b to this release.
		Three Months Ended																				Three Months Ended
		March 31, 2008				June 30, 2008				September 30, 2008				December 31, 2008				Full Year 2008				March 31, 2009				June 30, 2009				September 30, 2009				December 31, 2009				Full Year 2009
Private Equity
Revenues
Management Fees
Base Management Fees		$	67,336			$	66,967			$	67,009			$	67,649			$	268,961			$	68,431			$	67,740			$	67,009			$	67,329			$	270,509
Transaction and Other Fees, Net *			5,831				5,387				16,760				23,818				51,796				10,328				15,145				18,368				42,495				86,336
Management Fee Offsets **			(3,404	)			(1,458	)			-				-				(4,862	)			-				-				-				-				-
Total Management Fees			69,763				70,896				83,769				91,467				315,895				78,759				82,885				85,377				109,824				356,845
Performance Fees and Allocations
Realized			470				(1,219	)			-				-				(749	)			-				-				-				34,021				34,021
Unrealized			(163,900	)			23,179				(104,653	)			(184,362	)			(429,736	)			4,818				97,185				110,867				90,621				303,491
Total Performance Fees and Allocations			(163,430	)			21,960				(104,653	)			(184,362	)			(430,485	)			4,818				97,185				110,867				124,642				337,512
Investment Income (Loss)
Realized			1,930				9,798				(245	)			2,204				13,687				(344	)			102				8,794				28,416				36,968
Unrealized			(25,854	)			(10,532	)			(47,645	)			(112,169	)			(196,200	)			(15,165	)			17,118				18,640				12,676				33,269
Total Investment Income (Loss)			(23,924	)			(734	)			(47,890	)			(109,965	)			(182,513	)			(15,509	)			17,220				27,434				41,092				70,237
Interest Income and Dividend Revenue			(3,683	)			(902	)			(1,820	)			12,864				6,459				(152	)			824				2,553				4,531				7,756
Other			4,557				1,228				2,256				(3,567	)			4,474				180				472				677				1,516				2,845
Total Revenues			(116,717	)			92,448				(68,338	)			(193,563	)			(286,170	)			68,096				198,586				226,908				281,605				775,195
Expenses
Compensation and Benefits
Base Compensation			29,182				32,605				40,373				44,391				146,551				36,848				40,667				42,011				61,740				181,266
Performance Fee Related
Realized			(25	)			(4,243	)			3				10				(4,255	)			(6	)			(3	)			135				615				741
Unrealized			(109,909	)			11,921				(6,184	)			(21,918	)			(126,090	)			(41,966	)			13,599				27,755				20,919				20,307
Total Compensation and Benefits			(80,752	)			40,283				34,192				22,483				16,206				(5,124	)			54,263				69,901				83,274				202,314
Other Operating Expenses			22,200				20,880				23,957				23,093				90,130				20,108				20,553				21,318				20,492				82,471
Total Segment Expenses			(58,552	)			61,163				58,149				45,576				106,336				14,984				74,816				91,219				103,766				284,785
Economic Net Income (Loss)		$	(58,165	)		$	31,285			$	(126,487	)		$	(239,139	)		$	(392,506	)		$	53,112			$	123,770			$	135,689			$	177,839			$	490,410
Net Fee Related Earnings from Operations		$	18,297			$	15,871			$	16,194			$	31,566			$	81,928			$	19,883			$	23,885			$	21,153			$	32,905			$	97,826
Real Estate
Revenues
Management Fees
Base Management Fees		$	66,751			$	67,977			$	80,361			$	80,832			$	295,921			$	80,198			$	81,517			$	83,409			$	83,323			$	328,447
Transaction and Other Fees, Net *			11,795				6,854				7,050				10,347				36,046				3,140				2,879				3,347				16,472				25,838
Management Fee Offsets **			(404	)			(326	)			(1,435	)			(2,804	)			(4,969	)			(1,193	)			(486	)			(415	)			(373	)			(2,467	)
Total Management Fees			78,142				74,505				85,976				88,375				326,998				82,145				83,910				86,341				99,422				351,818
Performance Fees and Allocations
Realized			4,842				2,105				7,100				10,634				24,681				646				4,590				(11,441	)			3,166				(3,039	)
Unrealized			(34,904	)			(79,238	)			(309,548	)			(420,014	)			(843,704	)			(229,219	)			(51,960	)			23,608				5,391				(252,180	)
Total Performance Fees and Allocations			(30,062	)			(77,133	)			(302,448	)			(409,380	)			(819,023	)			(228,573	)			(47,370	)			12,167				8,557				(255,219	)
Investment Income (Loss)
Realized			1,182				935				1,326				335				3,778				1,397				1,345				(3,078	)			6,500				6,164
Unrealized			(3,803	)			(12,294	)			(60,017	)			(162,536	)			(238,650	)			(67,239	)			(59,408	)			1,242				(219	)			(125,624	)
Total Investment Income (Loss)			(2,621	)			(11,359	)			(58,691	)			(162,201	)			(234,872	)			(65,842	)			(58,063	)			(1,836	)			6,281				(119,460	)
Interest Income and Dividend Revenue			2,425				(1,445	)			1,367				3,533				5,880				384				197				2,035				3,414				6,030
Other			20				1,016				144				1,828				3,008				(669	)			2,405				1,450				75				3,261
Total Revenues			47,904				(14,416	)			(273,652	)			(477,845	)			(718,009	)			(212,555	)			(18,921	)			100,157				117,749				(13,570	)
Expenses
Compensation and Benefits
Base Compensation			37,609				36,842				40,223				36,010				150,684				36,002				39,207				38,484				44,422				158,115
Performance Fee Related
Realized			394				536				543				(383	)			1,090				2,138				(542	)			(1,690	)			3,600				3,506
Unrealized			(2,315	)			(5,295	)			(19,664	)			(47,707	)			(74,981	)			(75,459	)			(45,489	)			5,721				1,246				(113,981	)
Total Compensation and Benefits			35,688				32,083				21,102				(12,080	)			76,793				(37,319	)			(6,824	)			42,515				49,268				47,640
Other Operating Expenses			16,160				12,581				14,807				12,234				55,782				12,615				12,978				13,437				17,295				56,325
Total Segment Expenses			51,848				44,664				35,909				154				132,575				(24,704	)			6,154				55,952				66,563				103,965
Economic Net Income (Loss)		$	(3,944	)		$	(59,080	)		$	(309,561	)		$	(477,999	)		$	(850,584	)		$	(187,851	)		$	(25,075	)		$	44,205			$	51,186			$	(117,535	)
Net Fee Related Earnings from Operations		$	20,317			$	22,787			$	32,739			$	43,778			$	119,621			$	30,513			$	32,867			$	33,376			$	38,431			$	135,187
Credit and Marketable Alternatives
Revenues
Management Fees
Base Management Fees		$	103,187			$	127,465			$	131,908			$	114,276			$	476,836			$	96,503			$	96,293			$	105,430			$	102,647			$	400,873
Transaction and Other Fees, Net *			1,128				2,884				3,806				698				8,516				443				687				778				958				2,866
Management Fee Offsets **			-				(16	)			(165	)			(6,425	)			(6,606	)			(4,213	)			(4,365	)			(4,121	)			(1,995	)			(14,694	)
Total Management Fees			104,315				130,333				135,549				108,549				478,746				92,733				92,615				102,087				101,610				389,045
Performance Fees and Allocations
Realized			2,049				7,662				1,107				4,263				15,081				-				587				7,622				35,073				43,282
Unrealized			3,009				37,365				(13,595	)			(39,601	)			(12,822	)			9,922				21,832				36,114				46,688				114,556
Total Performance Fees and Allocations			5,058				45,027				(12,488	)			(35,338	)			2,259				9,922				22,419				43,736				81,761				157,838
Investment Income (Loss)
Realized			8,193				11,451				(24,400	)			(77,386	)			(82,142	)			(11,998	)			(4,268	)			1,953				(718	)			(15,031	)
Unrealized			(90,465	)			36,598				(147,848	)			(55,369	)			(257,084	)			8,090				29,049				29,976				28,901				96,016
Total Investment Income (Loss)			(82,272	)			48,049				(172,248	)			(132,755	)			(339,226	)			(3,908	)			24,781				31,929				28,183				80,985
Interest Income and Dividend Revenue			2,034				1,830				1,401				3,262				8,527				709				279				929				1,535				3,452
Other			855				6				(186	)			539				1,214				(253	)			315				715				248				1,025
Total Revenues			29,990				225,245				(47,972	)			(55,743	)			151,520				99,203				140,409				179,396				213,337				632,345
Expenses
Compensation and Benefits
Base Compensation			54,913				66,021				66,066				52,436				239,436				53,707				49,304				54,365				40,741				198,117
Performance Fee Related
Realized			499				534				(976	)			8,105				8,162				57				82				842				19,873				20,854
Unrealized			861				17,607				(4,822	)			(20,289	)			(6,643	)			7,370				8,020				24,594				27,509				67,493
Total Compensation and Benefits			56,273				84,162				60,268				40,252				240,955				61,134				57,406				79,801				88,123				286,464
Other Operating Expenses			18,307				25,158				26,073				36,489				106,027				23,645				16,461				18,123				22,432				80,661
Total Segment Expenses			74,580				109,320				86,341				76,741				346,982				84,779				73,867				97,924				110,555				367,125
Economic Net Income (Loss)		$	(44,590	)		$	115,925			$	(134,313	)		$	(132,484	)		$	(195,462	)		$	14,424			$	66,542			$	81,472			$	102,782			$	265,220
Net Fee Related Earnings from Operations		$	26,322			$	40,490			$	42,417			$	21,712			$	130,941			$	14,428			$	25,164			$	24,005			$	36,049			$	99,646
Financial Advisory
Revenues
Advisory Fees		$	68,563			$	71,080			$	157,026			$	100,850			$	397,519			$	90,940			$	82,503			$	94,566			$	122,709			$	390,718
Investment Income (Loss)
Realized			-				-				-				-				-				-				-				-				1,443				1,443
Unrealized			-				-				-				-				-				-				-				476				(257	)			219
Total Investment Income (Loss)			-				-				-				-				-				-				-				476				1,186				1,662
Interest Income and Dividend Revenue			1,999				1,188				1,939				3,022				8,148				1,044				1,118				1,250				1,842				5,254
Other			598				638				1,777				1,886				4,899				(943	)			(122	)			1,051				(21	)			(35	)
Total Revenues			71,160				72,906				160,742				105,758				410,566				91,041				83,499				97,343				125,716				397,599
Expenses
Compensation and Benefits
Base Compensation			46,967				48,574				82,295				56,919				234,755				50,952				54,239				57,686				69,482				232,359
Total Compensation and Benefits			46,967				48,574				82,295				56,919				234,755				50,952				54,239				57,686				69,482				232,359
Other Operating Expenses			11,061				12,537				17,352				26,327				67,277				12,976				21,734				22,666				22,196				79,572
Total Segment Expenses			58,028				61,111				99,647				83,246				302,032				63,928				75,973				80,352				91,678				311,931
Economic Net Income		$	13,132			$	11,795			$	61,095			$	22,512			$	108,534			$	27,113			$	7,526			$	16,991			$	34,038			$	85,668
Net Fee Related Earnings from Operations		$	2,625			$	11,295			$	60,460			$	20,798			$	95,178			$	24,694			$	4,874			$	16,405			$	31,778			$	77,751
Economic Net Income Recap, Total Segments
Revenues
Management and Advisory Fees
Base Management Fees		$	237,274			$	262,409			$	279,278			$	262,757			$	1,041,718			$	245,132			$	245,550			$	255,848			$	253,299			$	999,829
Advisory Fees			68,563				71,080				157,026				100,850				397,519				90,940				82,503				94,566				122,709				390,718
Transaction and Other Fees, Net *			18,754				15,125				27,616				34,863				96,358				13,911				18,711				22,493				59,925				115,040
Management Fee Offsets **			(3,808	)			(1,800	)			(1,600	)			(9,229	)			(16,437	)			(5,406	)			(4,851	)			(4,536	)			(2,368	)			(17,161	)
Total Management and Advisory Fees			320,783				346,814				462,320				389,241				1,519,158				344,577				341,913				368,371				433,565				1,488,426
Performance Fees and Allocations
Realized			7,361				8,548				8,207				14,897				39,013				646				5,177				(3,819	)			72,260				74,264
Unrealized			(195,795	)			(18,694	)			(427,796	)			(643,977	)			(1,286,262	)			(214,479	)			67,057				170,589				142,700				165,867
Total Performance Fees and Allocations			(188,434	)			(10,146	)			(419,589	)			(629,080	)			(1,247,249	)			(213,833	)			72,234				166,770				214,960				240,131
Investment Income (Loss)
Realized			11,305				22,184				(23,319	)			(74,847	)			(64,677	)			(10,945	)			(2,821	)			7,669				35,641				29,544
Unrealized			(120,122	)			13,772				(255,510	)			(330,074	)			(691,934	)			(74,314	)			(13,241	)			50,334				41,101				3,880
Total Investment Income (Loss)			(108,817	)			35,956				(278,829	)			(404,921	)			(756,611	)			(85,259	)			(16,062	)			58,003				76,742				33,424
Interest Income and Dividend Revenue			2,775				671				2,887				22,681				29,014				1,985				2,418				6,767				11,322				22,492
Other			6,030				2,888				3,991				686				13,595				(1,685	)			3,070				3,893				1,818				7,096
Total Revenues			32,337				376,183				(229,220	)			(621,393	)			(442,093	)			45,785				403,573				603,804				738,407				1,791,569
Expenses
Compensation and Benefits
Base Compensation			168,671				184,042				228,957				189,756				771,426				177,509				183,417				192,546				216,385				769,857
Performance Fee Related
Realized			868				(3,173	)			(430	)			7,732				4,997				2,189				(463	)			(713	)			24,088				25,101
Unrealized			(111,363	)			24,233				(30,670	)			(89,914	)			(207,714	)			(110,055	)			(23,870	)			58,070				49,674				(26,181	)
Total Compensation and Benefits			58,176				205,102				197,857				107,574				568,709				69,643				159,084				249,903				290,147				768,777
Other Operating Expenses			67,728				71,156				82,189				98,143				319,216				69,344				71,726				75,544				82,415				299,029
Total Segment Expenses			125,904				276,258				280,046				205,717				887,925				138,987				230,810				325,447				372,562				1,067,806
Total Economic Net Income (Loss)		$	(93,567	)		$	99,925			$	(509,266	)		$	(827,110	)		$	(1,330,018	)		$	(93,202	)		$	172,763			$	278,357			$	365,845			$	723,763
Total Net Fee Related Earnings from Operations		$	67,561			$	90,443			$	151,810			$	117,854			$	427,668			$	89,518			$	86,790			$	94,939			$	139,163			$	410,410
____________________
* Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners including, for Private Equity, broken deal expenses.
** Primarily placement fees.

THE BLACKSTONE GROUP L.P. Exhibit 4b. Reconciliation of Income (Loss) Before Provision (Benefit) for Taxes to Total Segments Economic Net Income, of Total Segments, Economic Net Income to Net Fee Related Earnings from Operations, of Net Fee Related Earnings from Operations to Adjusted Cash Flow from Operations and of Earnings Before Interest, Taxes and Depreciation and Amortization from Net Fee Related Earnings from Operations to Net Fee Related Earnings from Operations (Dollars in Thousands)
	The tables below reconcile Economic Net Income (Loss) to Net Fee Related Earnings from Operations.
				Three Months Ended																				Three Months Ended
				March 31, 2008				June 30, 2008				September 30, 2008				December 31, 2008				Full Year 2008				March 31, 2009				June 30, 2009				September 30, 2009				December 31, 2009				Full Year 2009
	Private Equity
	Economic Net Income (Loss)			$	(58,165	)		$	31,285			$	(126,487	)		$	(239,139	)		$	(392,506	)		$	53,112			$	123,770			$	135,689			$	177,839			$	490,410
	Performance Fees and Allocations Adjustment (a)				163,430				(21,960	)			104,653				184,362				430,485				(4,818	)			(97,185	)			(110,867	)			(124,642	)			(337,512	)
	Investment Income (Loss) Adjustment (b)				23,924				734				47,890				109,965				182,513				15,509				(17,220	)			(27,434	)			(41,092	)			(70,237	)
	Investment Income (Loss) - Treasury Cash Management (c)				-				-				-				-				-				-				-				-				5,510				5,510
	Performance Fee Related Compensation and Benefits Adjustment (d)				(109,934	)			7,678				(6,181	)			(21,908	)			(130,345	)			(41,972	)			13,596				27,890				21,534				21,048
	Taxes Payable (e)				(958	)			(1,866	)			(3,681	)			(1,714	)			(8,219	)			(1,948	)			924				(4,125	)			(6,244	)			(11,393	)
	Net Fee Related Earnings from Operations			$	18,297			$	15,871			$	16,194			$	31,566			$	81,928			$	19,883			$	23,885			$	21,153			$	32,905			$	97,826
	Real Estate
	Economic Net Income (Loss)			$	(3,944	)		$	(59,080	)		$	(309,561	)		$	(477,999	)		$	(850,584	)		$	(187,851	)		$	(25,075	)		$	44,205			$	51,186			$	(117,535	)
	Performance Fees and Allocations Adjustment (a)				30,062				77,133				302,448				409,380				819,023				228,573				47,370				(12,167	)			(8,557	)			255,219
	Investment Income (Loss) Adjustment (b)				2,621				11,359				58,691				162,201				234,872				65,842				58,063				1,836				(6,281	)			119,460
	Investment Income (Loss) - Treasury Cash Management (c)				-				-				-				-				-				-				-				-				4,312				4,312
	Performance Fee Related Compensation and Benefits Adjustment (d)				(1,921	)			(4,759	)			(19,121	)			(48,090	)			(73,891	)			(73,321	)			(46,031	)			4,031				4,846				(110,475	)
	Taxes Payable (e)				(6,501	)			(1,866	)			282				(1,714	)			(9,799	)			(2,730	)			(1,460	)			(4,529	)			(7,075	)			(15,794	)
	Net Fee Related Earnings from Operations			$	20,317			$	22,787			$	32,739			$	43,778			$	119,621			$	30,513			$	32,867			$	33,376			$	38,431			$	135,187
	Credit and Marketable Alternatives
	Economic Net Income (Loss)			$	(44,590	)		$	115,925			$	(134,313	)		$	(132,484	)		$	(195,462	)		$	14,424			$	66,542			$	81,472			$	102,782			$	265,220
	Performance Fees and Allocations Adjustment (a)				(5,058	)			(45,027	)			12,488				35,338				(2,259	)			(9,922	)			(22,419	)			(43,736	)			(81,761	)			(157,838	)
	Investment Income (Loss) Adjustment (b)				82,272				(48,049	)			172,248				132,755				339,226				3,908				(24,781	)			(31,929	)			(28,183	)			(80,985	)
	Investment Income (Loss) - Treasury Cash Management (c)				-				-				-				-				-				-				-				-				1,326				1,326
	Performance Fee Related Compensation and Benefits Adjustment (d)				1,360				18,141				(5,798	)			(12,184	)			1,519				7,427				8,102				25,436				47,382				88,347
	Taxes Payable (e)				(7,662	)			(500	)			(2,208	)			(1,713	)			(12,083	)			(1,409	)			(2,280	)			(7,238	)			(5,497	)			(16,424	)
	Net Fee Related Earnings from Operations			$	26,322			$	40,490			$	42,417			$	21,712			$	130,941			$	14,428			$	25,164			$	24,005			$	36,049			$	99,646
	Financial Advisory
	Economic Net Income			$	13,132			$	11,795			$	61,095			$	22,512			$	108,534			$	27,113			$	7,526			$	16,991			$	34,038			$	85,668
	Investment Income (Loss) Adjustment (b)				(1	)			-				1				-				-				-				-				(476	)			(1,186	)			(1,662	)
	Interest Income (Loss) - Treasury Cash Management (c)				-				-				-				-				-				-				-				-				1,220				1,220
	Performance Fee Related Compensation and Benefits Adjustment (d)				-				-				-				-				-				-				-				-				-				-
	Taxes Payable (e)				(10,506	)			(500	)			(636	)			(1,714	)			(13,356	)			(2,419	)			(2,652	)			(110	)			(2,294	)			(7,475	)
	Net Fee Related Earnings from Operations			$	2,625			$	11,295			$	60,460			$	20,798			$	95,178			$	24,694			$	4,874			$	16,405			$	31,778			$	77,751
	____________________
	(a)	This adjustment removes from ENI the segment amount of Performance Fees and Allocations.
	(b)	This adjustment removes from ENI the segment amount of Investment Income (Loss).
	(c)	This adjustment represents the realized and unrealized gain (loss) on the cash management investment activities of Blackstone’s Treasury function which are a component of Investment Income (Loss) but included in Net Fee Related Earnings.
	(d)	This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related to Performance Fees and Allocations.
	(e)	Represents an implied payable for income taxes calculated using a similar methodology applied in calculating the provision for The Blackstone Group L.P.
		continued...
THE BLACKSTONE GROUP L.P. Exhibit 4b. Reconciliation of Income (Loss) Before Provision (Benefit) for Taxes to Total Segments Economic Net Income, of Total Segments, Economic Net Income to Net Fee Related Earnings from Operations, of Net Fee Related Earnings from Operations to Adjusted Cash Flow from Operations and of Earnings Before Interest, Taxes and Depreciation and Amortization from Net Fee Related Earnings from Operations to Net Fee Related Earnings from Operations - Continued (Dollars in Thousands)
				Three Months Ended																				Three Months Ended
				March 31, 2008				June 30, 2008				September 30, 2008				December 31, 2008				Full Year 2008				March 31, 2009				June 30, 2009				September 30, 2009				December 31, 2009				Full Year 2009
	Income (Loss) Before Provision (Benefit) for Taxes			$	(1,245,176	)		$	(620,478	)		$	(1,843,707	)		$	(1,898,938	)		$	(5,608,299	)		$	(912,207	)		$	(586,986	)		$	(426,959	)		$	(365,314	)		$	(2,291,466	)
	IPO and Acquisition-Related Charges (a)				918,971				818,026				816,343				779,381				3,332,721				741,057				761,834				719,708				751,351				2,973,950
	Amortization of Intangibles (b)				33,528				40,685				39,512				39,512				153,237				39,513				39,511				39,513				39,511				158,048
	Income (Loss) Associated with Non-Controlling Interests in Income (Loss) of Consolidated Entities (c)				199,110				(138,308	)			478,586				252,935				792,323				38,435				(41,596	)			(53,905	)			(59,703	)			(116,769	)
	Total Segments
	Total Segments, Economic Net Income (Loss)				(93,567	)			99,925				(509,266	)			(827,110	)			(1,330,018	)			(93,202	)			172,763				278,357				365,845				723,763
	Performance Fees and Allocations Adjustment (d)				188,434				10,146				419,589				629,080				1,247,249				213,833				(72,234	)			(166,770	)			(214,960	)			(240,131	)
	Investment Income (Loss) Adjustment (e)				108,816				(35,956	)			278,830				404,921				756,611				85,259				16,062				(58,003	)			(76,742	)			(33,424	)
	Investment Income (Loss) - Treasury Cash Management (f)				-				-				-				-				-				-				-				-				12,368				12,368
	Performance Fee Related Compensation and Benefits Adjustment (g)				(110,495	)			21,060				(31,100	)			(82,182	)			(202,717	)			(107,866	)			(24,333	)			57,357				73,762				(1,080	)
	Taxes Payable (h)				(25,627	)			(4,732	)			(6,243	)			(6,855	)			(43,457	)			(8,506	)			(5,468	)			(16,002	)			(21,110	)			(51,086	)
	Net Fee Related Earnings from Operations				67,561				90,443				151,810				117,854				427,668				89,518				86,790				94,939				139,163				410,410
	Realized Performance Fees and Allocations (i)				8,286				15,054				5,237				4,639				33,216				-				474				(1,820	)			33,438				32,092
	Realized Investment (Income) Loss (j)				(80,249	)			56,028				(166,047	)			(141,814	)			(332,082	)			(14,734	)			15,032				38,815				44,623				83,736
	Adjusted Cash Flows From Operations			$	(4,402	)		$	161,525			$	(9,001	)		$	(19,321	)		$	128,801			$	74,784			$	102,296			$	131,934			$	217,224			$	526,238
	Earnings Before Interest, Taxes and Depreciation and Amortization from Net Fee Related Earnings from Operations (k)			$	99,923			$	103,639			$	167,781			$	139,413			$	510,756			$	104,846			$	97,463			$	121,259			$	171,916			$	495,484

	____________________
	(a)	This adjustment adds back to Income (Loss) Before Provision for Taxes amounts for Transaction-Related Charges which include principally equity-based compensation charges associated with Blackstone’s initial public offering and other corporate actions.
	(b)	This adjustment adds back to Income (Loss) Before Provision for Taxes amounts for the Amortization of Intangibles which are associated with Blackstone’s initial public offering and other corporate actions.
	(c)	This adjustment adds back to Income (Loss) Before Provision for Taxes the amount of Income (Loss) Associated with Non-Controlling Interests in Income (Loss) of Consolidated Entities.
	(d)	This adjustment removes from ENI the segment amount of Performance Fees and Allocations.
	(e)	This adjustment removes from ENI the segment amount of Investment Income (Loss).
	(f)	This adjustment represents the realized and unrealized gain (loss) on the cash management investment activities of Blackstone’s Treasury function which are a component of Investment Income (Loss) but included in Net Fee Related Earnings.
	(g)	This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related to Performance Fees and Allocations.
	(h)	Represents an implied payable for income taxes calculated using a similar methodology applied in calculating the provision for The Blackstone Group L.P.
	(i)	Represents the adjustment for realized Performance Fees and Allocations net of corresponding actual amounts due under Blackstone’s profit sharing plans related thereto.
	(j)	Represents the adjustment for Blackstone’s investment income (realized and unrealized) on its liquid investments from its Credit and Marketable Alternatives segment, as well as its net realized investment income on its illiquid investments, principally from its Private Equity and Real Estate Segments and permanent impairment charges on certain illiquid investments.
	(k)	Earnings Before Interest, Taxes and Depreciation and Amortization from Net Fee Related Earnings from Operations represents Net Fee Related Earnings from Operations adding back the implied taxes payable for Net Fee Related Earnings from Operations, see (h), and segment interest and depreciation and amortization.

THE BLACKSTONE GROUP L.P. Exhibit 5. Reconciliation of Adjusted Cash Flow from Operations to Net Cash Provided by Operating Activities, of Weighted-Average Economic Net Income Adjusted Units—Diluted to Total GAAP Weighted-Average Common Units Outstanding—Diluted and of Economic Net Income Adjusted Units—Diluted to Total GAAP Common Units Outstanding—Diluted (Dollars in Thousands, Except Unit Data)
The following table provides a reconciliation of Blackstone’s Adjusted Cash Flow from Operations to Blackstone’s Net Cash Provided by Operating Activities. Adjusted Cash Flow from Operations is a supplemental measure of liquidity to assess liquidity and amounts available for distributions to Blackstone unitholders, including Blackstone personnel.
		Three Months Ended December 31,								Year Ended December 31,
		2009				2008				2009				2008
Net Cash Provided by Operating Activities		$	505,981			$	1,197,952			$	411,509			$	1,890,435
Unrealized Depreciation on Hedge Activities			15,774				-				6,975				-
Changes in Operating Assets and Liabilities			198,091				(424,758	)			(70,200	)			(757,084	)
Short Term Investment Activity			(476,712	)			-				553,288				-
Blackstone Funds Related Investment Activities			3,917				(368,964	)			(446,233	)			(469,693	)
Net Realized Gains (Losses) on Investments			5,134				(78,652	)			(135,243	)			(164,726	)
Non-Controlling Interests in Income of Consolidated Entities			288,290				1,078,967				1,942,838				3,523,697
Realized Gains (Losses) - Blackstone Funds			(20,375	)			(186,185	)			13,227				(197,426	)
Cash Flows from Operations - Adjustments
Interests Held by Blackstone Holdings Limited Partners (a)			(299,830	)			(1,254,914	)			(1,792,173	)			(3,638,799	)
Incremental Cash Tax Effect (b)			(3,046	)			17,233				42,250				(57,603	)
Adjusted Cash Flow from Operations		$	217,224			$	(19,321	)		$	526,238			$	128,801
The following table provides the details of the components of Adjusted Cash Flow from Operations. Adjusted Cash Flows from Operations is the principal factor in determining the amount of distributions to unitholders.
		Three Months Ended December 31,								Year Ended December 31,
		2009				2008				2009				2008
Fee Related Earnings
Total Management and Advisory Fees (c)		$	459,073			$	412,613			$	1,530,382			$	1,561,766
Total Expenses (d)			319,910				294,759				1,119,972				1,134,098
Net Fee Related Earnings from Operations			139,163				117,854				410,410				427,668
Performance Fees and Allocations Net of Related Compensation (e)			33,438				4,639				32,092				33,210
Blackstone Investment Income (f)
Liquid			19,932				(123,128	)			58,362				(327,453	)
Illiquid			24,691				(18,686	)			25,374				(4,624	)
			44,623				(141,814	)			83,736				(332,077	)
Adjusted Cash Flow from Operations		$	217,224			$	(19,321	)		$	526,238			$	128,801

__________________
(a)	Represents an adjustment to add back net income (loss) allocable to interest holders of Blackstone Holdings Limited Partners after the Reorganization recorded as Non-Controlling Interests.
(b)	Represents the provisions for and/or adjustments to income taxes that were calculated using a similar methodology applied in calculating such amounts for the period after the reorganization.
(c)	Comprised of total segment Management and Advisory Fees plus interest income.
(d)	Comprised of total segment compensation expense (excluding compensation expense related to Performance Fees and Allocations pursuant to Blackstone’s profit sharing plans related to carried interest and incentive fees which are included in (e) below), other operating expenses and Blackstone’s estimate of taxes payable.
(e)	Represents realized Performance Fees and Allocations net of corresponding actual amounts due under Blackstone’s profit sharing plans related thereto. The negative amounts for the quarter and year ended December 31, 2009 are the result of timing differences between the tax payment due date on certain taxable Performance Fees and Allocations and the cash receipt date of such Performance Fees and Allocations.
(f)	Comprised of Blackstone’s investment income (realized and unrealized) on its liquid investments from its Credit and Marketable Alternatives segment, as well as its net realized investment income on its illiquid investments, principally from its Private Equity and Real Estate Segments and permanent impairment charges on certain illiquid investments.

The following table provides a reconciliation of Blackstone’s Total GAAP Weighted-Average Common Units Outstanding—Diluted to Weighted-Average Economic Net Income Adjusted Units—Diluted.
		Quarter Ended December 31,				Year Ended December 31,
		2009		2008		2009		2008
Total GAAP Weighted-Average Common Units Outstanding - Diluted		313,124,952		275,459,297		288,990,187		268,377,404
Adjustments:
Weighted-Average Partnership Units		786,954,773		827,246,476		812,377,553		831,549,761
Weighted-Average Unvested Deferred Restricted Common Units		19,781,821		26,537,491		22,453,412		29,117,068
Weighted-Average Economic Net Income Adjusted Units - Diluted		1,119,861,546		1,129,243,264		1,123,821,152		1,129,044,232
The following table provides a reconciliation of Blackstone’s Total GAAP Common Units Outstanding—Diluted to Economic Net Income Adjusted Units—Diluted as of December 31, 2009.
Total GAAP Common Units Outstanding - Diluted		319,939,772
Adjustments:
Partnership Units		771,095,235
Unvested Deferred Restricted Common Units		35,939,305
Economic Net Income Adjusted Units - Diluted		1,126,974,312

THE BLACKSTONE GROUP L.P. Exhibit 6. Assets Under Management and Limited Partner Capital Invested Metrics (Dollars in Thousands)
			As of and for the Quarters Ended
			December 31,
			2009				2008
	Total Assets Under Management
	(End of Period)
	Private Equity		$	24,758,992			$	23,933,511
	Real Estate			20,391,334				24,154,642
	CAMA			53,032,802				46,471,064
			$	98,183,128			$	94,559,217
	Fee-Earning Assets Under Management
	(End of Period)
	Private Equity		$	24,521,394			$	25,509,163
	Real Estate			23,708,057				22,970,438
	CAMA			47,867,546				42,561,456
			$	96,096,997			$	91,041,057
	Weighted-Average Fee-Earning
	Assets Under Management
	(For the Quarter Ended)
	Private Equity		$	24,680,613			$	25,476,978
	Real Estate			23,846,532				22,641,365
	CAMA (a)			47,974,654				47,467,081
			$	96,501,799			$	95,585,424
	Weighted-Average Fee-Earning
	Assets Under Management
	(Year to Date Period Ended)
	Private Equity		$	25,144,272			$	25,212,332
	Real Estate			23,426,111				21,017,915
	CAMA (b)			45,893,845				50,765,223
			$	94,464,228			$	96,995,470
_________________________
(a)	Includes a decrease of $2.1 billion related to Blackstone’s 2008 decision to liquidate its proprietary single manager hedge funds.
(b)	Includes a decrease of $3.1 billion related to the matters discussed in (a).
continued...
THE BLACKSTONE GROUP L.P. Exhibit 6. Assets Under Management and Limited Partner Capital Invested Metrics - Continued (Dollars in Thousands)
			As of and for the Quarters Ended
			December 31,
			2009				2008
	Limited Partner Capital Invested
	(For the Quarter Ended)
	Private Equity		$	898,483	)		$	1,133,134	)
	Real Estate			381,348				258,574
	CAMA (a)			313,596				333,831
			$	1,593,427			$	1,725,539
	Limited Partner Capital Invested
	(Year to Date Period Ended)
	Private Equity		$	1,541,974			$	3,760,262
	Real Estate			884,151				968,684
	CAMA (a)			721,401				1,819,705
			$	3,147,526			$	6,548,651
	Fund Level Unrealized Value (b)
	(End of Period)
	Private Equity
	Cost		$	19,854,772			$	19,033,797
	Unrealized Value		$	17,043,648			$	15,072,940
	Real Estate
	Cost		$	12,173,699			$	11,483,382
	Unrealized Value		$	7,070,274			$	9,392,700
	CAMA (a)
	Cost		$	3,077,283			$	2,744,190
	Unrealized Value		$	3,247,280			$	1,761,247
_________________________
(a)	Limited Partner Capital Invested and Fund Level Unrealized Value for the CAMA segment represent activity in Blackstone’s mezzanine and credit liquidity funds.
(b)	Cost and unrealized value represent the limited partners’ share, including co-investments arranged by Blackstone, of those fund level investments on which carried interest can be earned, before carried interest allocations to Blackstone, when a fund achieves cumulative investment returns in excess of a specified rate.