This IPO in and was worth $4 Billion. The IPO Prospectus includes all the relevant information for the IPO. Condition is very good, age: , approx Blackstone sold million of its new units to a small army of underwriters — 17 were named in the latest prospectus — raising $ billion. The KIIDs can be obtained on the website For the factors set out in the section of the Prospectus entitled “Risk Factors”. In view of.
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Filed Pursuant to Rule b 4 Registration No. The Blackstone Group L. This is our initial public offering of common units and no public market currently exists for our common units.
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Our common units have been approved for listing, subject to official notice of issuance, on the New York Stock Exchange under the symbol “BX. The sale of non-voting common blackstonee to the State Investment Company is subject to, and will close concurrently with, the completion of this offering. We intend to use a portion of the proceeds from this offering and the sale of non-voting common units to the State Investment Company to purchase interests in our business from our existing owners, including members of our senior management.
Investing in our common units involves risks. These risks include the following: We have granted the underwriters the right to purchase up to an additional 20, common units to cover over-allotments. Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. You should rely only on the information contained in this prospectus or in any free writing prospectus we may authorize to be delivered to you.
Neither we nor the underwriters have authorized anyone to provide you with additional or different information. We and the underwriters are offering to sell, and seeking offers to buy, our common units only in jurisdictions where offers and sales are permitted. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of our common units.
This delivery requirement is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions. References in this prospectus to the ownership of our founders and other senior managing directors and of selected other individuals engaged in some of our businesses include the ownership of current and future personal planning vehicles of these individuals.
Completion of our reorganization occurred prior to this offering. Our assets under management equal the sum of: Our calculation of assets under management may differ from the calculations of other asset managers and as a result this measure may not be blackstonf to similar measures presented by other asset managers.
Our definition of assets under management is not based on any definition of assets under management that is set forth in the agreements governing the investment funds that we manage.
Unless indicated otherwise, the information included in this prospectus assumes no exercise by the underwriters of the option to purchase up to an additional 20, common units from us. This summary highlights information contained elsewhere in prosppectus prospectus and does not contain all the information you should consider before investing in our common units.
You should read this entire prospectus carefully, including the section entitled “Risk Factors” and the financial statements and the related notes before you decide to invest in our common units. We are a leading global alternative asset manager and provider of financial advisory services.
Our alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds.
We also provide various financial advisory services, including corporate and mergers and acquisitions advisory, restructuring and reorganization advisory and fund blackstne services. We seek to deliver superior returns to investors in our funds through a disciplined, value-oriented investment approach. We believe that this investment approach, implemented across our broad and expanding range of alternative asset classes and investment strategies, helps provide stability and predictability to our business over different economic cycles.
Since we were founded inwe have cultivated strong relationships with clients in our financial advisory business, where we endeavor to provide objective and insightful bpackstone and advice that our clients can trust. We believe our scaled, diversified businesses, coupled with our long track record of investment performance, proven investment approach and strong client relationships, position us to continue to perform well in a variety of market conditions, expand our assets under management and add complementary businesses.
We believe that the depth and breadth of the intellectual capital and experience of our professionals are key reasons why we have generated exceptional returns over many years for the investors in our funds. This track record in turn has allowed us to successfully and repeatedly raise additional prospectis from an increasingly wide variety of sophisticated investors.
We generate our income from fees earned pursuant to contractual arrangements with the investment funds that pio manage, with the investors in these funds and with these funds’ portfolio companies including management, transaction and monitoring feesas well as from fees earned for the provision of corporate and mergers and acquisitions advisory services, restructuring and reorganization advisory services and fund placement services for alternative investment funds.
In most cases, we receive a preferred allocation of income a “carried interest” or an incentive fee from an investment fund in the event that specified investment returns are achieved by the opo.
Our ability to generate carried interest and incentive fees is an important element of our business and these items have historically accounted for a very significant portion of our income.
Our business is organized into four business segments: Prior to this offering we effected our reorganization into a holding partnership structure described in “Organizational Structure. Through wholly-owned subsidiaries, The Blackstone Group L. Accordingly, The Blackstone Group L. Immediately following this offering and the sale of non-voting common units to the State Investment Company as described below, The Blackstone Group L.
After such four-year period, the State Investment Company may sell up to one-third of its common units over each of the subsequent three years and we have agreed to provide it with registration rights to effect such sales.
Unaffiliated third-party transferees of common units from the State Investment Company or its affiliates will have the same limited voting rights with respect to such common units as the investors in this offering will have.
The sale of non-voting common units to the. State Investment Company is subject to, and will close concurrently with, the completion of this offering. The State Investment Company has agreed to explore in good faith potential arrangements pursuant to which it or its affiliates would invest in or commit to fund amounts to current and future investment funds managed by us and to evaluate in good faith and consider investing in any comparable funds or vehicles offered by us in connection with any investment they make in alternative asset funds or vehicles.
In addition, the State Investment Company has agreed that it and its affiliates will obtain our written consent prior to making any investment in any other firm primarily engaged in the sponsorship or management of alternative asset funds or vehicles for a year following this offering.
Our intention is to distribute to our common unitholders on a quarterly basis substantially all of The Blackstone Group L.
We expect that our first quarterly distribution will be paid in the fourth quarter of in respect of the prior quarter. Because we will not know what our available adjusted cash flow from operations will be for any year until the end of such year, we expect that our first three quarterly distributions in respect of any given year will generally be smaller than the final quarterly distribution in respect of such year.
The declaration and payment of any distributions will be at the sole discretion of our general partner. If Blackstone Holdings makes such distributions, our existing owners, as limited partners of Blackstone Holdings, will be entitled to receive equivalent distributions pro rata based on their partnership interests in Blackstone Holdings except that The Blackstone Group L.
In addition, with respect to our actively investing carry funds, senior debt vehicles and proprietary hedge funds as well as any future carry funds, senior debt vehicles and proprietary hedge funds, we intend to continue to allocate to the senior managing directors, other professionals and selected other individuals who work in these operations a portion of the carried interest or incentive fees earned in prospectks to these funds in order to better align their interests with our own and with those of the investors in these funds.
In connection with the reorganization we intend to make one or more distributions to our existing owners representing all of the undistributed earnings generated by the businesses to be contributed to Blackstone Holdings prior to the date of the offering. However, the actual amount of such prosoectus will depend on prospectue amount of earnings generated by the contributed businesses prior to the offering.
As discussed in “Material U. An entity that is treated as a partnership for U. Instead, each partner is required to take into account its allocable share of items of income, gain, loss and deduction of the partnership in computing its U. Accordingly, an investor in this offering will generally be required to pay U. Federal Tax Considerations” for a summary discussing certain U. Deconsolidation of Blackstone Funds. Investors in our common units should note that Blackstone’s corporate private equity, real estate opportunity and mezzanine funds have historically been consolidated into Blackstone’s financial statements, notwithstanding that Blackstone has only a minority interest in these funds.
Consequently, our historical financial statements do not reflect the net asset value of our investments in such funds, but reflect rather on a gross basis the assets, liabilities, revenues, expenses and cash flows of these funds.
We intend to deconsolidate all of our funds that have historically been consolidated in our financial statements with the exception of our proprietary hedge funds and four of our funds of hedge funds.
Accordingly, we will no longer record the non-controlling interests’ share of these fund’s partners’ capital and net income. We believe that the deconsolidation of these funds by means of granting investors in these funds general partner removal rights or liquidation rights, as the case may be, will result in our financial statements reflecting our alternative asset management business, including our management fee, incentive fee and performance fee revenues, in a manner that reflects both how our management evaluates our business and the risks of the assets and liabilities of our firm.
Accordingly, we believe that deconsolidating these funds will provide investors reviewing our financial statements an enhanced understanding of our business. Because we are initiating these steps, we are not seeking or receiving any consideration from the investors in these funds for granting them these rights.
There will be no change in either our equity or net income as a result of the deconsolidation. See “Unaudited Pro Forma Financial Information” for a more detailed description of the deconsolidation of our investment funds from our financial statements. World Leader in Alternative Asset Management. Alternative asset management is the fastest growing segment of the asset management industry, and we are one of the largest independent alternative asset managers in the world.
We believe that the strength and breadth of our franchise, supported by our people. We have been one of the largest private equity fund managers since we entered this business in We believe that our long-term leadership in private equity has imbued the Blackstone brand with value that enhances all of our different businesses and facilitates our ability to expand into complementary new businesses.
Diversified, Global Investment Platform. Our asset management businesses are diversified across a broad variety of alternative asset classes and investment strategies and have global reach and scale.
We benefit from substantial synergies across all of these businesses, including the ability to leverage the extensive intellectual capital that resides throughout our firm. James across all of our businesses, is not only a significant reason for our successful investment performance but also helps to maximize those synergies.
In addition, we believe our financial advisory segment further increases the diversification of our business mix. During our year history, we have grown by entering new businesses that were complementary to our existing asset management and financial advisory businesses.
For example, in we entered into a partnership with the founders of BlackRock Inc. We sold our interest in BlackRock Inc. We have invested in complementary new areas because they offered opportunities to deploy our financial and intellectual capital and generate superior investment returns, attractive net income margins and substantial cash flow.
We believe that our ability to identify and successfully enter new growth areas is a key competitive advantage, and we will continue to seek new opportunities to expand our asset management franchise and our advisory business. Exceptional Investment Track Record.
blackstone group lp
We have an exceptional record of generating attractive risk-adjusted returns across our asset management businesses, as shown in the table below. We believe that the superior investment returns we have generated for investors in our funds over many years across a broad and expanding range of alternative asset classes and through all types of economic conditions and all cycles of the equity and debt capital markets are a key reason why we have been able to successfully and consistently grow our assets under management across our alternative asset management platform.
The historical information prospeftus above and elsewhere in this prospectus with respect to the investment performance of our funds is provided for illustrative purposes only. The historical investment performance of our funds is no guarantee of future performance of our current funds or any other fund we may manage in the future. Diverse Base of Longstanding Investors.
We have a long history of raising significant amounts of capital on a global basis prsopectus a broad range of asset classes, and we believe that the strength and breadth of our relationships with institutional investors provide us with a competitive advantage in raising capital for our investment funds.
During our two decades of asset management activities, we have built long-term prospetcus with many of the largest institutional investors in the world, most of which invest in a number of different categories of our investment funds. Our Park Hill Group business further enables us to grow our investor base. I;o believe that our strong network of investor relationships, together with our long-term track record of providing investors in our funds with superior risk-adjusted investment returns, will enable us to continue to grow our assets under management across our investment platform.
Strong Industry and Corporate Relationships. We believe that the strength of our relationships with investment banking firms, other financial intermediaries and leading corporations and corporate executives provides us with competitive advantages in identifying transactions, securing investment opportunities and generating exceptional returns.
We actively cultivate our relationships with major investment banking firms and other financial intermediaries and are among the most significant clients of many of these firms. For example, our investment professionals meet regularly with investment bankers and other personnel of all of the major investment banking firms regarding potential investment opportunities, and we will often seek to work with many of the same financial institutions that we have worked with on previous transactions when seeking financing arrangements for potential investment opportunities.