BlackStone Group LP (NYSE:BX) Q2 2019 Earnings Conference Call - Final Transcript

Jul 18, 2019 • 09:00 am ET


BlackStone Group LP (NYSE:BX) Q2 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Very good day, and welcome to the Blackstone Second Quarter 2019 Investor Call. [Operator Instructions]

And now, I would like to hand over to your host for today, Weston Tucker. Please go ahead, sir.

Weston Tucker

Great. Thanks, Mark, and good morning and welcome to Blackstone second quarter conference call. Joining today's call are Steve Schwarzman, Chairman and CEO; Jon Gray, President and Chief Operating Officer; Tony James, Executive Vice Chairman, Michael Chae, Chief Financial Officer and Joan Solotar, Head of Private Wealth Solutions.

Earlier this morning, we issued a press release and slide presentation which are available on our website. We expect to file our 10-K report next month.

I'd like to remind you that today's call may include forward-looking statements, which are uncertain and outside of the firm's control and may differ from actual results materially. We do not undertake any duty to update these statements. For a discussion of some of the risks that could affect results, please see the Risk Factors section of our 10-K. We'll also refer to non GAAP measures, and you'll find reconciliations in the press release on the Shareholders' Page of our website. Also note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any Blackstone fund. This audiocast is copyrighted material of Blackstone and may not be duplicated without consent.

So, a quick recap of our results. We reported GAAP net income of $647 million for the quarter. Distributable earnings were $709 million or $0.57 per common share. And we declared a dividend of $0.48 to be paid to holders of record as of July 29.

With that, I'll turn the call over to Steve.

Stephen A. Schwarzman

Good morning, and thank you for joining our call. The past few months have been a remarkable period for Blackstone, characterized by transformation and continued momentum.

First, from a business perspective, we continue to extend our leading investment platforms into new areas, allowing us to offer our limited partners a broader array of products and solve more of their issues. And second, in terms of transformation of our company, we became a corporation on July 1. This marked one of the most significant decisions in Blackstone's 34-year history, and a key milestone in the evolution and institutionalization of the firm.

As the largest firm and the only one with leading businesses across the full alternative spectrum, we've established a truly unique position in our sector, which is, in fact, the best part of the massive $150 trillion plus global money management industry.

Alternatives have historically generated better returns than traditional investments, net of all fees, combined with high safety of principal. This is a powerful value proposition and is why our segment of the market continues to experience rapid secular growth and increasing allocations to the top managers, along with more attractive economics than any other part of the industry.

Blackstone's ongoing transformation and the extension of our capabilities perfectly position us to benefit from these trends.