2010 Blackstone Investor Day

2010 Blackstone Investor Day
September 23, 2010
Hilton New York

New York, NY
Forward‐Looking Statements and Important Disclosures
This presentation 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 the SEC
filings.
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 presentation includes Non‐GAAP Financial Measures. You should also read the appendix to this presentation –
Reconciliation of Non‐GAAP Financial Measures.
This release is for informational purposes only and does not constitute an offer of any Blackstone fund or an offer to
enter into any investment program with Blackstone. Such an offer may only be made by means of an offering
memorandum, which would have a complete description of the relevant fund or program, including the risks
applicable thereto.
0
Agenda – Thursday, September 23, 2010
Time Function Location
8:00 – 8:05 am Introduction and Overview of The Blackstone Group Trianon Ballroom, 3rd Floor
Joan Solotar – Senior Managing Director, External Relations and Strategy,
The Blackstone Group
8:05 – 8:20 am Welcome Remarks Trianon Ballroom, 3rd Floor
Stephen A. Schwarzman – Chairman, CEO & Co‐Founder, The Blackstone Group
8:20 – 9:00 am Financial Overview Trianon Ballroom, 3rd Floor
Laurence Tosi (“LT”) – Chief Financial Officer, The Blackstone Group
9:00 – 9:40 am Portfolio Operations Group Trianon Ballroom, 3rd Floor
James Quella – Senior Managing Director, The Blackstone Group
9:40 – 10:25 am Private Equity Trianon Ballroom, 3rd Floor
Garrett Moran – Senior Managing Director, The Blackstone Group
Vikrant Sawhney – Senior Managing Director, The Blackstone Group
rd
10:25 – 10:45 am BREAK – Cyber Café Petit Trianon, 3 Floor
10:45 – 11:25 am Blackstone Advisory Partners Trianon Ballroom, 3rd Floor
John Studzinski – Senior Managing Director, The Blackstone Group
11:30 – 12:10 pm Restructuring & Reorganization Advisory Trianon Ballroom, 3rd Floor
Timothy Coleman – Senior Managing Director, The Blackstone Group
12:10 – 12:30 pm BREAK – Cyber Café Petit Trianon, 3rd Floor
12:30 – 1:30 pm GSO Credit Platform – Working Lunch Mercury Ballroom, 3rd Floor
Bennett Goodman – Senior Managing Director, The Blackstone Group & Founder,
GSO Capital Partners
1:30 – 1:45 pm BREAK – Cyber Café Petit Trianon, 3rd Floor
1:45 – 2:35 pm Real Estate Trianon Ballroom, 3rd Floor
Jonathan Gray – Senior Managing Director, The Blackstone Group
2:35 – 3:25 pm Blackstone Alternative Asset Management (“BAAM”) Trianon Ballroom, 3rd Floor
J. Tomilson Hill – Vice Chairman, The Blackstone Group
rd
3:25 – 4:30 pm Wrap‐up and Q&A Trianon Ballroom, 3 Floor
Stephen A. Schwarzman – Chairman, CEO & Co‐Founder, The Blackstone Group
Hamilton E. James – President & COO, The Blackstone Group
4:30 – 5:30 pm COCKTAIL RECEPTION Petit Trianon, 3rd Floor
Table of Contents
I. Introduction and Overview of The Blackstone Group
II. Financial Overview
III. Portfolio Operations Group
IV. Private Equity
V. Blackstone Advisory Partners
VI. Restructuring & Reorganization Advisory
VII. GSO Credit Platform
VIII. Real Estate
IX. Blackstone Alternative Asset Management (“BAAM”)
Appendix
A. Reconciliation of Non‐GAAP Financial Measures
B. Speaker Biographies
I. Introduction and Overview of The Blackstone Group
Overview of the Blackstone Group
Private Credit and
Real Financial
Marketable
Equity Estate Advisory
Alternatives
 Global leader in institutional alternative asset management with $101.4 billion of Fee‐Earning AUM
• Leader: Brand, scale and diversity creates unique synergies and superior returns
• Consistency: Returned an average of 2.4x capital and a net IRR > 25% in Private Equity and Real Estate funds
since inception(1)
• Growth: 15 straight years of fee‐earning asset growth at a 27% CAGR
• Outperformance: Raised $20 billion in new funds during down cycle
• Value: Created $13 billion of investor value in the last 12 months; returned $30 billion in gains over 25 years
 Strong, predictable free cash flow driven by long‐term asset management contracts
• Over 70% of Fee‐Earning AUM are under long‐term contracts; not subject to redemption risk
• Generated Net Fee Related EBITDA of $547 million and Distributable Earnings of $609 million in the last
12 months
 Robust balance sheet with $1.6 billion of cash and liquid investments
• ‘A’ rating from S&P with stable outlook; ‘A+’ rating from Fitch with stable outlook
 Deep, experienced management team
• Presides over strong risk management processes and strict capital discipline across all cycles
• Approximately 66% of equity is owned by partners and employees creating a culture of ownership and long‐term
accountability
________________________________________________
Note: Data as of June 30, 2010.
(1) Past performance is not necessarily indicative of future results.
1
II. Financial Overview
An Unparalleled Record of Consistent Growth
Private Equity Real Estate Credit & Marketable Alternatives Financial Advisory
 $25.2 billion Fee‐Earning AUM  $23.8 billion Fee‐Earning AUM  $52.4 billion Fee‐Earning AUM  M & A, Restructuring &
Reorganization, Park Hill
Placement Agent
Assets Under Management(1) Fee‐Earning AUM
$16 billion in
($ in billions) committed capital
not yet paying fees
$120 $117
$101
$100 $96
$91
15‐Year CAGR
$83
$80 CAGR 27% CAMA
$70
40%
$60 $51
Real
Estate
$40 $32 33%
$27
$22
Private
$20 $12 $13 $14 Equity
$8 $8
$3 $4 18%
$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 June
2010
________________________________________________
(1) Chart reflects Total AUM for years 1995‐2006, and Fee‐Earning AUM thereafter.
1
Blackstone Financials
Key Revenue Drivers
Privates Marketable Alternatives
(PE, RE, GSO Mezz) (FoHFs, BREDS, GSO Hedge)
Fee‐Earning AUM Fee‐Earning AUM
Management Fees
(Committed/Invested Capital) (NAV including marks)
Transaction & Advisory Fees Activity‐based Activity‐based
Carried Interest Incentive Fees
Performance Fees
(20% of Positive Returns)(1) (% of Positive Returns)
Principal Gains on BX BX Returns on its BX Returns on its

Investments in Funds GP Investments (2%–3%) GP Investments (2%–3%)
________________________________________________
(1) Assumes preferred return hurdle is achieved by the fund.
2
Fee Revenue Streams
($ in millions) ($ in billions)
$1,800 $1,636 $1,562 $1,618 $180

$1,518
$1,500 $123 $166 $150
$472 $127
Fee‐Earning AUM
Fee Revenues
$1,200 $398 $391 $428 $120

$360
$900 $90
$600 $60
$1,042 $1,000 $1,024
$804
$300 $30
$0 $0
2007 2008 2009 2010 LTM
Management Fees Advisory Fees Transaction & Other Fees Fee‐Earning AUM
 Management Fees are a uniquely consistent revenue stream
• Recurring revenues driven by Fee‐Earning AUM
• $70 billion (~70%) of Fee‐Earning AUM is subject to long‐term lock‐ups (10–12 years)
 Transaction and Advisory Fees have material upside generated by activity levels
• More than 50% of Fee‐Earning AUM is eligible for Transaction Fees
 Firm’s expense base is covered by fee streams and is profitable across all segments
• Includes all expenses except Performance Fee Compensation for partners and employees
• 70% of total expense base is variable
3
Realized Performance Revenue Streams
$1,200 $1,055 $160
$995
Realized Performance Fees
$916
Fee‐Earning AUM
$900 $120
$96 $101
$600 $91 $80
$83
$322
$300 $55 $169 $40
$133
$37 $39 $74
$23 $24
$0 $0
2003 2004 2005 2006 2007 2008 2009 2010 LTM
Realized Performance Fees Fee‐Earning AUM
 Performance Fees consist of “Carried Interest” and “Incentive Fees”
• Carried Interest generated by Private Equity, Real Estate, and GSO (Mezz)
• Incentive Fees generated by Real Estate Debt Strategies (BREDS), BAAM, and GSO (Hedge)
 Performance Fees are recorded on an accrual basis; Realized Performance Fees on a cash basis
 While on an accrual basis Performance Fees are variable and can be negative, there can be no
negative Realized Performance Fees over the life of a fund = “Riskless Upside”
 While “lumpy”, Performance Fees are generated with consistent returns over time
4
Blackstone Financials – 2010 LTM ($ in millions)
Key Financial Metrics
GAAP Income (Loss) Before Provision for Taxes $(1,657)

+ IPO and Acquisition‐Related Charges
+ Amortization of Intangibles
‐ Income (Loss) of Non‐Controlling Interests
Economic Net Income
= Economic Net Income $1,251
“ENI”
‐ Net Performance Fees and Allocations
‐ Investment Income (Loss)
‐ Taxes Payable
Net Fee Related Earnings
= Net Fee Related Earnings $441
“NFRE”
+ Net Realized Performance Fees and Allocations
+ Realized Investment Income (Loss)
Distributable Earnings
= Distributable Earnings $609
“DE”
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Private Equity Profile
Fee Revenues
 Fee‐Earning AUM of $25.2 billion ($ in millions) ($ in billions)
$500 $50
$392
 Capital is subject to 10‐year lock‐up $400 $370 $367 $40
Fee‐Earning AUM
$327
Fee Revenues
$115 $97 $125
$300 $58 $30
 Management Fees paid on committed capital,
$200 $20
not carrying value:
$255 $269 $271 $267
$100 $10
• Insulated from market cyclicality
$0 $0
• Transaction Fees create upside 2007 2008 2009 2010 LTM
Management Fees Transaction & Other Fees
Fee‐Earning AUM
 Performance Fees of 20% paid on realized gains
• $2.1 billion since 2003; positive through ($ in millions) ($ in billions)
downcycle $700 $666 $50
$602
$600 $574
$40
Fee‐Earning AUM
$500
 Substantial “Dry Powder” to invest $30
$400
$300 $20
$231
 Financial profile creates competitive advantage $200 $10
$79 $81
for patient investment and superior returns $100 $34
$0
$0
$(1)
$(100) $(10)
 Realized Net IRRs since inception of 25% 2003 2004 2005 2006 2007 2008 2009 2010
LTM
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Real Estate Profile
Fee Revenues
 Fee‐Earning AUM of $23.8 billion ($ in millions) ($ in billions)
$600 $571 $50
$500
 Capital is subject to 10‐year lock‐up for carry $40
Fee‐Earning AUM
Fee Revenues
$338 $361 $366
funds $400 $336
$33 $30
$33
$300 $40
$20
 Management Fees paid on committed capital, $200
$296 $328 $333
$233 $10
not carrying value for carry funds $100
$0 $0
2007 2008 2009 2010 LTM
 Performance Fees of 20% paid on realized Management Fees Transaction & Other Fees
gains Fee‐Earning AUM
 Substantial “Dry Powder” to invest ($ in millions) ($ in billions)
$400 $347 $40
$327
$300 $30
Fee‐Earning AUM
 Realized Net IRRs since inception of 28% $209
$200 $20
$100 $67 $10

$34
$25 $14
$0 $0
$(3)
$(100) $(10)
2003 2004 2005 2006 2007 2008 2009 2010
LTM
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Credit and Marketable Alternatives Profile
 Fee‐Earning AUM of $52.4 billion Fee Revenues
 Highly diversified by strategy, sector and vintage $600 $100
$488
 Counter‐cyclical elements drive growth $500
$427 $80
Fee‐Earning AUM
$394
Fee Revenues
$400
 Flexible strategies tailored to client and $327 $60
$300
opportunity $40
$200
 Limited partners are predominately institutional $20
$100
 Despite industry shake‐out and redemptions, $0 $0
BAAM and GSO had net inflows in 2008 and 2007 2008 2009 2010 LTM
2009 Fee Revenues Fee‐Earning AUM
 Gaining market share as BAAM and GSO
outperform relevant benchmarks ($ in millions) ($ in billions)
$160 $154 $90
CAMA Fee‐Earning AUM Mix as of June 30, 2010
Fee‐Earning AUM
Closed‐End $120
Credit Hedge Mutual Funds (Asia) $60
5%3% $80 $73

$47 $41 $43 $30
Customized $40 $24
GSO $20
Strategies / Customized $15
45% 33% 52% Solutions
CLOs $0 $0
(BAAM) 2003 2004 2005 2006 2007 2008 2009 2010
LTM
7%
Credit Draw‐down
8
Financial Advisory Profile
 Pure strategic advisory businesses Fee Revenues
($ in millions)
 Blackstone Restructuring and Reorganization
$500 $434
• Leading restructuring and reorganization $411 $396
$400 $368
franchise, providing counter‐cyclical benefits
• 2009 was second consecutive record year in $300
terms of restructuring revenues $200
 Blackstone Advisory Partners $100
• Boutique global advisory business, growing $0
revenues even in a down market 2007 2008 2009 2010 LTM
 Park Hill Group
Net Fee Related Earnings
• Leading private equity and real estate ($ in millions)
fundraising business for third parties $100 $95 $91
$71 $78
 Revenues per partner nearly double that of $80
independent peers $60
 Invested aggressively in growth during the $40
down cycle $20
 Businesses have counter‐cyclical elements $0
leading to balanced, stable profitability and 2007 2008 2009 2010 LTM
growth Pro Forma (1)
________________________________________________

(1) 2007 Pro Forma includes all adjustments related to the Initial Public Offering and Reorganization, as if such transaction had been completed in January 1, 2007.
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Strong Balance Sheet(1)
($ in millions)
 “A’ rating from S&P with stable outlook; ‘A+’ June 30, 2010
Rating from Fitch with stable outlook
Total Cash and Liquid Investments
 $3.45 billion in Investments Cash and Cash Equivalents $ 507

Treasury Cash Management Strategies 813
• No recourse to BX balance sheet
Liquid Investments 274
• No direct investments / proprietary Total Cash and Liquid Investments $ 1,594
positions
Total Debt
• Diversified by business, fund, vintage, $1,070 million Revolver –
sector and region Loans Payable
10‐Year Note Due 2019 592
 Added $400 million of 10.5‐year notes at
Balance Sheet Items with Offsetting Assets 65
5.875%; long‐term capital for growth
Total Debt $ 657
Total Partners’ Capital $ 5,813
Current Market Capitalization(2) $ 12,397
________________________________________________
(1) Represents deconsolidated balance sheet as presented in public filings.
(2) Current Market Capitalization calculated using BX closing price as of September 20, 2010 and Blackstone’s Economic Net Income
Adjusted Units as of June 30, 2010.
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III. Portfolio Operations Group
Our Mission: Sustainable Competitive Advantage Delivering Long‐Term Value
 Blackstone’s Portfolio Operations Group… works with our investment teams and portfolio
company senior management to help acquired businesses become more productive,
competitive and efficient
 In the process, we build stronger enterprises, preserve and create jobs, and enable our
portfolio companies to achieve lasting value for both our fund investors and successor
owners
1
Blackstone’s Global Reach and Scale
Blackstone Private Equity’s 62 portfolio companies extend across a broad range of geographies and
industries, and collectively represent a portfolio of substantial scale
Geographies Industries Size(1)

 North America 39  Industrials & Energy 18  Over $110 billion total
revenues
 Europe 9  Healthcare 10
 Approximately 715,000 total
 Asia / Africa 14  Tech, Media & Telecom 10 employees
 Hospitality / Leisure 8  Equity invested by Blackstone
funds of $24 billion
 Business Services 6
 Total current enterprise value
 Financial Services 5 over $200 billion
 Retail / Consumer 5
________________________________________________
(1) Includes BX ownership percentage of DT and Harrah’s. Total enterprise value represents mark‐to‐market value as of 6/30/10.
2
Sources of Sustainable Competitive Advantage…
Financial Stability Strategy & Performance Enhancement
 Business Systems / Financial Controls  Global Peer Review Process
 Working Capital Optimization  100‐day Planning
 Tax Optimization  Leadership Development
 Management Assessment
Productivity & Competitiveness
 Talent Management
 Process Redesign / Lean
 Supply Chain Corporate Governance
 Procurement Processes and Consortia Buying  Board Composition and Process
 IT / Outsourcing
Corporate Responsibility
 Healthcare Benefits
 Ethics / FCPA
Structural Transformation  Social Responsibility
 Transformational Change  Environmental Management
Revenue Optimization
 “Go to Market” Redesign
 Strategic Sales and Marketing
 Pricing / Sales Force Optimization
 Cross‐Selling
3
Good Progress in 2009 and 2010
… alongside value delivery within the portfolio companies
Investing in Growth and Leadership by hiring specialists in:
 Growth
 Leadership and management development
Portfolio
Expanded functional capabilities with senior operating advisors
Operations
 IT, Lean, Supply Chain
Organization
 Salesforce Effectiveness
 Pricing and Marketing
 Advertising and Branding
Reviewed and reorganized portfolio company boards
 Increased use of senior advisors / independent directors
Portfolio  Rebalanced BX professionals
Monitoring
New quarterly portfolio review process
and
 Sector‐focused peer reviews
Governance
 Combining investment and operating executives
 CEO‐led portfolio company deep dives
4
Support Model Combines Sector and Functional Expertise
Portfolio Operations Group has grown to over 60 FTEs over the past six years
Deal Partners 14 Sector
19 Generalist and Functionally
Focused on Focused 30 Full‐time Equivalents
Specialized Executives(1)
Industry Sectors ex‐CEOs
Blackstone
Global Senior Global Portfolio Portfolio Strategic
Portfolio
Sector Teams Advisors Operations Group Support Groups
Companies
Business  Strategy & Performance Enhancement  CoreTrust Purchasing Group™

Services
 Governance
Consumer /  Equity Healthcare Group
 Leadership / Management Assessment
Retail
 Transformational Change  Cross‐Selling
Financial
 Lean Process Redesign Platforms
Institutions
 Supply Chain / Procurement
Hospitality /  TBM Consulting
Leisure  Pricing / Sales Force
 Healthcare Benefits  E&Y Working Capital
Healthcare Optimization
 Business Systems / Financial Controls
 IT / Operations
India  E&Y / Deloitte Tax
Optimization
Industrial /
Chemical / Energy
Tech, Media,
Telecom
________________________________________________
(1) North America, Europe, Asia.
5
Working Collaboratively with Management, Deal Teams and Co‐Sponsors
 Our Portfolio‐Wide, Transformational, and Functional Initiatives have generated or are on track to generate over $4 billion of
annualized gross EBITDA impact
 $4 billion = $36 billion of TEV, or ~20% of total Private Equity portfolio TEV at 9x portfolio multiple
Portfolio‐Wide Initiatives Transformational Initiatives Functional Initiatives

 Group Purchasing including Core  Large‐scale, company‐wide  More focused programs aimed at
Trust™ leverages purchasing power programs aimed at driving increasing the efficiency and
of the portfolio in non‐strategic significant value effectiveness of a particular
indirect goods and services function in the portfolio company
 Management upgrades
 Equity Healthcare improves the  Examples include:
 Integrated corporate programs:
quality levels of individual
healthcare and applies group • Pricing
• Corporate‐wide restructuring
purchasing to healthcare benefits • Sales Force Productivity
• Growth initiatives; pricing and
 Cross‐Selling promotes portfolio sales productivity • Lean Process Design
companies’ purchasing goods and
services from each other • Lean process redesign • IT Productivity
 Working Capital optimization • Plant consolidation and • Co‐sourcing

increases cash flow and improves low‐cost sourcing
• Procurement
asset utilization • Supply chain, procurement, and
distribution optimization • Outsourcing
• IT and operations restructuring
and co‐sourcing
6
Over 150 Touch Points across the Portfolio Companies
Integrated
Group Equity Performance IT & Sales & Working
Number of Touches Purchasing Healthcare & BOD Lean Outsourcing Marketing Capital + Tax Europe India China
36 28 20 10 15 8 12 23 15 2
Select Portfolio Cos.   
Allcargo Global Logistics   
Alliant Holdings  
AlliedBarton   
Apria Healthcare Group    
Biomet     
BlueStar      
Catalent Pharmaceuticals     
Center Parcs   
Cineworld   
DJO       
Freescale Semiconductor      
Gokaldas Exports     
Hilton Hotels    
Michaels Stores         
Nielsen        
Travelport       
7
Portfolio‐Wide Initiatives
Our portfolio‐wide initiatives have generated or are on track to generate over $640 million of
annualized gross EBITDA impact, plus an additional $600 million in one‐time cash savings
 Group Purchasing including Core Trust™
 Equity Healthcare
 Collaborative Platforms
 Working Capital Optimization
8
Group Procurement – Progress 2009 vs. 2010
Substantial benefits from aggregating and integrating purchasing
 Original 2005 target $100 million–$150 million savings on $3 billion indirect spend
• Achieved $240 million annualized savings in 2008     $300 million annualized
savings in 2009
• New target $350+ million annualized savings in 2010
 Over ~$1.4 billion of annual spend managed through the program
 80%     85% of portfolio companies participate globally
 35+ categories available today
 Global capability for over 10 categories
 No cost to participate in virtually all categories
9
Equity Healthcare (“EH”) Custom Clinical Model
5x clinical staff solely dedicated to EH and 2.5x engagement of members “at risk” vs. standard
models
Member and Provider Outreach
Behavioral
Health / EAP 24‐Hour Nurse
Vendors
Line
Medical D Centers of
Excellence
Claims A
Personal Health
T P Advocate
Pharmacy Maternity
A R
Claims Preadmission Calls ABC Co.
E Pharmacy Enhanced Discharge Planning Health and
Lab W D Post Discharge Calls Wellness
Data A Case Management HRA
I Programs
R Integration with Vendor Partners Telephonic
Demo‐ C Medical Director / Support Staff Coaching
graphics E T Care Alerts
H Customer Service
I
Behavioral O O
Health Disease
U N Online Management
Claims S Coaching
E & Modules
Integration of Data with
Health Risk Assessment /
Health Risk Assessment
Future Biometrics
10
Equity Healthcare – First Year Results: 2009
 Aggregate EH trend is 6.4% vs. U.S. corporate average ~10.6%(1)
 2009 estimated net savings of $35 million for 25 portfolio companies
• $19 million medical claim savings due to better quality and decision making
• $16 million administration (ASO) fee savings
 Aggressive savings target of $100+ million
• Continued investment in incentives and plan design
• New membership growth
________________________________________________
(1) Segal Trend Survey.
11
Cross‐Selling Opportunity and Program (B2B)
Cross‐selling B2B program continues to grow rapidly, with material revenue and EBITDA impact
 Full‐time resource in Portfolio Operations Group to coordinate cross‐selling programs (B2B and B2C)
Specific Product / Service Opportunities Examples:
 Intelenet – business process outsourcing  Allcargo – logistics
 Orbitz , Hilton Hotels, La Quinta – travel  T‐Mobile Wireless – telecom

services
 SunGard – business services
 Alliant Insurance – insurance, employee
 RGIS – inventory management
benefits consulting
 Performance Food Group – food distribution
 AlliedBarton – security services and
into hotels, theme parks
employee screening
 Merlin, Michaels Stores, Universal, Tragus,
 Republic Services – waste management
CineWorld, Center Parcs, others – employee
promotional discounts / co‐marketing
12
Cross‐Selling Platform – Blackstone B2C Marketplace
 Exclusive Blackstone
platform
 Objective is to promote
Blackstone portfolio
companies
 31 U.S. based portfolio
companies participating with
350k+ employees...
U.K. planned in phase 2
 Available to interested LPs
 Ability to integrate
“Exclusive Blackstone Offers”
to employees
 Includes many non‐
Blackstone merchants
 Launched in May
13
CxO On‐line Network for Portfolio Senior Executives (CEO, CFO, CPO, CHRO, CMO, CIO…)
Welcome to The Blackstone Group CEO Network
Welcome to the CEO Network! Our site promotes relationship building among the CEOs of our Portfolio
Companies, such as yourself. You will find the latest personal and contact information for members as well
as opportunities to interact with them through surveys and discussion boards.
To begin the process you will need to register by clicking on the “New Member Registration” link below. If
you have already registered with us, please log in by entering your E‐mail address and Password and then
CEO Network clicking on the “Login” button below.
We hope you enjoy your experience and encourage your feedback as we continue to update the site to
meet your needs.
14
Environmental Sustainability Initiative
Portfolio Operations Group plans to retain a Chief Sustainability Officer (“CSO”) to drive portfolio‐
wide initiatives
 Environmental Sustainability Task Force formed in 2008 to establish Blackstone as PE industry leader
in environmental stewardship
 Three primary areas of focus:
• Blackstone energy consumption and environmental impact
• Portfolio energy consumption and environmental impact (both PE and RE)
• Environmental risk assessment in all investment processes
 Targeting meaningful energy and carbon reductions over the next five years
• Top‐tier of companies globally
• Sharing expertise across portfolio
• Full compliance with CRC mandate across European portfolio
 Broad communication program being launched this quarter
• Documenting environmental and cost benefits for the firm and portfolio
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Our Mission: Sustainable Competitive Advantage Delivering Long‐Term Value
 Blackstone’s Portfolio Operations Group… works with our investment teams and portfolio
company senior management to help acquired businesses become more productive,
competitive and efficient
 In the process, we build stronger enterprises, preserve and create jobs, and enable our
portfolio companies to achieve lasting value for both our fund investors and successor
owners
16
IV. Private Equity
Blackstone Capital Partners Overview(1)
Global Leader in  Invested $33 billion of equity capital in 142 transactions since December 1988
Private Equity

Successful  Returns generated in fully invested funds from inception through 06/30/10
Long‐Term Track • Gross IRR of 33% (25% net) – 2.5x MoIC on realized / partially realized investments
Record • Over 23 years, BCP has outperformed the S&P Index by 16% annually(2)

 Transformational value‐added operations capability
 Mid‐Market / Growth Equity Focus
Investment
 Global reach
Strategy
 Demonstrated expertise at timing economic cycles
 Deep experience in corporate partnerships

Capital Available for  Between BCP V and BCP VI, we currently have approximately $13.5 billion of available capital
Investment

Alignment of  $2.3 billion total invested / committed capital by Blackstone and its professionals
Interests • 7% of total capital invested

Deep Investment  28 Senior Managing Directors
Team
________________________________________________
Past performance is not necessarily indicative of future results. BCP V has invested $17.4 billion as of June 30, 2010 with a realized / unrealized value of $17.2 billion, generating a gross IRR of ‐0.5%,
Note:
and a net IRR of ‐2%. There can be no assurance that any BCP fund will achieve its objectives or avoid substantial losses.
(1) Information is as of June 2010 unless otherwise stated. Includes Blackstone Communications Partners, a sector‐specific fund.
(2) S&P 500 Annual Return has been calculated as the internal rate of return of the total contributions and distributions (including fees, drawdown of expenses, return of capital and recouped losses), and
the corresponding annual rate of return of the S&P 500 Index from each contribution / distribution date to the quarter end for all investments. For BCP I and BCP II, the S&P return has been calculated
from the most material investment tranche date to the final exit date for each investment. S&P 500 Annual Rate of Return is provided solely as an indication of returns that could be earned by
investors by making similar investments in the S&P 500 Index. Blackstone’s funds differ from the S&P 500 Index in that, among other factors, Blackstone’s funds are actively managed entities that bear
fees and use leverage.
1
Blackstone Provides Advantages Not Available to Stand‐alone Private Equity Firms
Expertise and deal sourcing beyond the reach of any stand‐alone private equity firm
Restructuring Advisory Corporate Advisory Real Estate Credit / GSO Fund of Hedge Funds

Restructurings involving Over $450 billion of
$24 billion AUM $29 billion AUM $29 billion AUM
over $925 billion of transactions
total liabilities
Deal Sourcing / Bankruptcy Deal Sourcing / Corporate Real Estate Asset Joint Investing / Market Global Macro /

Investing / Restructuring Partnerships / Proprietary Optimization and Insights / Captive Source of Target Identification /
Process Insight Structured Equity Financing / Joint Investing Debt for Portfolio Financing Public Market Insights
$28 billion in AUM
28 SMDs /
89 Professionals
________________________________________________
Note: Data as of June 30, 2010.
2
Flexible, Multi‐Strategy Investing – Not Mega Deals
The strengths of a large platform applied to less competitive medium‐sized deals
Investments by Strategy(1)
Early Stage / Large Private
Startups Transactions
13% 3%
Large Public‐to‐
 24% in growth Platform Buildups / Privates  24% in large
equity Industry Consolidations 21% transactions
11%
Structured
Equity
1%
Minority Stakes
 16% in minority 12%
and distressed  36% in small‐ and
investments Distressed Investments / medium‐sized deals
Rescue Financings Small‐ and Medium‐
3% Sized Buyouts
36%
________________________________________________
(1) Based on invested / committed capital from 2000 through September 17, 2010. Percentages may change over time.
3
Global Reach, Single Fund, One High Standard
Europe
5 SMDs
16 Professionals
5 Local Country Representatives
Asia
Sweden 4 SMDs United States
23 Professionals 19 SMDs
48 Professionals
London
Paris
Germany San Francisco
Switzerland Beijing Blackstone Chicago Boston
Italy Istanbul Headquarters Menlo Park
Dallas New York
Madrid
Shanghai Private Equity Office
Los Angeles
Tokyo Atlanta
Mumbai Hong Kong Affiliated Office Houston
Advisors
Strategy Sessions / First Investment Final Investment

Review Committee Workshop 100‐Day Plan Review
Lead Generation Committee Committee
 Top down  Gates deals and  Detailed drill‐  Price range,  Settles on final  Reviews results,

themes and lays out downs into the structure, value price and tactics operational
bottom up target workstreams for company’s creation plan, risks, enhancement
identification to all new deals strengths, upside plan, engagement
drive pro‐active weaknesses, opportunities, of strategic
deal sourcing opportunities, downside support groups,
and threats protection capital structure
optimization, and
liquidity protection
Ranked highest among Chief Investment Officers for investment process and risk management(1)
________________________________________________
(1) Citigroup Investment Research: Chief Investment Officer Survey, September 25, 2007 (to our knowledge, the most recent survey of its kind).
4
Consistent Investment Performance
Every closed BCP / BCOM fund has been in the top quartile or better.(1) Over 23 years, we have
outperformed the S&P Index by 16% annually
($ in millions)
Through June 30, 2010
Realized / Partially Realized Investments Total Investments
Gross Net Gross Net
Total Annual Annual Total Annual Annual S&P 500 Blackstone
Invested Rate of Rate of Invested Rate of Rate of Annual Out‐
(2) (2) (3)
Capital MOIC Return Return Capital MOIC Return Return Return Performance
BCP I $679 2.6x 28% 19% $679 2.6x 28% 19% 13% 6%
BCP II 1,201 2.6x 55% 37% 1,292 2.5x 50% 32% 11% 21%
BCP III 3,402 2.0x 23% 18% 4,026 2.0x 17% 13% 1% 12%
BCOM 1,215 1.8x 27% 24% 2,132 1.3x 14% 7% 1% 6%
BCP IV 4,373 3.1x 79% 62% 7,219 2.4x 53% 39% 2% 37%
Subtotal – Closed 10,870 2.5x 33% 25% 15,349 2.2x 29% 21% 5% 16%
BCP V 1,504 1.5x 23% 15% 17,428 1.0x 0% ‐2% ‐7% 5%

Total $12,374 2.4x 33% 25% $32,777 1.5x 26% 16% 0% 16%
____________________________________________
Note: Past performance is not necessarily indicative of future results. Inherent in an investment in any BCP / BCOM fund is significant risk and volatility, and there can be no assurance that any BCP /
BCOM fund will achieve its objectives or avoid substantial losses.
(1) Based on each closed BCP / BCOM fund’s net IRR as of June 30, 2010 compared to Thomson Reuters’ data as of March 31, 2010, the most current data available. As BCP V is still investing, it is not
considered a closed fund and is excluded from this analysis. As BCOM is a sector‐specific communications fund, BCOM’s net IRR was compared to the Thomson Reuters’ Telecom Funds Index rather
than the Buyout / Mezzanine Funds Index used to compare the BCP funds.
(2) Includes investments made by Blackstone’s Side‐by‐Side investment entities; excludes LP Co‐investments.
(3) S&P 500 Annual Return has been calculated as the internal rate of return of the total contributions and distributions (including fees, drawdown of expenses, return of capital and recouped losses),
and the corresponding annual rate of return of the S&P 500 Index from each contribution / distribution date to the quarter end for all investments. For BCP I and BCP II, the S&P return has been
calculated from the most material investment tranche date to the final exit date for each investment. S&P 500 Annual Rate of Return is provided solely as an indication of returns that could be
earned by investors by making similar investments in the S&P 500 Index. Blackstone’s funds differ from the S&P 500 Index in that, among other factors, Blackstone’s funds are actively managed
entities that bear fees and use leverage.
5
Recent Valuation Changes
The portfolio has appreciated by 39% in the last five quarters
BCP Overall Portfolio
20%
15.8%
10%
7.7%
4.1% 4.3%
2.4%
0%
2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010
________________________________________________
Note: Returns to investors will ultimately be reduced by management fees, carried interest, and other fees and expenses. Past performance is not necessarily
indicative of future results. Inherent in an investment in any BCP / BCOM fund is significant risk and volatility, and there can be no assurance that any BCP / BCOM
fund will achieve its objectives or avoid substantial losses.
6
The Majority of BCP Deals Are under $2 Billion TEV
Blackstone is an opportunistic “multi‐cap” investor, with nearly two‐thirds of our deals in the last
ten years having a TEV under $2 billion
Total Enterprise Value of Transactions, 2000–2010
($ in millions) Hilton
>$5,000
TDC Freescale
11 Deals SunGard
Nielsen
Biomet
Travelport BankUnited eAccess
Ish Spirit Michaels
TRW Automotive BlueStar
Nalco Celanese
Viatel Pinnacle Weather Channel
$2,000–$5,000 Extended Stay Texas Genco
UB
Merlin/LEGOLAND Catalent
22 Deals CTI Holdings Orangina
Stiefel SeaWorld
FGIC Southern Cross/NHP DJO
Universal Orlando Freedom Center Parcs
<$2,000
61 Deals
2000 2001 2003 2005 2006 2008 2010 2011
________________________________________________
Note: Only TEV >$2,000 labeled. Excludes BankUnited, which does not have a TEV comparable to other transactions.
7
Advantages of Scale
 Brand name matters
 Dedicated 50+ person Portfolio Operations Group focused on creating value
 High proportion of exclusive deals
 Preferred access to debt financing in capital constrained markets
 Process advantages from selling agents, including “last looks”
 Broad network of relationships to find deals
 Corporate partnerships
 Global perspective – even on domestic companies
 Deep financial and operating domain expertise in each major sector
 Strategic alliances – China, Korea, Brazil
8
Blackstone’s Approach to the Credit Markets
 Maintain a broad range of active and collaborative relationships
Proactive with investment banks, commercial banks, hedge funds and
mutual funds
 Continually stay ahead of, and take advantage of, new
Opportunistic
“technology” (e.g., amend/extend)
 Tailor the capital structure of each investment to suit that
Customized
particular investment thesis
Comprehensive  Manage the debt obligations of the BCP portfolio companies on
and an integrated basis, leverage best practices and relationships
Coordinated across the portfolio and the firm (e.g., GSO, BAAM)
9
Staying Power
Aggressive balance sheet initiatives – protecting our capital and capturing value. Over 50% of our
portfolio companies’ combined debt was eliminated, refinanced or extended in 2009 and 2010 YTD
($ in billions)
Debt Elimination
(via Buybacks, Discounted Exchanges, $6.9
and Debt / Equity Swaps)
Refinancings 12.2
Extensions 33.7
Total $52.8
$3 billion of equity value created
10
Built‐in Financial Flexibility
Strong Liquidity and Covenant Position
 Almost 2/3 of BCP V’s capital is invested in companies with no maintenance covenants
 Comfortable covenant cushions for companies with covenants
 Less than 3% of BCP V portfolio company debt matures before 2013; 65% matures 2015 and beyond
BCP V Debt Maturities(1)
50% 46.7%
% of Total BCP V Debt
40%
33.2%
30%
21.0%
20% 16.4% 15.8% 16.9%
10.7%
10% 8.2% 7.6% 7.5%
3.1% 4.7%
3.1% 1.6% 1.2%
0.2% 1.0%0.9% 0.2%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018+
BCP V Debt Maturities as of December 2008 BCP V Debt Maturities as of September 2010
________________________________________________
(1) Represents tranche maturities and excludes undrawn revolvers, where applicable. Excludes publics, development‐stage companies (American Petroleum
Tankers, OSUM, and PBF), debt portfolios (Citi and Deutsche Bank), Bayview, BankUnited, Harrah’s, and Summit Materials (new in 3Q 2009). Information based
on June 30, 2010 valuations. These statistics attribute all of Hilton’s debt to BCP; BREP and co‐investors own the majority of Hilton.
11
Credit Markets Outlook for BCP VI
As the BCP VI investment period begins, we expect to be at a very favorable point in the credit cycle
 Favorable environment for sale of non‐investment grade debt to institutional investors
• Rates are at historic lows
• Spreads are well above historic medians
• Default rates declining
• A shift in asset allocation from public equities to fixed income
• Growing focus among insurance companies and pension funds on merits of floating rate bank debt
• Record year for HY issuance
 Banking institutions have healed
• Exposures to 2007 vintage LBOs have largely been divested
• Banks have shifted lending focus disproportionately to “best in class” PE firms with strongest track records
• Traditional players have emerged stronger due to consolidation
• Credible new players have emerged
 BCP has more “arrows in the quiver” than before the crisis:
• GSO – Blackstone’s credit platform
• Outstanding relationships with large “direct lenders”
• Ongoing dialogue with PMs at hedge funds and mutual funds
• Direct relationships with capital markets and syndicate desks at the major broker dealers
12
BCP V Outlook
 We expect BCP V to generate a 2x MOIC(1)
• Average revenue and EBITDA growth rates of 5.1% and 8.3%, respectively
• Average margin improvement of 80 bps
 Solid balance sheets with comfortable covenant and maturity profiles
 91% of BCP V capital invested / committed
• Expect to close investment period in the next few months
________________________________________________
(1) While Blackstone currently believes that the assumptions on which this projection is based are reasonable under current circumstances, there is no guarantee
that the conditions on which such assumptions are based will materialize or otherwise be applicable to these funds. There can be no assurance that any fund
managed by Blackstone will be profitable or avoid substantial losses. Above projections do not include any assumptions regarding investment time horizon or the
rate of return on funds managed by Blackstone. Ultimate returns to investors will be reduced by management fees, fund expenses and carried interest.”
13
Overview of Current Environment
Blackstone has a track record of generating compelling returns across all cycles and is well
positioned to take advantage of this economic environment
Market Environment Opportunity
 We are cautious on economic growth  Post‐recession vintages have historically provided
prospects the highest returns
 An abundance of private equity in the  BCP has significant dry powder and a global
market makes on‐the‐run deals very opportunity set
difficult  Focus on exclusive opportunities driven by
 Debt markets have rebounded and industry / regional depth
support attractive dealmaking…  Recent Investments
• …but credit spreads are higher and
• Summit Materials – Aggregates build‐up
covenants are tighter
• PBF Refining – depressed refining opportunities
 Equity valuations are relatively attractive
• Sea World – furthering our theme park franchise
• But cyclicals ran sooner in this cycle
• Dili – modernizing distribution in China
than previously
• We assume valuations will not return
to ’06/’07 levels
14
Best Private Equity Investments Originate at the Bottom of the Cycle
Private Equity Industry Returns by Vintage vs. U.S. GDP Growth
?
35% 5%
31%
29%
30% 27% Precedent 4%
26% suggests
Mean Net IRR by Vintage
25% 23% should be 3%

22% excellent
21%
YoY U.S. GDP Growth
19% vintage
20% years 2%
16%
15% 15% 15%15%
15% 1%
11% 11%
9%
10% 7% 7% 0%
6%
5% ‐1%
1%
NA NA NA – –
0% ‐2%
‐2%
‐5% ‐3%
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Top of Cycle Bottom of Cycle U.S. GDP Growth
________________________________________________
Source: Global Insight; Cambridge Associates LLC; U.S. private equity Pooled Mean Net IRR to limited partners by vintage year as of March 31, 2010. Vintage year
funds formed since 2006 are too young to have produced meaningful returns. GDP projections as per the International Monetary Fund, 2009.
15
Fundraising and New Initiatives
 BCP VI
• Some subscription documents still outstanding, however we anticipate a final fund size of
over $13.5 billion
• Given the current and expected investments / commitments for BCP V, we expect to close the
BCP V investment period in the next few months
 Clean Technology – Growth equity in disruptive technologies
• Estimated fund size of $500 million
• Expect final close in 1Q 2011
 RMB Fund – China growth strategies
• Estimated fund size of 5 billion RMB (approximately $740 million)
• First close expected in 4Q 2010
16
Fundraising and New Initiatives (Cont’d)
 Infrastructure – Value‐oriented and value‐added Infrastructure investing, currently focused on
North American opportunities:
• Energy and Utilities
• Transportation
• Communications
• Estimated fund size of >$1 billion
• Expect final close in 4Q 2011
 Other new initiatives under evaluation include:
• Energy fund
• Emerging Asia fund
• Expanded presence in Latin America
17
V. Blackstone Advisory Partners
A. BAP Overview
A. BAP Overview
Blackstone Advisory Partners
 Advisor on over $450 billion of transactions since 1985
Leading Advisor
Independent and  A leading global independent trusted advisory practice with limited conflicts of interest and a high
Objective level of senior attention to clients
 Advise on and execute complex transactions:
• Merger and Acquisition Advisory
• Strategic and Financial Advisory
Broad Expertise
• Structured Products
• Divestitures and Reorganizations
• Joint Ventures and Minority Investments
 International hubs in New York, London, Hong Kong, and Paris with assignments throughout the U.S.,
International Reach Europe, and Asia
Diverse Industry  Financial Institutions, Energy and Natural Resources, Chemicals, Technology & Communications,

Coverage Media, Consumer, Real Estate, Industrials, and Minerals & Mining
 20 Senior Managing Directors with an average of over 20 years of industry expertise
Experienced Team  138 professionals globally
2
A. BAP Overview
Overview of Blackstone Advisory Partners: Superior Investment Banking Advice
Given our unique philosophy and approach to corporate advisory assignments, Blackstone is well
suited to advise clients on complex strategic initiatives
Absence of Conflicts of Interest
 Able to provide objective financial advisory service; no underwriting, equity research, or trading conflicts
Independence
 Emphasis on long‐term relationships with select clients; absolute confidentiality
Depth of Expertise; Senior‐Level Attention
 Senior Managing Directors with average tenure of 20 years in Investment Banking, nearly all of whom have led
Intellectual industry‐focused investment banking franchises previously
Capital  Extensive industry network, senior‐level relationships and regular strategic dialogue with Fortune 500
companies
Creative Solutions for Complex Issues
 Extensive experience advising a diverse set of clients, including public and private companies, boards, and
Innovation sovereign entities on strategic, financial, and structured transactions
 Structured finance team focuses on customized M&A solutions and creative financing solutions
Unique Perspectives on Value Creation – “Hired Principal” Mentality

Investor Focus  Distinctive ability to bring an owner’s mindset to bear on advisory engagements; extensive experience working
with the Firm’s portfolio companies
Global Presence and Ability to Capitalize on Other Blackstone Businesses
 Network of international offices and international advisory board allow Blackstone to offer global cross‐border
International advisory services
Network  Ability to leverage firm knowledge in private equity, restructuring, hedge fund, real estate and valuation
expertise
3
A. BAP Overview
Senior‐Level Coverage – “Hands on” Attention from an Exclusive Group of Top Bankers
Blackstone’s corporate advisory business consists of 20 SMDs with an average of 20 years industry
experience and 138 bankers around the world
Years of Experience
Team Member Focus Area in Industry Year Joined Blackstone
John Studzinski Head of Blackstone Advisory 31 2006
Martin Alderson Smith Financial Institutions 25 1991
David Bradley Chemicals 25 2009
Ivan Brockman Technology, Menlo Park 16 2007
Mary Anne Citrino Consumer Products 27 2004
Peter Cohen Media & Entertainment 19 2009
Jitesh Gadhia UK & India 20 2010
Martin Gudgeon European Restructuring 21 2007
Greg Hewett Structured Products 10 2005
Jonathan Koplovitz European M&A 20 1996
Thomas Middleton Telecom 25 2003
Larry Nath Structured Products 22 2005
Raffiq A. Nathoo Energy 20 1992
William Oglesby Paper & Packaging, Healthcare IT 27 2004
Chris Pasko Technology, Boston 21 2007
Jean‐Manuel Richier France 20 2009
Anthony Steains Asia / Metals & Mining 16 2008
Jean‐Michel Steg France 31 2009
Thomas Stoddard Financial Institutions 19 2008
Jianping Zheng Greater China 15 2008

4
A. BAP Overview
Advisory Product Categories – Intellectual Capital at Work
M&A and Corporate Advisory IPO and Capital Markets Advisory
Sector Expertise Board / Management Advice
 General advice and execution of acquisitions, mergers, joint ventures, minority  Advice on share repurchases, dividend policy and cost of capital
investments, asset swaps, divestitures, leveraged buyouts, special committees  Independent views on debt and equity capital raising
and takeover defenses  Private capital placement services
 Ability to advise on large‐cap (>$10 billion), mid‐cap and small‐cap (<$500  Coordination of selection of underwriters / lenders and negotiation of terms
million) transactions Sector Expertise
 Owner‐mindset in helping clients develop strategies for raising capital or
monetizing positions
Structured Products Restructuring and Reorganization Advice
We develop and deliver customized solutions to meet our clients’ complex financial Broad Relationships
and strategic objectives. Typical engagements include  Strong relationships with issuers, lenders, distressed‐debt investors, legal
 Structured financings, particularly for non‐traditional assets advisors and others
Strategic and Financial Acumen
 Creating customized M&A solutions  Expertise in corporate finance and business strategy, helping both companies
 Structuring joint ventures with strategic or financial partners and creditors develop strategic business plans, financial forecasts and
 Advising clients on capital structure issues restructuring alternatives
In‐depth Knowledge of Restructuring Process
 Comprehensive understanding of U.S. / European restructuring process and
proven ability to manage it to maximize value
5
A. BAP Overview
Blackstone Advisory: Representative Large Cap Transactions
Blackstone Advisory Partners has advised on numerous high‐profile transactions globally
$180 Billion
€93 Billion and
Sole Global $46 Billion $23 Billion $20 Billion £10 Billion $18 Billion
N/A
Coordinator
Advisor to Advisor to Advisor to Advisor to the Board Advisor to Advisor to Advisor to
of Directors of
on its merger with
on
on the buyout led by
and Advisor to on its proposed CEO Richard Kinder on its strategic on its sale to on the joint
merger with including investment in acquisition of
on the combination of its
global power business
with
$17 Billion £6.6 Billion(1) $8.3 Billion $8.0 Billion $7.6 Billion $3.7 Billion $3.3 Billion
Advisor to Sole advisor to Advisor to Advisor on the sale Advisor to Advisor to Advisor to

of
on the sale to on its sale of
on a minority on its acquisition of to Folgers through a
on the sale of its
investment in Reverse Morris
U.S. regulated
on its acquisition of Trust Structure to
utility operations to
Kraft’s frozen pizza
PPL Corporation
business
________________________________________________
(1) Represents total capital commitment from CDB.
6
B. BAP Highlights
B. BAP Highlights
M&A Market Overview
YTD 2010 M&A deal volume is up ~20% and acquisition multiples have increased from recent lows
U.S. M&A Activity
16,000 $2,000
($ in billions)
12,000 13,220 $1,500
12,714 12,767 12,350 11,363
8,000 10,079 9,893 10,041 9,181 $1,000
8,923 8,771
4,000 6,502 $500
4,532
0 $0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 YTD 6/09 YTD 6/10
Number of Deals Deal Value
Avg. Deal
Size(1) ($M) $307 $226 $181 $137 $157 $209 $274 $337 $355 $220 $212 $211 $159
U.S. Enterprise Value / LTM EBITDA Multiples(2)
15x
12x
11.1x 11.8x
9x 11.0x 10.4x
9.1x 9.5x 9.4x
6x 8.1x 8.0x 8.2x 8.0x
7.1x
3x
0x
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LTD 6/10
________________________________________________
Source: Dealogic and Wall Street research.
(1) Average for disclosed deals only.
(2) Excludes deals in financial services sector.
8
B. BAP Highlights
M&A Market Overview (Cont’d)
A diversified set of industries have contributed to 2010 1H M&A activity, with almost 50% of the
volume coming from the Americas
2010 1H M&A Activity by Region 2010 1H M&A Activity by Target Industry
Japan Media
Africa / Middle East High Technology
3.0% 5% Energy &
3.9% 6% Power
Real Estate 20%
7%
Asia‐Pacific 18.8%
Healthcare 8%
49.1% Americas
17% Industrials
12%
Telecom
25.2%
Europe 10% 15%
Consumer & Retail Financials
Total Volume: $1,065 billion
________________________________________________
Source: Thomson Reuters for 1H 2010.
9
B. BAP Highlights
BAP Market Overview
BAP continues to build an international franchise with lasting relationships with some of the world’s
most dynamic companies
 Over the past 5 years BAP has maintained and developed strong relationships with large clients, including substantial repeat business
• Increasing visibility through recent high profile assignments including GDF Suez, E.ON, AIG, Chinalco, P&G, Nestle, and Xerox
• Fees generated from large cap clients increased from 23% of the total in 2005 to 47% in 2009
 The group has expanded the number of international clients through expansion in Europe and Asia
• Opened London office in 2007
• Opened Hong Kong office in 2008
• Opened Paris office in 2009
• International revenue increased from 8% in 2005 to 32% in 2009
 Despite the downturn in the M&A market, BAP has continued to grow both its revenue base and personnel, more than doubling in
size since 2007 while maintaining strong profitability
• Added 19 new SMDs and MDs to the firm in the past two years
Personnel Growth Personnel Growth
(Total Professional Headcount) (SMDs and MDs)
160 50
120 40
138 42
121 30 36
80 95
20 27
40 69 21
51 10 17
0 0
2006 2007 2008 2009 Aug‐10 2006 2007 2008 2009 Aug‐10
10
B. BAP Highlights
BAP Market Overview (Cont’d)
In the past 5 years BAP has significantly increased its coverage of industries and geographies
Coverage Universe 2005 2010
 Consumer & Retail  Consumer & Retail  Chemicals

 Energy, Power & Utilities  Energy, Power &  Clean Technology
 FIG Utilities  Insurance
Industries  Media  FIG  Metals & Mining
 Real Estate  Media  Technology
 Telecom  Real Estate
 Telecom
 Mergers & Acquisitions  Mergers &  Structured Products
Acquisitions  Private Placements
 Financial Advisory
Products  IPO & Equity
Advisory
 Debt Advisory &
Restructuring
 New York  New York  London
 Atlanta  Atlanta  Hong Kong
 Boston
Geographies
 Menlo Park
 Paris
 Beijing
11
B. BAP Highlights
2009 and 2010 YTD Performance Summary
Despite a challenging macro environment, BAP recorded year‐over‐year growth in 2009 and is well
positioned for strong performance in 2010
 2009 highlights included:
• Year‐over‐year revenue growth, despite M&A market slowdown
• Added 4 new SMDs
• Geographic expansion with the opening of Paris office, increased German presence and
build‐out of Asia offices
• Bolstered capabilities in FIG, Chemicals, and Media
• Maintained strong revenue / SMD relative to competitors
 2010 achievements included:
• Top 10 ranking in M&A league tables in 1Q
• Strong pipeline of over 100 projects
• Diverse transaction base across industries and geographies
• Expanded European and Asian business
• Approximately 50% of deals have an international component
12
B. BAP Highlights
2009 and 2010 YTD Performance Summary (Cont’d)
BAP continues to diversify its business to fill global market opportunities while maintaining its
productivity
LTM BAP Revenue by Region LTM BAP Revenue by Industry
Asia‐Pacific Media
6% Energy & Power
High Technology 5%
18%
18%
Europe 24%
Real Estate, 1%
14% Industrials
Healthcare 10%
70% 3%
Americas Telecom 8% 23%
Consumer & Retail Financials
2009 Revenue per SMD(1) 2009 Revenue per Professional(1)
($ in millions) ($ in millions)
$8.0 $2.0
$7.8
$6.0 $1.5
$5.9 $1.4
$4.0 $1.0 $1.2
$2.0 $0.5
$0.0 $0.0
BAP Comp Average
BAP Comp Average
________________________________________________
(1) Source: 2009 10‐Ks for Evercore, Greenhill and Lazard’s advisory businesses.
13
B. BAP Highlights
Key Initiatives for 2011
BAP stands uniquely positioned and ready to capitalize on the global recovery, with a number of key
initiatives for 2011
 Recent trends suggest an increase in M&A volume in Fall 2010/2011
• Opening of credit markets has encouraged strategics and financials to pursue new deals
• Emerging market M&A is increasing; Blackstone’s international presence and strong brand allow it to benefit
 Continued turmoil and uncertainty at larger firms provides business and hiring opportunities for BAP
• Boutique M&A market share has increased over the past decade
• Major dealmakers at large banks have been moving to smaller advisory firms at record levels
 2011 areas of focus include:
• Europe: Germany and potential alliances for other jurisdictions (Eastern and Southern Europe)
• Growth in Asian presence, plus new expansion into Australia
• Further focus on BRIC markets
• Opportunistic expansion in select industry verticals
– Healthcare
– Natural Resources / Oil & Gas
– Industrials
• Globalizing major industry verticals, including FIG, Consumer Products
14
VI. Restructuring & Reorganization Advisory
A. Restructuring Group Overview
Restructuring and Reorganization Group at a Glance
The Restructuring and Reorganization Advisory Group is among the most accomplished and
experienced in its field
Established Leader in Restructuring Advisory
 Group formed in 1991
 Group headed by Tim Coleman
 Group has received numerous awards and recognition in recent years
Global Reach
 New York team comprised of 46 professionals – includes 6 SMDs, 7 MDs and 4 VPs
 London team comprised of 4 professionals – includes 1 SMD and 3 MDs, who report through BAP
 SMDs and MDs collectively have over 130 years of experience at Blackstone and over 215 years in restructuring
Wide Range of Advisory Services and Clients
Type of Service Company Creditor
Advise on in‐court reorganizations X X
Advise on out‐of‐court recapitalizations X X
Advise on exchange offers X
Raise debt and equity capital X X
Advise on distressed mergers and acquisitions X X
Advise on retiree healthcare issues X
Provide expert witness testimony X X
2
Highly Experienced Team
The Restructuring Group’s Senior Managing Directors have, on average, 18 years of industry
experience
Years of Relevant Year
Senior Managing Director Experience Prior Experience Joined BX
Tim Coleman 24  Citibank 1992
Group Head
Stefan Feuerabendt 16  Lehman Brothers 1998

 Hellmold Associates
Michael Genereux 9  Credit Suisse First Boston 2003

 Merrill Lynch
Flip Huffard 18  Hellmold Associates 1995

 Smith Barney, Harris Upham & Co., Inc.
Nick Leone 20  Salomon Brothers 1995

 Drexel Burnham Lambert
Steve Zelin 22  Ernst & Young 1998
3
Blackstone Restructuring Recognition
Blackstone’s restructuring advisory efforts have received substantial praise over recent years
Thomson’s International Financing Review
 Awarded “Restructuring Deal of the Year” in 2009 for the Ford Motor
Company tender offer and deleveraging transactions
 Awarded “Restructuring of the Year” in 2008 for the restructuring of
Credit‐Based Asset Servicing and Securitization LLC (“C‐BASS”)
 Named “North American Restructuring House of the Year” for the years
2004 and 2005
Turnaround Atlas Awards
 Awarded “Turnaround of the Year” ($5+ billion) and “Automotive Industry
& Services Deal of the Year” in 2010 for the restructuring of Ford Motor
Company
 Awarded “Turnaround of the Year” ($1+ billion) in 2010 for the SemGroup
Corporation reorganization
 Awarded “Corporate Turnaround Deal of the Year” ($500+ million) in 2010
for the restructuring of Merisant Company
 Awarded “Beverage, Food & Service Deal of the Year” in 2009 for the
reorganization of Mrs. Fields Companies
Turnaround Management Association
 Awarded “Mega Company Turnaround of the Year” in 2007 for the
Winn‐Dixie Stores reorganization
4
Restructuring and Reorganization Group Role
We provide clients a wide range of advisory services including, but not limited to, the following:
 Advise on out‐of‐court recapitalizations and in‐court reorganizations
• Develop strategic business plans, financial forecasts and liquidity forecasts
• Analyze complex legal and capital structures
• Perform complex valuation assignments
• Negotiate consensual solutions in complex and often contentious distressed situations
 Advise on exchange offers
 Advise on capital markets transactions, including raising all forms of capital
• Debtor‐in‐possession financing
• Secured financing
• Second lien
• Other subordinated debt and equity
 Advise on mergers, acquisitions and divestitures of assets or operations
• Divest businesses or other assets in court and out of court
• Advise on mergers and other combinations
• Advise buyers of distressed companies and distressed assets
 Advise on pension and retiree healthcare issues
 Provide expert witness testimony
5
Selected Restructuring Clients
Blackstone’s Restructuring Group is known for advising both companies and stakeholders in the
largest and most complex restructurings
Out‐of‐Court Assignments Chapter 11 Assignments Creditor Assignments
6
Broad Industry Expertise – 13 Top Industry Specialties
Healthcare / Retail /
Automotive
Medical Products Supermarkets
Real Estate /
Consumer Products Infrastructure
Casinos
Leisure /
Energy Steel
Entertainment
Manufacturing /
Financial Services Transportation
Basic Industry
Media /
Communications
7
B. Restructuring Market Trends
Current Environment Overview
The level of new restructuring activity has decreased in recent months due to the resurgence of the
credit markets
U.S. economy remains in a rough patch
 After increasing during the last few quarters, GDP growth rate decreased in 2Q(1)
 Unemployment rate seems to have peaked at around 10%, but appears stuck at around 9.7%(1)
• New initial jobless claims shot up to 500,000 in mid‐August, defying expectations, and while currently decreasing, still remain
above 450,000(1)
 Monthly housing starts increased earlier in the year but have decreased since April(1)
 Case‐Shiller housing price index hit a low in April 2009 and has remained relatively stable this year(2)
Credit markets rebounded in the second half of 2009 and have continued at an accelerated pace in 2010(3)
 Week of August 9, 2010: Record high‐yield weekly volume of $22.1 billion
 March 2010: Record high‐yield monthly volume of $40.5 billion
 April 2010: Second highest high‐yield monthly volume of $34.2 billion
 1Q 2010: Record quarterly high‐yield volume of $76.8 billion
 2009: Record yearly high‐yield volume of $180.7 billion
LTM high‐yield default rate peaked in 2009
 2009 default rate of 10.2%(4)
 JP Morgan forecasts a 2010 default rate of 2%(3)
________________________________________________
(1) Source: Global Insight via Blackstone Research.
(2) Represents an index of nominal resale prices for single‐family houses, indexed to 100 in the first quarter of 2000.
(3) Source: JP Morgan Credit Strategy Weekly Update as of 8/27/10.
(4) Source: JP Morgan Default Monitor.
9
U.S. Economy
The U.S. economy is still trying to recover
Real GDP Growth(1) Unemployment Rate and New Jobless Claims(2)
(Claims in thousands)
6% 11% 700
Jobless Claims
4% 10% 600
9% 500
2% 8% 400
0% 7% Unemployment Rate 300
6% 200
(2%)
5% 100
(4%) 4% 0
Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Aug‐10 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Aug‐10
Monthly Housing Starts Case‐Shiller Housing Price Index(3)
(Thousands)
1,200 190
1,000 175
800 160
600 145
400 130
Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Aug‐10 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Aug‐10
________________________________________________
Source: FRED and Bloomberg, unless otherwise noted.
(1) Real GDP growth includes a Bloomberg estimate of 2.5% for 3Q 10.
(2) New Jobless Claims are measured on a weekly basis.
(3) Represents an index of nominal resale prices for single‐family houses, indexed to 100 in the first quarter of 2000.
10
Credit Markets – New Issue Volume
The high‐yield market has opened up since 2Q 2009 and has become one of the strongest high‐yield
markets ever, creating refinancing opportunities for many companies that previously could not
access this market
New Issue Volume – Leveraged Loan(1) New Issue Volume – High Yield(3)
($ in billions) ($ in billions)
$200 $80
77
188
186
$150 $60
61
60
148
57
55
133
52
50
49
118
44
$100 $40
39
36
84
81
78
31
31
67
$50 $20
22
55
47
44
43
13
12
26
17
8
16
16
7
11
1
$0 $0
(4)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
(2) (2)
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
(3Q as of
________________________________________________
8/20/10)
Source: S&P LCD and JP Morgan Credit Strategy Weekly Update (8/20/2010).
(1) Includes both term loans and revolvers.
(2) 2008 includes $29.5 billion of block sales of 2007 overhang.
(3) Includes amounts unsold by underwriters and only U.S. dollar‐denominated securities.
(4) 3Q totals are as of 8/20/2010.
11
High‐Yield Issuance Used to Refinance
2010 is on pace to have one of the highest percentages of high‐yield refinancing volume in 15 years
80%
70% 72.2% 71.7% 72.0%

70.5%
60%
59.9%
50% 54.4%
40%
30% 32.9% 33.9% 33.8%
26.3%
20%
16.0% 16.9% 17.5%
10% 13.5%
9.0%
8.1%
0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
(As of
9/01/10)
________________________________________________
Source: JP Morgan Default Monitor as of 9/01/2010.
12
Upcoming High‐Yield and Leveraged Loan Maturities
While approximately one trillion dollars of high‐yield bonds and institutional leveraged loans are
expected to mature between 2011 and 2015, a number of companies have been able to push out
their maturities
High‐Yield Bond and Leveraged Loan Maturities as of 6/18/10
($ in billions)
$300
274
$200 250
$100 153 156 138

131 133
15 7 58 89 92 77 64 13
55 33 1
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 or Later
High‐Yield Bonds Institutional Loans
Change in Maturity Since End of 2008
($ in billions)
$120 141 141
$80
81 71 83
$40 17 12
30 13 43 40 41 ‐
$0 (25) (21) (28)
(13) (38) (49) (16) (36) (52) (13) (42) (25)
($40) (70)
(83)
($80)
2010 2011 2012 2013 2014 2015 2016 2017 2018 or Later
High‐Yield Bonds Institutional Loans Overall
________________________________________________
Source: JP Morgan Credit Strategy Weekly Update as of 6/18/10.
13
Upcoming High‐Yield and Leveraged Loan Maturities (Cont’d)
In general, smaller companies will experience maturity issues faster than larger companies
Percent of Total Outstanding Debt Maturing as of 4/9/10
by Year of Maturity and Size of Capital Structure
70%
60%
59.7%
50% 55.5% 53.8%
40% 46.0%
37.4%
30% 33.8%
27.4%
20% 23.8%
18.7% 16.6%
10% 12.4% 13.0%
0%
2010–2012 2013–2015 2016–2018
$300mm or Less $301mm to $999mm $1bn to $3bn $3bn and Greater
________________________________________________
Source: JP Morgan Credit Strategy Weekly Update as of 4/9/10.
14
High‐Yield Debt Issuance and Restructuring Cycles
New high‐yield debt financing and refinancing may only serve to defer rather than
prevent restructurings
 Restructuring cycles are driven largely by the high‐yield and the institutional leveraged loan markets
 Improving credit markets have allowed many distressed companies to defer restructuring
through refinancing
 While the high‐yield market appears to be a major contributor to the recovering capital markets and
the reduction in new restructuring assignments, it is most likely setting the stage for the next
restructuring cycle
 While maturities are important, a high percentage of defaults occur because of covenant breaches
and cash flow shortages
15
Timing of Defaults
Issuance of B‐ and CCC‐rated debt peaked in 2007
Lower Rated New‐Issue Volume
($ in billions)
Leveraged Loans(1) High‐Yield(2)
Amount % of Total Amount % of Total
Year (B/CCC rated) Issuance (B/CCC rated) Issuance
2002 $47.7 34.3% $2.3 3.4%
2003 37.7 22.7% 15.3 10.1%
2004 61.2 23.1% 32.6 20.6%
2005 90.3 30.6% 18.5 17.4%
2006 126.7 26.4% 31.1 20.9%
2007 165.9 31.0% 53.6 36.3%
2008 74.1 47.2% 13.7 26.0%
2009 44.2 58.9% 19.4 10.7%
2010(3) 68.6 38.7% 26.1 14.9%
________________________________________________
(1) Source: S&P LCD Leveraged Lending Review 2Q 10. Includes issues rated split B, CCC or NR (Not Rated).
(2) Source: JP Morgan Default Monitor. Includes issues rated Split B or below.
(3) 2010 Leveraged Loan amount is as of 2Q and High Yield issuance amount is YTD (9/01/10).
16
Percent of Defaults
Lower rated credits have a significant and predictable default cycle
Cumulative % Defaulted Debt by Credit Rating at
Issuance (Corporate bonds 1981–2009)
70%  Increased default rates typically follow
60%
CCC and Worse peaks in high‐yield debt issuance by
approximately three to five years
% Defaulted (Dollar Weighted)
50%
B  Historically, 48% of CCC / C rated debt
40%
defaults within five years of issuance
30%
BB
20%
10%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Years Since Issuance
BB B CCC / C
________________________________________________
Source: S&P Default, Transition, and Recovery: 2009 Annual Global Corporate Default Study and Rating Transitions (3/27/10). Percent of issues which subsequently
defaulted in the stated year following issuance.
17
Interest Rates
A low interest rate environment has enabled companies to maintain high leverage
8%
6%
4%
2%
0%
5/30/2000 9/10/2001 12/23/2002 4/4/2004 7/17/2005 10/28/2006 2/9/2008 5/22/2009 9/3/2010
3‐Month LIBOR U.S. Treasury – 10‐Year
________________________________________________
Source: Capital IQ.
18
High‐Yield Debt Issuance and Default Cycles
Peak Issuance, Low Default
Low Issuance, Peak Default
$250 12%
10%
$200
High‐Yield Issuance (billions)
8%
$150
Default Rate
6%
$100
4%
$50
2%
$0 0%
(1)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
High‐Yield Issuance Default Rate
________________________________________________
Source: For historical data, JP Morgan Default Monitor.
(1) Estimated 2010 high‐yield default rate of 2% and gross issuance of $230 billion reflects estimates in JP Morgan Credit Strategy Weekly Update as of 8/13/10.
19
Observations
 High‐yield new issue volume increased significantly in 4Q 2009 and has continued to be robust
• Over the past few months, many large companies were able to access the high‐yield debt market
in order to extend their debt maturities
• Smaller companies, however, did not have similar access to refinancing sources
 Low interest rates have helped companies remain highly levered
 The economy has certain structural problems that are likely to persist and potentially create
problems for companies expecting economic momentum to pick up materially
• High unemployment
• Lackluster GDP growth and retail sales as consumers deleverage
20
C. Conclusions
C. Conclusions
Conclusions
What does this mean for the current restructuring cycle?
 The dichotomy between a weak economy and robust capital markets could lead to a few different
possible scenarios:
• The current cycle could be on a temporary hiatus and could continue for quite a while
– Double‐dip scenarios still remain a possibility
– Consumer confidence has improved slightly but is still low
– High unemployment rates may persist into the future
– The housing sector could take years to recover from the current economic downturn
• The current restructuring cycle could be over, but significant high‐yield offerings could suggest the
cycle will begin anew in approximately 3 to 5 years (typical pattern after peak high‐yield issuance)
– Low interest rates may only delay inevitable liquidity issues facing struggling industries
• The current restructuring cycle could be over and the next cycle could begin as historical patterns
would predict (typical restructuring cycle is 8 to 10 years)
– The stimulus plan could turn the economy around
– Refinancing done at reasonable rates could provide manageable interest payments
22
Appendix: Select Case Studies
Ford Motor Company
Company Overview Work Plan
 Ford retained Blackstone in January 2009 to advise on various
deleveraging transactions
 During the ensuing months, Blackstone:
• Assisted Ford on structuring two tender offers and a 3(a)9 exchange
designed to reduce unsecured indebtedness and alleviate near‐term
secured maturities
 Ford Motor Company (“Ford” or the “company”) designs, develops,
• Analyzed Credit Agreement and Indentures and determined legal
manufactures and services cars and trucks worldwide
means of executing transactions using FMCC cash
• Company has significant international operations throughout Europe, • Built comprehensive recapitalization and financial models to analyze
Asia, and South America the impact of the transactions on Ford’s capital structure, liquidity,
 Ford Motor Credit Company (“FMCC”) provides retail and wholesale credit profile and equity value
automotive financing products to dealers, customers and leasing • Assisted company in evaluating alternatives to equitize claims under
companies worldwide Voluntary Employee Beneficiary Association
• Assisted the company in developing and presenting its debt
Background Issues restructuring plan to the UAW, government and key stakeholders
• Assisted the company in developing a comprehensive
 As of March 3, 2009, Ford was highly levered, with over $35 billion of communications and public relations strategies
debt and over $1.8 billion of annual interest expense • Assisted company in executing transactions serving as Restructuring
 Ford’s existing debt traded at severely discounted prices due to the bleak Co‐Advisor, Structuring Agent and Global Lead Dealer Manager for
macroeconomic and automotive outlook as well as expectations of the Unsecured tender offer and Auction Agent for the Term Loan B
continued cash burn. As of March 3, 2009: Dutch Auction
• Secured Term Loan traded between $30.00–$32.00 Final Outcome
• Unsecured Notes traded between $18.00–$20.00  On April 3, 2009, the company successfully tendered for $2.2 billion of
• Convertible Notes traded between $20.00–$22.00 Secured Term Loan and $3.4 billion of Unsecured Bonds and
successfully exchanged cash and stock for $4.3 billion of Unsecured
 The Treasury mandated that General Motors and Chrysler, as a result of
Convertible Notes
accepting government loans, reduce unsecured indebtedness by at least
 As a result of this complex set of transactions, Ford reduced its total
two thirds by March 31, 2009
indebtedness by $9.9 billion and eliminated $556 million of annual
• Ford decided to execute its own balance sheet restructuring to interest expense with $2.4 billion of cash and 468 million shares of
remain competitive with other domestic OEMs and improve its Ford stock
financial profile to ensure long‐term viability  The company remains the only domestic automaker to avoid accepting
 In addition to having a multi‐layered capital structure, Ford had a number government loans and has been praised by the White House as well as
of legal and practical restrictions on the use of cash, incurrence of members of the House and Senate for executing an extremely
indebtedness and ability to grant additional liens which complicated its successful balance sheet and operational restructuring without any
balance sheet restructuring government assistance
24
Xerox Corporation
Company Overview Work Plan
Blackstone advised on an overall restructuring of Xerox’s capital structure.
The financing work included:
 Extensive due diligence, including meetings with operational and finance
groups in Europe, South America, and North America
 Creation of detailed financial forecast with flexibility to analyze:
• Impacts of various operating assumptions and cash sources and uses
by geography
 Xerox is a leader in the global document market. The company develops, • Effects of various financing and restructuring proposals, including
manufactures, markets, services and finances a range of document transition to third‐party customer financing
equipment, software, solutions and services  Identified additional financing to fund liquidity crisis as Xerox undertook
major asset sales and shut down negative cash flow operations
 Xerox operates in over 130 countries worldwide, and distributes its
 Development of various restructuring alternatives including analysis of
products in the Western Hemisphere through divisions, wholly owned
legal and corporate structure
subsidiaries and third‐party distributors
 Assisted in the negotiation and structuring of capital market transactions
consistent with legal and corporate structure
Background Issues
 Xerox faced various issues beginning in mid‐1999 including:
Final Outcome
• Execution issues consolidating customer administration centers
• Difficult execution of a major sales force realignment  In July 2002, Blackstone negotiated a new $4.2 billion credit agreement
satisfactory to Xerox and creditors, avoiding bankruptcy
• SEC investigation into accounting issues at Mexican division
• Obtained 100% approval of entire 59‐member bank group
 In May 2000, Xerox’s credit rating was downgraded and subsequently lost
access to the commercial paper financing market – a primary financing • Achieved terms that preserved adequate liquidity
source • Implemented creative solution that allowed the refinancing to close
• By October 2000, Xerox had $5.4 billion of commercial paper prior to the resolution of an SEC investigation and restatement
outstanding which would rapidly come due over the course of three  In February 2003, Blackstone assisted in the negotiation and execution
months of $3.6 billion of new financing, which refinanced the outstanding
 With this backdrop, Xerox hired Blackstone to assist in formulating a amounts under the credit agreement:
restructuring and financing plan • Secured credit facility and senior notes
• Mandatory convertible preferred stock and new common stock
 In 2009, Blackstone’s Advisory Group advised Xerox on its $8.3 billion
acquisition of Affiliated Computer Services
25
VII. GSO Credit Platform
GSO Capital Partners Overview
 $28.6 billion(1) in total AUM
Global Leader in Credit  Exclusively focused in the leveraged finance marketplace
 Diversified mix of investment strategies
 Strong performance across strategies
Outstanding Track Record  Proven track record of achieving returns with lower volatility
 GSO / Blackstone platform creates unique opportunities
 Senior partners have worked together for over a decade and together
have built the leading leveraged finance franchise on Wall Street
World Class Organization
 Strong brand recognition on global basis
 Over 160 professionals worldwide
 Strong fundraising momentum across strategies
Strong Business Momentum and  Our Institutional Limited Partner base is a strategic asset
Huge Market Opportunity
 Investors are actively seeking credit‐oriented strategies managed by a
market leader in today’s environment
________________________________________________
(1) Excludes AUM related to the Blackstone Distressed Debt Hedge Fund, which Blackstone began liquidating in 2008.
1
GSO Total AUM Organization Chart – As of 6/30/10
Global footprint with approximately 160 professionals in New York, London, and Houston
GSO Capital Partners
AUM $28.6 billion(1)
Private Market Strategies Public Market Strategies
Capital Customized Credit
Opportunities / Special Situations Strategies
Capital Solutions
(Rescue Lending Fund)
Blackstone Fund (CLOs / Permanent
Mezzanine (Credit Hedge Fund) Capital Vehicles /
(Mezzanine Funds) Separate Accounts)
$2.8 billion $3.3 billion $3.1 billion(1) $19.4 billion
________________________________________________
2
Strategic Objectives
 Maintain our investment excellence
• Continue our strong performance across funds
 Create roadmap to $40 billion AUM enterprise
• Aspirational goal, with acquisitions, could get to $50 billion
 Develop a “retail brand” in the credit space
• Breakout potential in new Permanent Capital Vehicles and our existing products
 Transform our CLO business into a long‐only platform
• Industry‐leading track record
• Diverse array of new products to be launched
 Achieve the following:
• 30% GSO Net Fee Margin
• $300 million of Pre‐Tax, Economic Net Income
3
GSO’s Competitive Advantage

 Better access to information and deal flow
Better Access to Information and Deal Flow
 High Priority Client to Wall Street
High priority client to Wall Street
Scale
Scale  One of Few Players that can Commit to $200 million + in a Transaction
 One of few players that can commit to $200+ million in a transaction
 Ability to Leverage Blackstone’s “Intellectual Library” and Private Equity
 Ability to leverage Blackstone’s “intellectual library”
Expertise and Private Equity
expertise
 Credit and due diligence skills
 Deep industry / sector knowledge
Unparalleled Expertise  Unique origination capability – “problem solving” approach
 Collective investment experience results in a time‐tested, rigorous
investment process
 Track record of generating superior risk‐adjusted returns through
Track Record disciplined credit selection, structuring and risk management
 Achieved our returns with significantly less volatility than our benchmarks
4
Performance Review – Hedge Fund
Superior risk‐adjusted Return – Cumulative Special Situations Returns Since Inception(1)(2)
Cumulative Net Returns Since Inception(1)(3) Sharpe Ratio Since Inception(1)(3)
35% 0.45
31.7% 0.41
30%
0.36
25%
0.32
23.6%
0.27
20% 21.3%
0.24
15% 16.8%
0.18
10%
0.09
5%
0.07
0% 0.00
GSO Special Tremont Event HFRI Fund Credit Composite GSO Special Tremont Event HFRI Fund Credit Composite
Situations Fund Driven Distressed Weighted Index Situations Fund Driven Distressed Weighted Index
LP Index Composite Index LP Index Composite Index
GSO has outperformed our Credit Composite Index by
...with superior risk‐adjusted returns
1,500 bps since inception…
________________________________________________
Note: Please refer to the footnotes on page 14.
5
Performance Review – Mezzanine Fund
GSO Capital Opportunities Fund I has meaningfully outperformed market indices
Annualized Net Returns (July 1, 2007 – June 30, 2010)
15%
14.5%
10%
5%
5.7%
0% 1.6%
(5%)
(9.8%)
(10%)
(14.1%)
(15%)
GSO Capital Credit Suisse Credit Suisse S&P 500 Index Credit Suisse
Opportunities Fund I High Yield Index Leveraged Loan Index Leveraged Equity Index
________________________________________________
Note: Please refer to the disclosures on page 14.
6
Performance Review – Rescue Lending Fund
Our Rescue Lending Fund is off to a great start. The current portfolio has generated total gains of
$106 million and is marked at 1.2x MOIC as of June 30, 2010
Portfolio Performance (as of 6/30/10) Backlog
Fund Inception: 9/30/09  Two investments pending for approximately
$300 million
Fund Size: $3.25 billion
 Broad set of opportunities we are currently
Number of Investments: 7 pursuing in the U.S. and Europe
Capital Deployed: $589.6 million  Prospective investments are in a variety of

industries (i.e., Leisure, Manufacturing, Energy
Realized / Unrealized Value: $695.7 million and Homebuilding)
 Generally, investment targets are: (1) Middle
Market companies; and (2) good businesses
Multiple of Invested Capital: 1.2x
facing liquidity / refinancing issues
________________________________________________
Note: Past performance is not necessarily indicative of future results, and there can be no assurance that the Fund will achieve comparable results or that the Fund
will be able to implement its investment strategy or achieve its investment objectives.
7
Performance Review – CLO Business
12‐Year U.S. Track Record – Consistent CLO Outperformance
June 1998 – March 2010
Total Return Average Annual Default Rate
100% 4.0%
90.75% 3.55%
75% 3.0%
74.87%
50% 2.0%
25% 1.0%
0.96%
0% 0.0%
GSO / Blackstone S&P Lev Loan Index GSO / Blackstone S&P LCD US Lev Loan
Average Recovery Rate Average Annual Principal Loss Rate
72% 1.5%
68% 69.55% 1.31%

1.0%
64%
62.98% 0.5%
60%
0.29%
56% 0.0%
GSO / Blackstone S&P LCD US Lev Loan GSO / Blackstone S&P LCD US Lev Loan
________________________________________________
Source: Standard & Poor’s LCD.
Note: Please refer to the disclosures on page 14.
8
GSO AUM Growth Since Inception(1)
($ in billions)
$30 $28.6
$24.1
$25
$21.9
$19.7
$20
$19.4
$15 $13.7 $16.6

$15.3
$13.7
$9.4
$10 $8.7
$3.3
$5.8 $3.2
$5 $1.9 $3.4 $2.8
$1.6 $1.1
$1.4
$2.2 $3.4 $4.1 $3.2 $3.1 $3.1
$0
2005 2006 2007 2008 2009 2Q'10
Multi‐Strategy Hedge Fund Assets Private Distressed Funds
Mezzanine Funds Customized Credit Strategies
________________________________________________
9
Evolution of the GSO Franchise
Comparison of Selected Business Metrics
2005(1) 2010 (Estimated)
# of fund products 2 12
# of SMAs 1 7
# of CLOs 10 25
# of fund LPs ≥ $25 million 19 100
Top 10 LPs as a % of total AUM 42% 18%
% of capital locked up 41% 90%+
Assets under management ($ in billions) $3.6 $28.6(2)
Products offered Hedge Funds, CLOs, SMAs Hedge Funds, CLOs,

SMAs, Mezz Funds,
Distressed Rescue Funds,
BDCs, Closed End Funds,
Co‐Mingled Loan Funds
________________________________________________
(1) 2005 data reflects only those businesses which were managed by GSO at the time, and is not pro forma for the Blackstone Transaction.
10
Evolution of the GSO Franchise
“Cross Fertilization” of LP Base
($ in millions)
Hedge Mezzanine Liquidity Capital Customized
Account Fund Fund Fund Solutions Credit Strategies Total
State Pension (A) 102 ‐ ‐ 600 ‐ 702
State Pension (B) ‐ 200 250 100 ‐ 550
Financial Institution (A) 211 200 62 ‐ ‐ 473
Insurance Company (A) 23 260 100 ‐ ‐ 383
Fund of Funds (A) 144 ‐ 225 ‐ ‐ 369
State Pension (C) ‐ 100 ‐ 250 ‐ 350
Fund of Funds (B) 151 ‐ 33 ‐ 52 236
Sovereign Wealth (A) ‐ 135 15 75 ‐ 225
Foundation (A) 40 75 75 ‐ ‐ 190
Sovereign Wealth (B) ‐ 75 65 50 ‐ 190
Financial Institution (B) ‐ 161 5 16 ‐ 182
Foundation (B) ‐ ‐ 144 25 ‐ 169
Family Office (A) ‐ ‐ 63 ‐ 75 138
Insurance Company (B) 66 50 ‐ ‐ ‐ 116
Family Office (B) 69 10 20 ‐ ‐ 99
Fund of Funds (C) 77 ‐ 12 ‐ ‐ 89
Endowment (A) 23 30 35 ‐ ‐ 88
Family Office (C) ‐ 10 75 ‐ ‐ 85
11
The Case for “Junk” Credit
GSO’s products offer investors extremely attractive risk‐adjusted returns relative to other asset
classes in this market environment
Current Conditions Why Credit?
 Economic uncertainty  Ability to invest more senior in a capital
structure provides downside protection
 Historically low interest rates and large
cash balances  Investors will rotate out of cash in favor
of higher yielding investments with strong
 Committed capital remains scarce
current income
 GSO’s private market strategies of
 Market volatility likely to persist providing debt capital to companies
commands significant premium
 Long / Short, Event‐Driven credit
strategies help mitigate volatility and
drive value creation
12
Looking Forward
 Highly scalable business model
• Top quartile track record
• Great brand
• Team‐oriented culture
• First class operating platform
 Blue Chip list of LPs
• We’ve earned very good standing with a diverse array of institutions
• Excellent growth prospects with international LPs
 Industry consolidation will lead to potential opportunities
• GSO is a very attractive partner
 “Junk Credit” is emerging as a stand‐alone asset class
• Fixed Income departments beginning to make specific allocations
• Retail investors have insatiable appetite for yield
 Breakout opportunity for GSO
• Inflection point of our growth curve
• Our strategic plan calls for substantial AUM growth and expansion of our profitability over the
next 2 ½ years
13
Performance Review Footnotes and Disclosures
Performance Review: Hedge Fund
(1) Net performance from January 2006 (first full year of the Fund) through June 2010.
(2) The volatility of the indices reflected above and elsewhere in this report may be materially different from the performance of the Fund. In addition, these indices employ different investment
guidelines and criteria than the Fund; as a result, the holdings in the Fund may differ significantly from the securities that comprise the indices. The performance of these indices has not necessarily
been selected to represent an appropriate benchmark to compare to the performance of the Fund, but rather is disclosed to allow for comparison of the Fund’s performance to that of well‐known,
relevant indices. A summary of the investment guidelines for these indices is available upon request.
(3) Credit Composite Index reflects the average portfolio construction since inception which consists of the following mix of indices: 60% CS Leveraged Loan Index, 25% CS High Yield Index and 15% CS

Leveraged Equity Index which we believe is generally consistent with the mix of the Special Situations Fund.
Performance Review: Mezzanine Fund
Credit Suisse High Yield Index is an unmanaged market value‐weighted index designed to mirror the investable universe of the U.S. dollar‐denominated high yield debt market. New issues are added to the
index upon issuance if they qualify according to the following criteria: issues must be publicly registered in the United States or issued under Rule 144A with registration rights; issues must be rated “B” or
lower; the minimum amount outstanding is $75 million; and issues must be U.S. dollar‐denominated straight corporate debt, including cash‐pay, zero‐coupon, stepped‐rate and pay‐in‐kind (PIK) bonds.
Floating‐rate and convertible bonds and preferred stock are not included; if an issuer has more than two issues outstanding, only the two most liquid issues are included in the index.
Credit Suisse Leveraged Loan Index is an unmanaged market value‐weighted index designed to mirror the investable universe of the U.S. dollar‐denominated leveraged loan market. New issues are added to
the index on their effective date if they qualify according to the following criteria: loan facilities must be rated “B” or lower; only fully‐funded term loan facilities are included; and issuers must be domiciled in
developed countries.
Standard & Poor’s 500 Index (the “S&P 500”) sets forth the performance of a well‐known broad‐based stock market index assuming reinvestment of dividends. The S&P 500 contains only publicly traded,
seasoned equity securities.
Credit Suisse Leveraged Equity Index is an unmanaged market‐weighted index designed to mirror the investable universe of the public equity of issuers in the high yield debt market. The index includes the
common stock of every issuer in the Credit Suisse High Yield Index which has public equity.
There are significant differences between the GSO Capital Opportunities Fund I’s investments and the indices. For instance, GSO Capital Opportunities Fund I may use leverage and invest in investments
that have a greater degree of risk and volatility, as well as less liquidity, than those investments contained in the indices. Moreover, the indices do not reflect the reinvestment of income or dividends and
the indices are not subject to any management fees, performance compensation or expenses. It should not be assumed that GSO Capital Opportunities Fund I will invest in any specific investments that
comprise the indices, nor should it be understood to mean that there is a correlation between GSO Capital Opportunities Fund I’s returns and the performance of the indices. The statistical data regarding
these indices has been obtained from sources believed to be reliable. It is not possible to invest in these indices. These indices are being presented for comparison purposes only to show how GSO Capital
Opportunities Fund I’s performance compares to the broad global markets.
Performance Review: CLO Business
Past performance is not necessarily indicative of future results, and there can be no assurance that the Fund will achieve a comparable composition or that the Fund will be able to implement its
investment strategy or achieve its investment objectives. Unless otherwise indicated, all yields and rates of return are presented on a “gross” basis and do not reflect the management fees, fund expenses,
organizational expenses, performance compensation, taxes and other related expenses that are borne by investors in the portfolios described herein which, in the aggregate, are expected to be substantial
and may result in “net” returns being materially lower than those presented herein. Investors are encouraged to contact GSO representatives to discuss any questions they may have concerning the
performance information contained herein. Further information may be made available to such investors upon request.
14
VIII. Real Estate
A. Real Estate Overview
Blackstone Real Estate Overview
Global Leader in Real Estate  $22 billion in AUM from Opportunistic funds
Private Equity  $2 billion in AUM from Real Estate Debt funds
 Gross IRR of 37.5% (28.3% net) on realized / partially realized investments(1)
 Multiple on Invested Capital (“MOIC”) of 2.2x on realized / partially realized
Outstanding Track Record
investments
 We project all 2004–2007 vintage funds will be profitable
Significant Dry Powder  $11.2 billion in total available capital ($1.4 billion in pending transactions)
 U.S. office portfolio concentrated in Boston, West Los Angeles, Northern
California, and New York
Current Holdings  Global hotel owner / operator
 European leisure parcs, hotels, student housing, and healthcare
 Existing Portfolio: 76% North America, 16% Europe, and 8% other
 Over 120 Real Estate professionals across the U.S., Europe, and Asia
World Class Organization
 Partners with an average tenure at Blackstone of 12 years
________________________________________________
All figures are as of June 30, 2010.
Note: Past performance is not necessarily indicative of future results for Blackstone Real Estate Partners “BREP” funds. There can be no assurance that any fund will
achieve its objectives or avoid losses.
(1) Gross IRR for fully invested BREP funds since inception, including unrealized investments, is 29.7%; net is 15.9% .
2
Real Estate – Projected Performance
We expect to outperform competitors with similar vintage funds
Total Expected
($ in billions) Vintage Fund Size Gross MOIC(1)
BREP VI 2007 – Present $11.0 2.0x– 2.5x
BREP V 2006 – 2007 $5.2 1.5x– 1.6x
BREP Europe III 2008 – Present $4.1 2.0x– 2.5x

Projected
Performance
BREP IV 2004 – 2006 $2.7 1.5x– 1.6x
BREDS(2) 2008 – Present $2.0 1.5x– 1.7x
BREP Intl II 2006 – 2007 $1.7 1.2x– 1.4x
Co‐Investment 2007 – Present $1.1 2.0x– 2.5x

________________________________________________
(1) While Blackstone currently believes that the assumptions on which these projections are based are reasonable under current circumstances, there is no
guarantee that the conditions on which such assumptions are based will materialize or otherwise be applicable to these funds. There can be no assurance that
any fund managed by Blackstone will be profitable or avoid substantial losses. Above projections do not include any assumptions regarding investment time
horizon or the rate of return on funds managed by Blackstone. Ultimate returns to investors will be reduced by management fees, fund expenses and carried
interest.
(2) BREDS includes several debt funds and investment vehicles that have similar investment objectives.
3
BREP Strategy Historically
Primary reasons for expected outperformance
 Sold $60 billion of assets 2005–2007
 Focused on top quality assets
 Avoided debt cross‐collateralization / Fund‐level recourse
 Virtually no commercial development
 Deployed limited capital 2H 07–1H 09
 Purchased or extended $24+ billion in portfolio company debt
 No material realized losses to date
4
Active Opportunistic Funds’ Valuation and Investment Pace
Existing portfolio has begun to improve while at the same time there has been a significant increase
in investment pace
BREP VI and BREP Europe III Unrealized Quarterly MOICs
1.2x
1.2x 1.2x
0.9x 1.1x
0.9x
0.6x 0.7x
0.6x 0.7x
0.3x 0.5x 0.5x 0.5x
0.0x
1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010
BREP VI and BREP Europe III Committed Capital by Quarter(1)
($ in millions)
$1,500
$1,000 $1,219
$500
$86 $435 $409
$0 $179
1Q 2008 2Q 2008 3Q 3008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010
________________________________________________
(1) Committed capital figures may adjust at time of actual closing of an investment due to a multitude of factors.
5
Real Estate Assets Under Management
Real Estate AUM has increased almost 30% over the past year
Blackstone Real Estate Total AUM
($ in millions)
$28,000
(1)
$2,300
$1,918
$21,000
$792
$14,000 $26,222
$22,004
$19,403 $20,195
$7,000
$0
June 30, 2009 June 30, 2010
BREP BREDS Bank of America (Merrill Lynch ‐ Asia) ‐ Pending
________________________________________________
(1) Includes pending Bank of America (Merrill Lynch ‐ Asia) transaction expected to close in the 4th quarter 2010.
6
Investment Activity
Blackstone Real Estate has invested or committed to invest over $4 billion over the past year(1)
 Broadgate Estate – Premier London office complex
Leveraged Public  Busch Entertainment Corporation – Sea World / Busch Gardens theme parks

Companies  Glimcher JV – Two large regional malls
 Portfolio of industrial assets – Pending
 General Growth Properties – Leading regional mall owner / operator – Pending
Bankruptcy  Sunwest – Large portfolio of assisted and independent living facilities

Situations
 Extended Stay Hotels – Largest owner / operator of mid‐scale extended stay hotels in the
U.S. – Pending
 Highland Hospitality – Senior mezzanine loan on a portfolio of 29 hotels
 Montgomery / Washington – Note on San Francisco office building
Distressed Debt
 Japanese Distressed Loans – Non‐performing real estate loan portfolio
 Various Notes – Notes at significant discounts to face value
Real Estate Debt
Strategies  BREDS has invested approximately $1.0 billion in public and private debt markets
(“BREDS”)
________________________________________________
(1) Includes approximately $500 million in transactions post June 30, 2010.
7
Available Capital
$11.2 billion in dry powder in a favorable investment environment
($ in millions)
BREP VI BREP Europe III Reserves BREDS
$1,404
Pending BREP Intl I
Transactions
BREP Intl II
BREP V
$ 3,920 $ 1,135 $ 435

$ 5,718
________________________________________________
8
B. Real Estate Market Overview
Real Estate Demand
Employment, the key driver of real estate demand, has turned modestly positive
Monthly Change in U.S. Payrolls(1)
(in thousands)
300
100
(100)
(300)
(500)
(700)
(900)
Feb‐07 May‐07 Aug‐07 Nov‐07 Feb‐08 May‐08 Aug‐08 Nov‐08 Feb‐09 May‐09 Aug‐09 Nov‐09 Feb‐10 May‐10 Aug‐10
________________________________________________
(1) Bureau of Labor Statistics: September 2010 Total Private Non‐Farm Payrolls (Seasonally Adjusted).
10
Real Estate Supply
New supply of commercial real estate is at record low levels
U.S. Aggregate Construction Starts(1)
(Annualized)
4.5%
4.0%
3.5%
3.0%
2.5%
Long‐term Average = 1.9%
2.0%
1.5%
1.0%
0.5%
0.0%
Mar‐84
Mar‐86
Mar‐88
Mar‐90
Mar‐92
Mar‐94
Mar‐96
Mar‐98
Mar‐00
Mar‐02
Mar‐04
Mar‐06
Mar‐08
Mar‐10
________________________________________________
(1) Source: Citi, September 10, 2010.
11
Real Estate Occupancy
Given supply / demand fundamentals, occupancy in U.S. real estate is beginning to improve
U.S. REIT Occupancy(1)
94.5%
94.0%
93.5%
93.0%
92.5%
92.0%
91.5%
91.0%
90.5%
90.0%
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
________________________________________________
12
Real Estate Cash Flows
Improving occupancy and bottoming rents translate into stabilizing real estate cash flows
U.S. REIT Change in Same Store NOI(1)
7%
6%
5%
4%
3%
2%
1%
0%
‐1%
‐2%
‐3%
2Q99 2Q00 2Q01 2Q02 2Q03 2Q04 2Q05 2Q06 2Q07 2Q08 2Q09 2Q10
________________________________________________
(1) ISI Group: September 2010.
13
Hotel Market Overview
The hotel sector has begun to see a sharp up‐tick in revenue with new supply at all time lows
U.S Hotel YoY % Change in Occupancy, ADR & RevPAR(1)
10%
0%
‐10%
‐20%
‐30%
6/06 11/06 4/07 9/07 2/08 7/08 12/08 5/09 10/09 3/10 8/10
Occupancy ADR RevPAR
U.S. Hotel Rooms Under Construction(2)
(in thousands)
250
200 Peak‐to‐Current
Decline: (72%)
Rooms
150
100
50
0
6/06 11/06 4/07 9/07 2/08 7/08 12/08 5/09 10/09 3/10 8/10
________________________________________________
(1) STR Research: September 4, 2010.
(2) STR Research: August 31, 2010.
14
Office Market Overview
New U.S. Office supply remains well below historical levels, while a modestly positive trend in net
absorption is beginning to form
U.S. Office Net Absorption as a % of Inventory(1)
1.1%
0.8%
0.5%
0.2%
‐0.1%
‐0.4%
‐0.7%
‐1.0%
2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010
New U.S Office Square Footage Under Construction(2)
(SF under Construction in thousands)
180,000
160,000
140,000
120,000 Long‐term Average = 3.1%
100,000
80,000 0.7%
60,000
40,000
20,000
0
2Q 1997 2Q 1998 2Q 1999 2Q 2000 2Q 2001 2Q 2002 2Q 2003 2Q 2004 2Q 2005 2Q 2006 2Q 2007 2Q 2008 2Q 2009 2Q 2010
________________________________________________
(1) Jones Lang LaSalle: June 30, 2010.
(2) ISI Group: June 30, 2010.
15
Real Estate Debt Markets
CMBS spreads and REIT unsecured spreads have tightened dramatically from their late 2008
panic levels
AAA CMBS Spreads(1) REIT Unsecured Debt Spreads to Underlying Treasuries(2)
(Spread in bps) (Spread in bps)
1,400 1,800
1,600
1,200
1,400
1,000
1,200
800 1,000
600 800
600
400
400
200
200
0 0
Aug‐07
Aug‐08
Aug‐09
Aug‐10
Apr‐07
Dec‐07
Apr‐08
Dec‐08
Apr‐09
Dec‐09
Apr‐10
Apr‐07
Aug‐07
Dec‐07
Apr‐08
Aug‐08
Dec‐08
Apr‐09
Aug‐09
Dec‐09
Apr‐10
Aug‐10
10‐year CMBS
________________________________________________
(1) Bank of America Merrill Lynch Global Research: August 20, 2010.
16
Public Real Estate Values
Public real estate equity markets have recovered sharply from their 2009 troughs
 Public office companies in top markets currently trade below a 6% cap rate:
Total % Change
in Stock Price Implied Public
Since 3/31/09 Market Cap Rate(1)
Boston Properties 147% 5.2%
Brookfield Properties 169% 6.4%
Douglas Emmett 131% 6.1%
SL Green 488% 5.8%
Weighted Average 209% 5.6%
 Leading public hotel companies currently trade at a weighted average of 17.0x multiple:
Total % Change
in Stock Price TEV / 2010E
Since 3/31/09 EBITDA(2)
Host Hotels 271% 17.5x
Marriott International 121% 15.7x
Starwood Hotels 306% 17.7x
Weighted Average 210% 17.0x
________________________________________________
Note: The above is a sample of public REITS and reflects Blackstone’s current view of the market place.
(1) Green Street Research: September 14, 2010.
17
Private Real Estate Values
Private real estate values have recovered approximately 40% from their 2009 lows, aided by
extremely low interest rates
Commercial Property Price Index (1)
100.0
100
90
77.2
80
70
61.7
60
50
40
Dec‐97 Dec‐98 Jan‐00 Feb‐01 Mar‐02 Mar‐03 Apr‐04 May‐05 Jun‐06 Jun‐07 Jul‐08 Aug‐09 Aug‐10
________________________________________________
(1) Green Street Advisors: August 2010 Unleveraged Commercial Property Price Index.
18
U.S. Real Estate Debt Markets
Despite generally improving conditions, significant opportunity exists for investment in commercial
real estate given the volume of problem loans in the system coupled with limited new financing
Troubled CMBS Loans by Vintage(1)
45% 41.0%
35% 33.4%
29.4%
21.5% 23.5%
25%
15%
5%
2003 2004 2005 2006 2007
Watchlist 30+ Days Delinquent & at Special Servicer
U.S. CMBS Issuance(2)
($ in billions)
$250
$200 $230
$202
$150 $169
$100
$50 $78 $93
$52 $12 $2 $3
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD
________________________________________________
(1) Source: CS Market Watch, August 25, 2010.
(2) JPMorgan “CMBS Weekly Report”: August 20, 2010.
19
U.K. Real Estate Debt Markets
Similar to the U.S., the sharp increase in leverage prior to 2008 presents a significant investment
opportunity in Europe
Total Stock of Outstanding U.K. Commercial Real Estate Debt
(£ in billions)
£250
£200
Over 2.5x
£150
£100
£50
£0
2002 2003 2004 2005 2006 2007 2008
________________________________________________
Source: “The UK Commercial Property Lending Market”, De Monfort University.
20
C. Blackstone Real Estate Outlook
New Business Initiatives – BREDS
BREDS was a natural and successful addition to the Real Estate platform
 Opportunity to generate equity‐like returns with debt‐like risks
Strategy  Highly complementary to Opportunistic business
Overview  Platform has great potential for scalability
 $2 billion of AUM in two years
BREDS Investment Target BSSF II Return Summary(1)
$100 Original Value
$100 45%
$90 $25 Original Equity 40%
34.2%
$80 35%
$70 Value
$70 30% BSSF II
$60 $17.5 Equity
Gross 22.3%
25%
$50 $15.0 Mezz or BREDS 20%
Returns
$75 Original Debt B‐Note Financing Target
$40 BSSF II
15%
$30 Net
$37.5 Senior 10% Returns
$20
Debt 5%
$10
$0 0%
Peak Current Gross Net
Inception to Date (Cumulative)
________________________________________________
(1) This chart represents the preliminary unaudited cumulative internal rate of return (“IRR”) of Blackstone Real Estate Special Situations Fund II L.P. and Blackstone
Real Estate Special Situations Europe Fund Ltd. (together, “BSSF II”). BSSF I’s inception‐to‐date gross return is 40.3% (net 30.7%). Past performance is not
necessarily indicative of future results.
22
New Business Initiatives – Asia
BREP has the opportunity to significantly increase its presence in Asia
 In 2007 Blackstone Real Estate opened offices in Mumbai, Tokyo, and Hong Kong staffed with
seasoned investment professionals from New York, London, and the region
 Deployed limited capital before market decline
 Invested approximately $500 million in the region post‐September 2008
 Blackstone has entered into an agreement to manage approximately $2 billion in real estate assets
from Bank of America / Merrill Lynch Asia
Why:
• Grows on‐the‐ground presence
• Expands local relationships
• Provides better market knowledge
• Widens lender contacts
• Increases Limited Partner base
23
Blackstone Real Estate Summary
Our business is extremely well positioned
 We expect to outperform competitors and produce solid returns for our Limited Partners
 Competitive landscape has been altered with fewer General Partners competing for new
investments and fundraising dollars because of legacy and/or parent company issues
 The current investment environment is highly attractive with $11+ billion in dry powder; we have
unique position for large, complex real estate investments
 Opportunity to substantially increase BREDS platform and Asian investment business
 Stable long‐term management fee base
 Significant carried interest potential from existing funds
24
IX. Blackstone Alternative Asset Management (“BAAM”)
Where are Hedge Funds Today?
Hedge Funds in the Current Market Landscape
 Volatility and uncertainty – Long / short investment mandates typically better equipped to handle market uncertainty than long‐only
 Talent migration – Economics and regulatory changes continue to attract top talent to the industry
 Institutional acceptance – Institutions increasingly implementing hedge funds across the investment portfolio
 Growth potential – Hedge funds still manage only a small fraction of investable assets
Hedge Funds Manage Just a
The Potential for Attractive Risk‐adjusted Performance Has Led to Fraction of Financial Assets and the
Growth in Hedge Fund Assets Over Time Industry Has Room to Grow
($ in billions) ($ in trillions)
$2,000 $200
$1,868
$1,600 $160 $178.0
$1,600 $1,648
$1,200 $1,407 $120

$1,105
$800 $80
$400 $491 $40

$39 $186 $1.6
$0 $12.9
$0
1990 1995 2000 2005 2007 2008 2009 June 30, Global Financial Aggregate AUM Hedge Fund
2010 Assets (1) of Top 10 Asset Industry (3)
(2)
Managers
________________________________________________
(1) Global financial assets include equity securities, private debt securities, government debt securities and bank deposits; McKinsey Global Institute,
September 2009.
(2) Firms include: Barclays Global, Allianz Group, State Street, Fidelity Investments, AXA Group, BlackRock, Deutsche Bank, Vanguard Group, J.P. Morgan Chase,
Capital Group. Assets are as of September 30, 2009.
(3) HFR. HFR Global Hedge Fund Industry Report. March 31, 2010. Assets are as of December 31, 2009.
1
BAAM AUM and Asset Flow Summary
BAAM: Solid Relative Performance, Strong Client Focus, Proper Fund Management
 Positive net inflows – Net inflows in 2008, 2009, 1H 2010 – a period of significant outflows for fund of hedge funds(1)
 Strong pipeline – Visibility into a diversified range of attractive prospect opportunities in 2011–2012
 Differentiated business model – Asset retention and growth through customization, innovation, advice
 Diverse product portfolio – Broad array of options for cross‐selling to existing investors and attracting new investors
AUM Net Asset Flow
($ in millions) ($ in millions)
$30,000 $10,000
Key Points:
$27,000 $9,000
 Strong track record of attractive risk‐adjusted
$24,000 returns(2) $8,000
$21,000  Balanced growth between existing investors and $7,000
new names
$18,000 $6,000
 Avoidance of significant fee compression due to
$15,000 scope of services and value‐add to LPs $5,000
$12,000 $4,000
$9,000 $3,000
$6,000 $2,000
$3,000 $1,000
$0 $0
(1)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
BAAM AUM BAAM Net Inflows
________________________________________________
(1) Data is estimated and unaudited. As of July 1, 2010. BAAM net inflows exclude internal (firm / employee) investments.
(2) Past performance is not indicative of future results and there is no assurance that any BAAM fund will achieve its objectives or avoid significant losses.
2
BAAM Performance Summary
BAAM’s Investment Process Has Produced Strong Risk‐Adjusted Returns(1)
 Portfolio construction – Historically has produced strong risk‐adjusted returns and capital preservation
 Differentiated exposure – Ability to “manufacture” tailored capacity and exploit market opportunities
 Manager partnerships – Ability to leverage scale and expertise to negotiate benefits for clients
 Expertise – Well‐resourced, experienced team sourcing new ideas and monitoring investments
January 2000 – July 2010
8% BAAM Composite MSCI Emerging
Annualized Net Return
Markets
6%
Barclays Agg Bond
GSCI Total Return
4% HFRI FOF Composite Index
2%
0% MSCI World
S&P 500 TR Index
‐2%
0% 4% 8% 12% 16% 20% 24% 28%
Annualized Standard Deviation
________________________________________________
(1) BAAM Composite covers the period from January 2000 to July 2010. BAAM’s inception date is September 1990 (further historical performance is available upon request). Past performance is not
indicative of future results and there is no assurance that any BAAM fund will achieve its objectives or avoid significant losses. The BAAM Composite is the asset‐weighted performance of BAAM’s
investments net of all fees (both BAAM and underlying manager). The Composite does not include BAAM's commodities platform, seed funds, and advisory relationships (details of the performance of
all BAAM funds are available upon request). The volatility of the indexes presented may be materially different from that of the performance of any particular BAAM fund included in the Composite. In
addition, these indexes employ different investment guidelines and criteria than the BAAM funds; as a result, the holdings in the BAAM funds may differ significantly from the securities that comprise
the indexes. The performance of these indexes has not been selected to represent an appropriate benchmark to compare to the performance of the BAAM Composite, but rather is disclosed to allow for
comparison of the Composite to that of well‐known and widely recognized indexes. A summary of the investment guidelines for these indexes is available upon request. In the case of equity indices,
performance of the indices reflects the reinvestment of dividends.
3
Investor Appetite for Hedge Fund Exposure: Demand Today vs. Demand in the Future
BAAM Has Multiple Opportunities to Increase Geographic Market Penetration
 Institutional focus – Industry growth driven by institutions seeking attractive risk‐adjusted returns and downside protection
 Growing demand in traditional markets – U.S. and European public and corporate pensions
 Significant potential in under‐penetrated markets – Middle East, Japan, Australia, and Canada
 Sizeable untapped opportunities – Latin America, China, and non‐Japan Asia
BAAM’s Investor Base Is Increasingly Global in Nature Opportunities Exist to Increase Market
Penetration and Enter New Geographies
100%
90%
80%
54.3% 50.6% 51.9%
70% 57.4%
63.0%
60%
50%
40%
25.0% 23.7%
30% 26.9%
30.4%
20% 35.2% 13.5%
14.7%
10.1%
10% 3.8% 5.4%
0.1% 3.7% 4.9% 4.2%
1.7% 4.6% 3.8% 5.5% 5.4%
0%
(1)
2006 2007 2008 2009 2010
All Others Japan Middle East Europe North America Traditional Focus Developing Market Opportunity
________________________________________________
(1) Data is estimated and unaudited and excludes internal capital. As of July 2010.
4
Product Innovation: Key Differentiator of the BAAM Model
BAAM “Reverse Engineers” New Solutions to Client Problems
 BAAM engages clients to identify key issues in institutional portfolio management
 BAAM has a track record of successfully addressing client concerns(1):
• Long‐biased commodities strategy – launched May 2007; over $1 billion in AUM(2)
• Hedge fund seeding platform – first fund launched in 2007; over $1 billion in AUM and commitments(2)
• Long‐only equity “replacement” strategies – increasing interest in hedged exposure, alpha generation
• Customized mandates – ability to accommodate specific risk and return targets
• Solutions research – ongoing across emerging markets and “long‐only” substitute product opportunities
 BAAM has developed an array of services for strategic partners, including:
• Advisory services
• Access to BAAM research and proprietary technology platform
• Proactive knowledge transfer and training
• Transitioning and rebuilding troubled client hedge fund portfolios
 BAAM is a thoughtful, value‐added partner
• Insight into key regulatory developments and industry responses
• Perspectives on approaches to top‐down asset allocation and other key client investment processes
• Thoughts regarding potential tactical allocations and market opportunities
________________________________________________
(1) Past performance is no guarantee of future results.
(2) AUM is estimated and unaudited. As of August 1, 2010.
5
Product Innovation: Implications for BAAM’s Business
Product Innovation: Key to Developing Strategic AUM Composition (August 2010)(1)
Relationships
 37 customized client vehicles – nearly 50% of BAAM
external AUM(1)
Customized
 Targeting specific client portfolio objectives 51% 49% Vehicles
Commingled
Assets
 Customized accounts have increased as a proportion
of BAAM AUM in recent years
Innovation Has Helped BAAM Avoid Fee Compression BAAM’s Fees(2)
(normalized to 2006 level)
 BAAM has avoided significant fee compression,
120%
despite reported trends among competitors
100%
 Management fees have largely held stable since 80%
Total Fee
2006(2) 60%
40%
 Incentive fees(2) – significant amount of assets 20%
already above or approaching their high water mark 0%
YE 2006 YE 2007 YE 2008 YE 2009 June 30, 2010
Management Fee Incentive Fee
________________________________________________
(1) AUM is estimated and unaudited. As of August 1, 2010.
(2) The fee analysis excludes internal assets and non‐core BAAM products (commodities platform, seed funds and advisory relationships).
6
Key Success Drivers of BAAM’s Business
BAAM has evolved beyond the traditional “Fund of Hedge Fund” model
Stable Management Team and Deep Bench of Talent
 Portfolio team members who have traded the asset classes and strategies in which BAAM invests
 140 team members, over half of whom are involved in the investment process(1)
Global Footprint
 BAAM offices in New York, London, and Hong Kong (investment professionals in each location)
 Increasingly global institutional investor base
Focus on Liquidity
 Proper asset / liability management across funds and strategies
 Provided liquidity to investors when needed
Leveraging the “Blackstone Library”(2)
 Access to Blackstone experts for industry and market insights
 Access to Blackstone’s extensive network of industry contacts
Alignment of Interest and a Culture of Risk Management and Compliance
 Significant firm and employee capital invested alongside clients
 Significant resources dedicated to reducing the risk of investing in funds that destroy client capital and / or generate negative
headlines
________________________________________________
(1) As of July 1, 2010. The Strategy‐Focused Research group includes BAAM’s Business Analyst / Technology Group which is comprised of 18 professionals who
support the investment team.
(2) Subject to information wall policies and procedures.
7
Key Success Drivers of BAAM’s Business (Cont’d)
BAAM has evolved beyond the traditional “Fund of Hedge Fund” model
Ability to Use Size and Scale Advantageously
 Use size to build strategic hedge fund manager relationships and negotiate beneficial terms / exposures for clients
 Leverage human capital, technology investments, and global footprint to further separate BAAM from competition
Product Offerings that Target Different Pools of Investor Capital
 Broad commingled product offerings and customized exposures based on client demand
 Specialized funds that attract a differentiated investor base
Product Innovation
 Ability to create tailored portfolios and fund structures to meet client needs or capitalize on market dislocations
 Partnerships with underlying managers where BAAM can access and structure customized exposure for clients
Emphasis on Technology and Transparency
 Significant investment in Portfolio Management, Risk Management, and Due Diligence technology tools
 Manager relationships and market reputation that facilitate transparency needs
Strategic Client Relationships
 BAAM is a trusted advisor to many of the world’s leading institutional investors
 A strategic relationship with BAAM can encompass a full scope of services beyond a portfolio mandate
8
A. Reconciliation of Non-GAAP Financial Measures
Reconciliation of GAAP Income (Loss) Before Taxes to ENI to NFRE to DE and NFRE to EBITDA‐NFRE
($ in thousands)
Three Months Ended LTM (1) Ended

Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 June 30, 2010 June 30, 2010
Revenues $597,023 $725,346 $701,239 $550,088 $2,573,696
Expenses 1,097,794 1,170,001 1,100,714 1,127,766 4,496,275
Other Income (Loss) 73,812 79,341 171,804 (59,250) 265,707
Income (Loss) Before Provision for Taxes ($426,959) ($365,314) ($227,671) ($636,928) ($1,656,872)
Economic Net Income Adjustments
IPO and Acquisition‐Related Charges 719,708 751,351 726,722 749,930 2,947,711
Amortization of Intangibles 39,513 39,511 39,512 40,822 159,358
Income (Loss) Associated with Non‐Controlling Interests in
Income (Loss) of Consolidated Entities (53,905) (59,703) (159,935) 58,294 (215,249)
Management Fee Revenues Associated with Consolidated CLO Entities ‐ ‐ 6,474 9,353 15,827
Economic Net Income, Before Taxes $278,357 $365,845 $385,102 $221,471 $1,250,775
NFRE Adjustments
Performance Fees and Allocations Adjustment (166,770) (214,960) (186,214) (25,636) (593,580)
Investment Income (Loss) Adjustment (58,003) (76,742) (156,828) (102,907) (394,480)
Investment Income (Loss) – Cash Management Strategies ‐ 12,368 3,665 5,062 21,095
Performance Fee Related Compensation and Benefits Adjustment 57,357 73,762 62,341 21,987 215,447
Taxes Payable (16,002) (21,110) (9,321) (12,062) (58,495)
Net Fee Related Earnings $94,939 $139,163 $98,745 $107,915 $440,762
Distributable Earnings Adjustments
Realized Performance Fees and Allocations (3,105) 48,172 46,140 23,495 114,702
Realized Investment Income (Loss) 7,669 35,641 5,307 15,721 64,338
Adjustment Related to Investment Income – Cash Management Strategies ‐ (10,142) (1,264) 512 (10,894)
Other Payables Including Payable under Tax Receivable Agreement ‐ ‐ (232) (68) (300)
Distributable Earnings $99,503 $212,834 $148,696 $147,575 $608,608
NFRE to EBITDA‐NFRE Reconciliation
Net Fee Related Earnings $94,939 $139,163 $98,745 $107,915 $440,762
Taxes Payable 16,002 21,110 9,321 12,062 58,495
Interest, Depreciation & Amortization 10,318 11,643 12,739 12,889 47,589
Earnings Before Interest, Taxes and Depreciation and Amortization from NFRE $121,259 $171,916 $120,805 $132,866 $546,846
________________________________________________
(1) Last Twelve Months.
1
Reconciliation of ENI Revenues to Fee Revenues and Transaction & Other Fees – Total Segments

($ in thousands)
ENI Revenues – Total Segments, As Reported
Twelve Months Ended Three Months Ended LTM Ended

Dec 31, 2007 Dec 31, 2008 Dec 31, 2009 Sep 30, 2009 Dec 31, 2009 Mar 31, 2010 June 30, 2010 June 30, 2010
Management and Advisory Fees
Base Management Fees $804,252 $1,041,718 $999,829 $255,848 $253,299 $251,971 $262,914 $1,024,032
Advisory Fees 360,284 397,519 390,718 94,566 122,709 76,568 134,099 427,942
Transaction and Other Fees, Net 478,810 96,358 115,040 22,493 59,925 35,260 20,617 138,295
Management Fee Offsets (22,484) (16,437) (17,161) (4,536) (2,368) (1,178) (179) (8,261)
Total Management & Advisory Fees $1,620,862 $1,519,158 $1,488,426 $368,371 $433,565 $362,621 $417,451 $1,582,008
Performance Fees & Allocations
Realized 1,054,816 39,013 74,264 (3,819) 72,260 53,881 46,374 168,696
Unrealized 106,032 (1,286,262) 165,867 170,589 142,700 132,333 (20,738) 424,884
Total Performance Fees & Allocations $1,160,848 ($1,247,249) $240,131 $166,770 $214,960 $186,214 $25,636 $593,580
Investment Income (Loss)
Realized 262,857 (64,677) 29,544 7,669 35,641 5,307 15,721 64,338
Unrealized 130,745 (691,934) 3,880 50,334 41,101 151,521 87,186 330,142
Total Investment Income (Loss) $393,602 ($756,611) $33,424 $58,003 $76,742 $156,828 $102,907 $394,480
Interest Income and Dividend Revenue 14,686 29,014 22,492 6,767 11,322 8,690 6,930 33,709
Other 528 13,595 7,096 3,893 1,818 (3,250) (644) 1,817
Total Revenues $3,190,526 ($442,093) $1,791,569 $603,804 $738,407 $711,103 $552,280 $2,605,594
Fee Revenues and Transaction & Other Fees, As Disclosed in Presentation
Fee Revenues
Base Management Fees $804,252 $1,041,718 $999,829 $255,848 $253,299 $251,971 $262,914 $1,024,032
Advisory Fees 360,284 397,519 390,718 94,566 122,709 76,568 134,099 427,942
Other 528 13,595 7,096 3,893 1,818 (3,250) (644) 1,817
Fee Revenues $1,636,076 $1,561,767 $1,518,014 $379,031 $446,705 $368,061 $423,737 $1,617,534
Transaction & Other Fees
Transaction and Other Fees, Net $478,810 $96,358 $115,040 $22,493 $59,925 $35,260 $20,617 $138,295
Other 528 13,595 7,096 3,893 1,818 (3,250) (644) 1,817
Transaction & Other Fees $471,540 $122,530 $127,467 $28,617 $70,697 $39,522 $26,724 $165,560
2
Reconciliation of ENI Revenues to Fee Revenues and Transaction & Other Fees – Private Equity

($ in thousands)
ENI Revenues ‐ Private Equity, As Reported

Base Management Fees $254,843 $268,961 $270,509 $67,009 $67,329 $65,432 $66,795 $266,565
Management Fee Offsets (10,734) (4,862) – – – – – –
Total Management & Advisory Fees $367,879 $315,895 $356,845 $85,377 $109,824 $97,404 $83,162 $375,767
Realized 574,274 (749) 34,021 – 34,021 46,175 1,106 81,302
Unrealized (194,357) (429,736) 303,491 110,867 90,621 45,549 (24,020) 223,017
Total Performance Fees & Allocations $379,917 ($430,485) $337,512 $110,867 $124,642 $91,724 ($22,914) $304,319
Realized 131,498 13,687 36,968 8,794 28,416 (495) 3,141 39,856
Unrealized (16,166) (196,200) 33,269 18,640 12,676 84,684 17,275 133,275
Total Investment Income (Loss) $115,332 ($182,513) $70,237 $27,434 $41,092 $84,189 $20,416 $173,131
Other 470 4,474 2,845 677 1,516 100 460 2,753
Total Revenues $865,329 ($286,170) $775,195 $226,908 $281,605 $276,845 $83,852 $869,210

Fee Revenues
Other 470 4,474 2,845 677 1,516 100 460 2,753
Fee Revenues $370,080 $326,828 $367,446 $88,607 $115,871 $100,932 $86,350 $391,760
Other 470 4,474 2,845 677 1,516 100 460 2,753
3
Reconciliation of ENI Revenues to Fee Revenues and Transaction & Other Fees – Real Estate

($ in thousands)
ENI Revenues ‐ Real Estate, As Reported

Management Fee Offsets (11,717) (4,969) (2,467) (415) (373) (489) (110) (1,387)
Realized 326,514 24,681 (3,039) (11,441) 3,166 5,948 16,319 13,992
Unrealized 297,437 (843,704) (252,180) 23,608 5,391 11,391 21,117 61,507
Total Performance Fees & Allocations $623,951 ($819,023) ($255,219) $12,167 $8,557 $17,339 $37,436 $75,499
Realized 68,996 3,778 6,164 (3,078) 6,500 2,632 3,900 9,954
Unrealized 65,472 (238,650) (125,624) 1,242 (219) 46,892 79,543 127,458
Total Investment Income (Loss) $134,468 ($234,872) ($119,460) ($1,836) $6,281 $49,524 $83,443 $137,412
Other 38 3,008 3,261 1,450 75 (1,876) (390) (741)
Total Revenues $1,329,543 ($718,009) ($13,570) $100,157 $117,749 $152,218 $208,452 $578,576

Fee Revenues
Other 38 3,008 3,261 1,450 75 (1,876) (390) (741)
Fee Revenues $571,124 $335,886 $361,109 $89,826 $102,911 $85,355 $87,573 $365,665
Other 38 3,008 3,261 1,450 75 (1,876) (390) (741)
4
Reconciliation of ENI Revenues to Fee Revenues and Transaction & Other Fees – CAMA

($ in thousands)
ENI Revenues – Credit and Marketable Alternatives, As Reported

Transaction and Other Fees, Net 6,630 8,516 2,866 778 958 1,345 1,169 4,250
Management Fee Offsets (33) (6,606) (14,694) (4,121) (1,995) (689) (69) (6,874)
Realized 154,028 15,081 43,282 7,622 35,073 1,758 28,949 73,402
Unrealized 2,952 (12,822) 114,556 36,114 46,688 75,393 (17,835) 140,360
Total Performance Fees & Allocations $156,980 $2,259 $157,838 $43,736 $81,761 $77,151 $11,114 $213,762
Realized 62,363 (82,142) (15,031) 1,953 (718) 2,983 8,729 12,947
Unrealized 81,439 (257,084) 96,016 29,976 28,901 19,715 (10,193) 68,399
Total Investment Income (Loss) $143,802 ($339,226) $80,985 $31,929 $28,183 $22,698 ($1,464) $81,346
Interest Income and Dividend Revenue 4,249 8,527 3,452 929 1,535 1,148 756 4,368
Other 31 1,214 1,025 715 248 (542) (372) 49
Total Revenues $627,996 $151,520 $632,345 $179,396 $213,337 $204,590 $124,337 $721,660
Fee Revenues, As Disclosed in Presentation

Fee Revenues
Transaction and Other Fees, Net 6,630 8,516 2,866 778 958 1,345 1,169 4,250
Management Fee Offsets (33) (6,606) (14,694) (4,121) (1,995) (689) (69) (6,874)
Interest Income and Dividend Revenue 4,249 8,527 3,452 929 1,535 1,148 756 4,368
Other 31 1,214 1,025 715 248 (542) (372) 49
Fee Revenues $327,214 $488,487 $393,522 $103,731 $103,393 $104,741 $114,687 $426,552
5
Reconciliation of ENI Revenues to Fee Revenues and Transaction & Other Fees and ENI to NFRE –
Financial Advisory
($ in thousands)
ENI Recap – Financial Advisory, As Reported

Advisory Fees $360,284 $397,519 $390,718 $94,566 $122,709 $76,568 $134,099 $427,942
Transaction and Other Fees, Net – – – – – 1 102 103
Total Management & Advisory Fees $360,284 $397,519 $390,718 94,566 122,709 76,569 134,201 $428,045
Realized – – 1,443 – 1,443 187 (49) 1,581
Unrealized – – 219 476 (257) 230 561 1,010
Total Investment Income (Loss) – – $1,662 $476 $1,186 $417 $512 $2,591
Other (11) 4,899 (35) 1,051 (21) (932) (342) (244)
Total Revenues $367,658 $410,566 $397,599 $97,343 $125,716 $77,450 $135,639 $436,148
Expenses
Compensation and Benefits ‐ Base Compensation $ 132,633 234,755 232,359 57,686 69,482 54,492 76,152 257,812
Other Operating Expenses 39,037 67,277 79,572 22,666 22,196 14,727 17,316 76,905
Total Expenses $171,670 $302,032 $311,931 $80,352 $91,678 $69,219 $93,468 $334,717
Economic Net Income $195,988 $108,534 $85,668 $16,991 $34,038 $8,231 $42,171 $101,431
Fee Revenues and Net Fee Related Earnings, As Disclosed in Presentation

Fee Revenues
Advisory Fees $360,284 $397,519 $390,718 $94,566 $122,709 $76,568 $134,099 $427,942
Transaction and Other Fees, Net – – – – – 1 102 103
Other (11) 4,899 (35) 1,051 (21) (932) (342) (244)
Fee Revenues $367,658 $410,566 $395,937 $96,867 $124,530 $77,033 $135,127 $433,557
ENI to NFRE Reconciliation
Economic Net Income $195,988 $108,534 $85,668 $16,991 $34,038 $8,231 $42,171 $101,431
Pro Forma Compensation Adjustment (1) (57,530) – – – – – – –
Pro Forma Interest Expense (2) 1,122
Investment Income (Loss) Adjustment – – (1,662) (476) (1,186) (417) (512) (2,591)
Investment Income (Loss) – Blackstone's
Treasury Cash Management Strategies – – 1,220 – 1,220 350 484 2,054
Taxes Payable (68,140) (13,356) (7,475) (110) (2,294) (2,092) (4,987) (9,483)
Net Fee Related Earnings (3) $71,440 $95,178 $77,751 $16,405 $31,778 $6,072 $37,156 $91,411
________________________________________________
(1) Represents adjustments for expenses related to employee compensation and profit sharing arrangements that were not effective prior to the reorganization.
(2) Represents adjustments to add back interest expense based on the assumption that the revolving credit facility was repaid in full from the proceeds of the offering as of January 1, 2007.
(3) Pro Forma for Twelve Months Ended December 31, 2007.
6
B. Speaker Biographies
Presenter Biographies
Stephen A. Schwarzman is Chairman, CEO and Co‐Founder of Blackstone and the Chairman of the board of directors of its general partner,
Blackstone Group Management L.L.C. He has been involved in all phases of the firm’s development since its founding in 1985.
Mr. Schwarzman began his career at Lehman Brothers, where he was elected Managing Director in 1978 at the age of 31. He was engaged
principally in the firm’s mergers and acquisitions business from 1977 to 1984, and served as Chairman of the firm’s Mergers & Acquisitions
Committee in 1983 and 1984.
Mr. Schwarzman is a member of The Council on Foreign Relations and The Business Council. He is on the board of The New York Public Library,
and The Asia Society. He serves on The JP Morgan Chase National Advisory Board, The New York City Partnership Board of Directors and The
Advisory Board of the School of Economics and Management, Tsinghua University, Beijing. Mr. Schwarzman is a Trustee of The Frick Collection
in New York City and Chairman Emeritus of the Board of The John F. Kennedy Center for the Performing Arts. He also was awarded the Légion
d’honneur by President Jacques Chirac.
Mr. Schwarzman holds a BA from Yale University and an MBA from Harvard Business School. He has served as an adjunct professor at the Yale
School of Management and on the Harvard Business School Board of Dean’s Advisors.
Hamilton (“Tony”) E. James is President, Chief Operating Officer of Blackstone, and a member of the board of directors of our general partner,
Blackstone Group Management L.L.C. He is also a member of Blackstone’s Management and Executive Committees and sits on each of the
firm’s investment committees.
Prior to joining Blackstone Mr. James was Chairman of Global Investment Banking and Private Equity at Credit Suisse First Boston and a
member of the Executive Board. Prior to the acquisition of Donaldson, Lufkin & Jenrette by Credit Suisse First Boston in 2000, Mr. James was
the Chairman of DLJ’s Banking Group, responsible for all the firm’s investment banking and merchant banking activities. Mr. James joined DLJ
in 1975 as an Investment Banking associate. He became head of DLJ’s global M&A group in 1982, founded DLJ Merchant Banking, Inc. in 1985,
and was named Chairman of the Banking Group in 1995. He is a Director of Costco Wholesale Corporation and Swift River Investments, Inc.,
and has served on a number of other corporate Boards.
Mr. James is Vice Chairman of The Kennedy Center Corporate Fund Board, Trustee and member of The Executive Committee of The Second
Stage Theatre, Trustee of The Metropolitan Museum of Art , Vice Chairman of Trout Unlimited’s Coldwater Conservation Fund, Trustee of
Woods Hole Oceanographic, Trustee of Wildlife Conservation Society, Advisory Board member of The Montana Land Reliance, and Chairman
Emeritus of the Board of Trustees of American Ballet Theatre. He is also a former member of the President’s Export Council – Subcommittee
on Technology & Competitiveness.
Mr. James graduated magna cum laude with a BA from Harvard College in 1973 and was a John Harvard Scholar. He earned an MBA with high
distinction from the Harvard Business School and graduated as a Baker Scholar in 1975.
Timothy Coleman is a Senior Managing Director and Head of the Restructuring & Reorganization Group. Mr. Coleman also serves as a member
of Blackstone’s Executive Committee.
Since joining Blackstone in 1992, Mr. Coleman has worked on a variety of restructuring and reorganization assignments for companies, creditor
groups, special committees of corporate boards, corporate parents of troubled companies and acquirers of distressed assets. Mr. Coleman’s
most notable assignments include Adelphia, AT&T (in the restructurings of AT&T Canada, Alestra, AT&T Broadband and Excite@Home), Bear
Stearns Asset Management, Bidermann Industries USA, Inc., Cable & Wireless Holdings, Camelot Music, Inc., CellNet Data Systems Inc., Credit‐
Based Asset Servicing and Securitization LLC (“C‐BASS”), Criimi Mae, Delta Air Lines, Edison Brothers Stores, Inc., Ermis Maritime Shipping,
Financial Guaranty Insurance Company (“FGIC”), FLAG Telecom, Geneva Steel Company, Guangdong Enterprises, Harnischfeger Industries,
Harrah’s Jazz Company, JPS Textile Group, Inc., Koll Real Estate, Mirant Corp., Molten Metal Technology, Inc., RCN, R.H. Macy & Co.,
Stratosphere Corporation, Supercanal Holding, S.A., Vencor, Inc., Williams Communications, Xerox Corporation and XL Capital.
The International Financing Review recognized Mr. Coleman’s efforts in the restructuring of C‐BASS by naming the transaction the
Restructuring of the Year in 2008.
Before joining Blackstone, Mr. Coleman was a Vice President at Citibank N.A. for twelve years, where he divided his time between corporate
restructuring, real estate restructuring, and loan syndications.
Mr. Coleman is a frequent guest lecturer at Columbia University and New York University. He is a member of the inMotion Board of Directors
and the Board of Leaders of the Marshall School of Business at the University of Southern California.
Mr. Coleman received a BA from the University of California at Santa Barbara and an MBA from the University of Southern California.
Bennett J. Goodman, Senior Managing Director of The Blackstone Group and a Member of the Blackstone Group Executive Committee, is a
Founder of GSO Capital Partners.
Before co‐founding GSO Capital Partners in 2005, Mr. Goodman was Chairman, Founder and Managing Partner of the Alternative Capital
Division of Credit Suisse First Boston. He was responsible for overseeing $33 billion of assets under management, including investment
partnerships for private equity investments, mezzanine securities, real estate investments and several credit oriented investment strategies.
Mr. Goodman was a member of the Executive Board and the Management Council of CSFB. Additionally, Mr. Goodman served as the Chairman
of the Corporate Bank, overseeing CSFB’s $35 billion of global corporate lending activities.
Mr. Goodman joined CSFB in 2000 when it acquired Donaldson, Lufkin & Jenrette (“DLJ”) where he was Global Head of Leveraged Finance. Mr.
Goodman joined DLJ in 1988 as the founder of the High Yield Capital Markets Group. In 1993, DLJ became the #1 global issuer of high yield
bonds and Mr. Goodman’s team retained that coveted market position for the next 11 consecutive years. Prior to joining DLJ, Mr. Goodman
worked in the high yield business at Drexel Burnham Lambert from 1984 to 1988.
Mr. Goodman graduated from Lafayette College and the Harvard Business School. He is on the Board of Directors of the Film Society of Lincoln
Center, the Cancer Research Institute and the American Jewish Committee (Westchester Chapter). He also serves on the Dean’s Council of Mt.
Sinai School of Medicine and the investment committee of the Lafayette College endowment. Mr. Goodman received the 2004 Lifetime
Achievement Award from Euromoney Magazine for his career achievements in the global capital markets.
Jonathan D. Gray is Senior Managing Director and Co‐Head of Real Estate. He is also a member of Blackstone’s Management and Executive
Committees.
Since joining Blackstone in 1992, Mr. Gray has led the privatization of eleven public real estate companies valued at more than $100 billion
including Extended Stay America, Carr America, Equity Office Properties and Hilton Hotels. Mr. Gray previously worked in the Advisory Group
and the Private Equity Group at Blackstone.
Mr. Gray received a BS in Economics from the Wharton School, as well as a BA in English from the College of Arts and Sciences of the University
of Pennsylvania, where he graduated magna cum laude and was elected to Phi Beta Kappa. He currently serves as a board member of the
Pension Real Estate Association, NAREIT, Harlem Village Academies and Trinity School.
J. Tomilson Hill is President and Chief Executive Officer of the Funds of Hedge Funds group, a Vice Chairman of Blackstone and a member of the

board of directors of our general partner, Blackstone Group Management L.L.C.
Mr. Hill previously served as Co‐Head of the Corporate and Mergers and Acquisitions Advisory group before assuming his role in the Funds of
Hedge Funds group. In his current capacity, Mr. Hill is responsible for overseeing the day‐to‐day activities of the group, including investment
management, client relationships, marketing, operations and administration. He also serves as a member of Blackstone’s Management and
Executive Committees.
Before joining Blackstone in 1993, Mr. Hill began his career at First Boston, later becoming one of the Co‐Founders of its Mergers & Acquisitions
Department. After running the Mergers & Acquisitions Department at Smith Barney, he joined Lehman Brothers as a partner in 1982, serving as
Co‐Head and subsequently Head of Investment Banking. Later, he served as Co‐Chief Executive Officer of Lehman Brothers and Co‐President
and Co‐COO of Shearson Lehman Brothers Holding Inc.
Mr. Hill is a graduate of Harvard College and the Harvard Business School. He is a member of the Council on Foreign Relations where he chairs
the Investment Committee and serves on the Council’s Board of Directors, and is a member of the Board of Directors of Lincoln Center Theater,
where he serves as President. Mr. Hill serves as Chairman of the Board of Trustees of the Smithsonian’s Hirshhorn Museum and Sculpture
Garden. He is a member of the Advisory Board of Christie’s and a member of the Board of Directors of OpenPeak Inc.
Garrett M. Moran is a Senior Managing Director and Chief Operating Officer of the Private Equity Group. He is a member of Blackstone’s
Executive Committee, as well as all investment committees for the Private Equity Group.
Prior to joining Blackstone in 2005, Mr. Moran was a Senior Principal and the President of MMC Capital. Before joining MMC Capital in 2002,
Mr. Moran had a long career at Donaldson, Lufkin & Jenrette. His last position there was Vice Chairman and co‐head of the Banking Group. He
joined DLJ in 1982 as an investment banking associate and subsequently headed the firm’s High Yield Bond Department and served as Chief
Operating Officer of DLJ’S Taxable Fixed Income Division. He was Vice Chairman and co‐head of the Banking Group of DLJ at the time of the
firm’s acquisition by Credit Suisse First Boston Corporation. Following that acquisition, Mr. Moran served CSFB as co‐head of the investment
banking integration effort and subsequently was the head of CSFB’s Private Equity Division.
Mr. Moran is a board member of the Posse Foundation, former Chairman of the Board of Trustees of the Brunswick School and former Vice
Chairman of the board of Middlebury College. He received a BA from Middlebury College and an MBA from the Wharton School of the
University of Pennsylvania.
James A. Quella is a Senior Managing Director and Senior Operating Partner in the Private Equity Group.
Mr. Quella is responsible for monitoring the strategy and operational performance of Blackstone portfolio companies and providing direct
assistance in the oversight of large investments. He is also a member of the firm’s Private Equity Investment Committee.
Prior to joining Blackstone in 2004, Mr. Quella was a Managing Director and Senior Operating Partner with DLJ Merchant Banking Partners‐
CSFB Private Equity. Prior to that, Mr. Quella worked at Mercer Management Consulting and Strategic Planning Associates, its predecessor firm,
where he served as a senior consultant to CEOs and senior management teams, and was Co‐Vice Chairman with shared responsibility for
overall management of the firm.
Mr. Quella received a BA in International Studies from the University of Chicago/University of Wisconsin‐Madison and an MBA with dean’s
honors from the University of Chicago. He is also the co‐author of Profit Patterns: 30 Ways to Anticipate and Profit from the Strategic Forces
Reshaping Your Business. Mr. Quella has been a member of various Private Equity company boards and currently serves as a Director of
Catalent, Freescale Semiconductor, Graham Packaging, Michaels Stores, Inc., and Vanguard Health Systems.
Vikrant Sawhney is a Senior Managing Director in the Private Equity Group and is based in New York. Mr. Sawhney leads the Private Equity

Group’s capital markets activities and also works closely with GSO, Advisory & Restructuring Group and various other parts of the firm on
credit‐related matters.
Before joining Blackstone in 2007, Mr. Sawhney worked as a Managing Director in the Financial Sponsors Group at Deutsche Bank, where he
was responsible for managing the firm’s relationships with Blackstone and several other large private equity firms. Prior to joining Deutsche
Bank, Mr. Sawhney was an Associate at the law firm of Simpson Thacher & Bartlett.
Mr. Sawhney received a BA, magna cum laude, from Dartmouth College, where he was elected to Phi Beta Kappa. He also received a J.D., cum
laude, from Harvard Law School.
John Studzinski CBE is a Senior Managing Director and global head of Blackstone Advisory Partners LP. Mr. Studzinski is based in both New
York and London.
Mr. Studzinski’s primary role is to oversee Blackstone’s global advisory business. He is a member of the firm’s Executive Committee.
Before joining Blackstone in 2006, Mr. Studzinski was a member of the Group Management Board and co‐head of investment banking at HSBC
based in London from 2003 to 2006. Prior to that he was at Morgan Stanley from 1980 to 2003, where he served as head of the European
Investment Banking Division and Deputy Chairman of Morgan Stanley International.
His recent transaction experience includes advising the Board of AIG on its global restructuring, the Ministers of the Government of the
Ukraine, the Board of Reuters on the merger with Thomson, China Development Bank on its investment in Barclays PLC, the Board of Northern
Rock on its restructuring, the Board of Suez on the proposed merger with Gaz de France, the Board of Unilever on the Dual Head Structure, the
BAT senior management on certain material strategic options and the Board of Petrochina on a possible acquisition of Unocal.
Mr. Studzinski graduated from Bowdoin College in 1978 with a double BA Degree magna cum laude in Biology & Sociology. He received an
MBA from the University of Chicago in 1980 in Finance and Marketing. He is Vice‐Chair and Director of Human Rights Watch where he serves
on the Executive Committee as well as Chairman of the Investment Committee. He also serves as a Trustee of Bowdoin College, the Tate
Foundation, The Passage Day Centre for the Homeless and The Royal Parks Foundation. He is a member of the Council of The Royal College of
Art and is Chair of the Emmaus Revives Lives campaign. In mid 2007, Mr. Studzinski stepped down as a trustee of the Tate and became
Chairman of Benjamin Franklin House. In 2001, he established the Genesis Foundation which supports and nurtures emerging composers,
directors, writers and actors into sustained careers in the arts.
Mr. Studzinski was made a Knight of the Order of St. Gregory for his humanitarian work for the homeless. He was also made a Knight
Commander of Saint Sylvester. He received the Prince of Wales Ambassador’s Award in recognition of his contribution to the homeless. He
received the Beacon Prize in 2004 for services to philanthropy and in October 2007 was voted Banker of the Year by the Variety Club UK. In
2008, he was named in the Queen’s New Year Honours List as a Commander of the British Empire (“CBE”) for his services to the Arts and to
Charity.
Laurence Tosi, a Senior Managing Director, is the firm’s Chief Financial Officer. He also serves on the firm’s Executive Committee.
Before joining Blackstone in 2008, Laurence Tosi was the Chief Operating Officer for the Global Markets and Investment Banking Group of
Merrill Lynch & Co. Prior to that, he was Senior Vice President and Finance Director responsible for Merrill Lynch’s global finance organization,
including worldwide accounting, regulatory reporting, budgeting and corporate development.
Laurence Tosi received a BA, a JD and an MBA from Georgetown University.
Joan Solotar is a Senior Managing Director in the External Relations and Strategy Group of The Blackstone Group and a member of the firm’s
Executive Committee. Ms. Solotar has management responsibility for shareholder relations and public affairs and also guides the firm on
analyzing strategic development opportunities.
Before joining Blackstone in 2007, Ms. Solotar was with Banc of America Securities where she was a Managing Director and Head of Equity
Research. She started her career in equity research at The First Boston Corporation and prior to joining Bank of America was part of the
financial services team at Donaldson, Lufkin & Jenrette and later with CSFB as a Managing Director. Ms. Solotar was ranked each year from
1995 to 2002 in the Brokers and Asset Management category on the Institutional Investor All‐America Research Team, and consistently ranked
highly in the Greenwich Survey of portfolio managers. She also served as Chairperson of the Research Committee for the Securities Industry
Association.
Ms. Solotar received a BS in Management Information Systems at the State University of New York at Albany and an MBA in Finance at NYU.
She is currently on the Board of Directors of the East Harlem Tutorial Program.
Weston Tucker is a Vice President in the External Relations and Strategy Group.
Since joining Blackstone, Mr. Tucker has been involved in Blackstone’s dealings with the investment community.
Before joining Blackstone in 2007, Mr. Tucker worked as an associate in JPMorgan’s equity research department, covering telecom and cable.
He began his career at AT&T, where he worked in a variety of finance roles including investor relations and communications, as well as
corporate development.
Mr. Tucker graduated summa cum laude with a BS in Business Administration (Finance) from Ohio State University.
Notes
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Offices
New York Chicago Los Angeles London Tokyo
345 Park Avenue 200 West Madison Street 1299 Ocean Avenue 40 Berkeley Square 11F AIG Building
New York, NY 10154 Suite 3800 Suite 320 London, W1J 5AL 1-1-3 Marunouchi, Chiyoda-ku
Phone: +1 212 583 5000 (TBG) Chicago, IL 60606 Santa Monica, CA 90401 United Kingdom Tokyo, 100-0005
Fax: +1 212 583 5749 (TBG) Phone: +1 312 705 3070 Phone: +1 310 310 6949 Phone: +44 (0) 20 7451 4000 Japan
Phone: +1 212 583 5799 (Park Hill) Fax: +1 312 705 3079 Fax: +1 310 310 6998 Fax: +44 (0) 20 7451 4001 Phone: +81 (03) 4577 8400
Fax: +1 212 583 5639 (Park Hill) Fax: +44 (0) 20 7451 4091 Fax: +81 (03) 4577 8401
Dallas Menlo Park (Park Hill)
New York – GSO 3949 Maple Avenue 2494 Sand Hill Road Beijing
280 Park Avenue Suite 400 Suite 200 London – GSO Winland International Finance Center
11th Floor Dallas, TX 75219 Menlo Park, CA 94025 13 Hanover Square Unit F817-18
New York, NY 10017 Phone: +1 214 661 8390 Phone: +1 650 798 3800 5th Floor No. 7, Finance Street
Phone: +1 212 503 2100 Fax: +1 214 661 8395 Fax: +1 650 798 3801 London W1S 1HN Xicheng District, Beijing
Fax: +1 212 503 6930 United Kingdom China 100140
Houston – GSO San Francisco Phone: +44 (0) 20 7758 9000 Phone: +86 10 6649 7300
Atlanta 11 Greenway Plaza 101 California Street Fax: +44 (0) 20 7758 9098 / 9099 Fax: +86 10 6649 7301 (Pvt Equity)
4401 Northside Parkway 30th Floor, Suite 3050 Suite 2880 Fax: +86 10 6649 7310 (Corp. Advisory)
3rd Floor, Suite 375 Houston, TX 77046 San Francisco, CA 94111 Paris
Atlanta, GA 30327 Phone: +1 713 358 1400 Phone: +1 415 276 5900 3 Rue Paul Cezanne Sydney
Phone: +1 404 460 2321 Fax: +1 713 358 1401 Fax: +1 415 276 5919 4th Floor Angel Place
Fax: +1 404 460 2337 75008 Paris Suite 2802
France 123 Pitt Street
Boston Phone: +33 (0) 1 56 69 16 30 Sydney, NSW 2000
Exchange Place Fax: +33 (0) 1 56 69 16 31 Australia
53 State Street Phone: +61 2 8016 7200
Boston, MA 02109 Mumbai Fax: +61 2 8016 7201
Phone: +1 617 646 2900 (BAP) Express Towers, 5th Floor
Fax: +1 617 646 2905 (BAP) Nariman Point Shanghai
Phone: +1 866 800 8933 (Asia Adv.) Mumbai – 400 021 Unit 1101, DBS Bank Tower
Phone: +1 617 598 2000 (Asia Adv.) India No. 1318 Lujjazui Ring Road, Pudong
(outside North America) Phone: +91 (0) 22 6752 8520 (BFSIP) Shanghai 200120, PRC
Fax: +91 (0) 22 6752 8530 (BFSIP) Phone: +86 21 6169 8188
Phone: +91 (0) 22 6752 8500 (BAIP) Fax: +86 21 6169 8189
Fax: +91 (0) 22 6752 8531 (BAIP)
Hong Kong
Two International Finance Centre
9th Floor, Suite 901
8 Finance Street
Central, Hong Kong
Phone: +852 3656 8600
Fax: +852 3656 8601

2010 Blackstone Investor Day

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2010 Blackstone Investor Day

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2010 Blackstone Investor Day

September 23, 2010

Hilton New York

Transaction & Advisory Fees Activity‐based Activity‐based

Principal Gains on BX BX Returns on its BX Returns on its

$1,800 $1,636 $1,562 $1,618 $180

$1,200 $398 $391 $428 $120

Management Fees Advisory Fees Transaction & Other Fees Fee‐Earning AUM

GAAP Income (Loss) Before Provision for Taxes $(1,657)

$100 $67 $10

5%3% $80 $73

 $3.45 billion in Investments Cash and Cash Equivalents $ 507

Total Partners’ Capital $ 5,813

Geographies Industries Size(1)

Business  Strategy & Performance Enhancement  CoreTrust Purchasing Group™

Portfolio‐Wide Initiatives Transformational Initiatives Functional Initiatives

 Working Capital optimization • Plant consolidation and • Co‐sourcing

 Intelenet – business process outsourcing  Allcargo – logistics

 Orbitz , Hilton Hotels, La Quinta – travel  T‐Mobile Wireless – telecom

Expertise and deal sourcing beyond the reach of any stand‐alone private equity firm

Restructuring Advisory Corporate Advisory Real Estate Credit / GSO Fund of Hedge Funds

Deal Sourcing / Bankruptcy Deal Sourcing / Corporate Real Estate Asset Joint Investing / Market Global Macro /

Strategy Sessions / First Investment Final Investment

 Top down  Gates deals and  Detailed drill‐  Price range,  Settles on final  Reviews results,

BCP V 1,504 1.5x 23% 15% 17,428 1.0x 0% ‐2% ‐7% 5%

2000 2001 2003 2005 2006 2008 2010 2011

25% 23% should be 3%

Top of Cycle Bottom of Cycle U.S. GDP Growth

Diverse Industry  Financial Institutions, Energy and Natural Resources, Chemicals, Technology & Communications,

Unique Perspectives on Value Creation – “Hired Principal” Mentality

$17 Billion £6.6 Billion(1) $8.3 Billion $8.0 Billion $7.6 Billion $3.7 Billion $3.3 Billion

Advisor to Sole advisor to Advisor to Advisor on the sale Advisor to Advisor to Advisor to

Coverage Universe 2005 2010

 Consumer & Retail  Consumer & Retail  Chemicals

Stefan Feuerabendt 16  Lehman Brothers 1998

Michael Genereux 9  Credit Suisse First Boston 2003

Flip Huffard 18  Hellmold Associates 1995

Nick Leone 20  Salomon Brothers 1995

Steve Zelin 22  Ernst & Young 1998

Out‐of‐Court Assignments Chapter 11 Assignments Creditor Assignments

70% 72.2% 71.7% 72.0%

30% 32.9% 33.9% 33.8%

$100 153 156 138

$2.8 billion $3.3 billion $3.1 billion(1) $19.4 billion

Capital Deployed: $589.6 million  Prospective investments are in a variety of

68% 69.55% 1.31%

$15 $13.7 $16.6

2005 2006 2007 2008 2009 2Q'10

Products offered Hedge Funds, CLOs, SMAs Hedge Funds, CLOs,

(3) Credit Composite Index reflects the average portfolio construction since inception which consists of the following mix of indices: 60% CS Leveraged Loan Index, 25% CS High Yield Index and 15% CS

BREP V 2006 – 2007 $5.2 1.5x– 1.6x

BREP Europe III 2008 – Present $4.1 2.0x– 2.5x

BREDS(2) 2008 – Present $2.0 1.5x– 1.7x

BREP Intl II 2006 – 2007 $1.7 1.2x– 1.4x

Co‐Investment 2007 – Present $1.1 2.0x– 2.5x

BREP BREDS Bank of America (Merrill Lynch ‐ Asia) ‐ Pending

Leveraged Public  Busch Entertainment Corporation – Sea World / Busch Gardens theme parks

 General Growth Properties – Leading regional mall owner / operator – Pending

Bankruptcy  Sunwest – Large portfolio of assisted and independent living facilities

BREP VI BREP Europe III Reserves BREDS

$ 3,920 $ 1,135 $ 435

Occupancy ADR RevPAR

$1,200 $1,407 $120