2014 Blackstone Investor Day

June 12, 2014 The Waldorf Astoria New York, NY

Table of Contents Important Disclosures Agenda Introduction Welcome Remarks GSO Real Estate Private Equity Portfolio Operations Tactical Opportunities Strategic Partners Private Wealth BAAM Blackstone Financials Update & Conclusion Appendix Blackstone

Important Disclosures Not an offer. These materials are provided as an overview of The Blackstone Group L.P. and are for informational purposes only, and do not constitute an offer to sell, or a solicitation of an offer to buy, any security or instrument, or a solicitation of interest in any particular Blackstone fund, account or strategy. If such an offer is made, it will only be made by means of an offering document, which would contain material information (including certain risks of investing in such security, fund or strategy) not contained in these materials and which would supersede and qualify in its entirety the information set forth in these materials. Any decision to invest in a fund should only be made after reviewing the offering document, conducting such investigations as an investor deems necessary and consulting the investor s own legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment. Performance Information. Past performance is not necessarily indicative of future results and there can be no assurance that any Blackstone fund or strategy will achieve comparable results, or that any investments made by Blackstone in the future will be profitable. Actual realized value of currently unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the current unrealized valuations are based. Accordingly, the actual realized values of unrealized investments may differ materially from the values indicated herein. General. Data in the materials is as of March 31, 2014 unless otherwise noted. Unless otherwise indicated, assets under management ( AUM ) in this presentation refers to total assets under management, which differs from fee-earning assets under management. Neither Blackstone, any Blackstone fund nor any of Blackstone s affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein. Unless otherwise specified, the source for all graphs, charts and information in these materials is Blackstone. Certain information contained in these materials has been obtained from sources outside Blackstone. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and Blackstone does not take any responsibility for such information. Certain information contained in the presentation discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. Index Comparisons. The volatility and risk profile of the indices presented may be materially different from that of the Blackstone funds. In addition, the indices employ different investment guidelines and criteria than the funds and do not employ leverage; as a result, the holdings in the funds and the liquidity of such holdings may differ significantly from the securities that comprise the indices. The indices are not subject to fees or expenses and it may not be possible to invest in the indices. The performance of the indices has not been selected to represent an appropriate benchmark to compare to the performance of the Blackstone funds, but rather is disclosed to allow for comparison of the funds performance to that of well-known and widely recognized indices. A summary of the investment guidelines for the indices presented are available upon request. In the case of equity indices, performance of the indices reflects the reinvestment of dividends. Non-GAAP Financial Measures. The materials contain information regarding Blackstone s financial results prepared on a basis of accounting generally accepted in the United States of America ( GAAP ) as well as certain financial measures calculated and presented on the basis of methodologies other than in accordance with GAAP ( non-gaap ). Definitions and calculations for each of these non-gaap measures can be found in the Appendix to the materials. Blackstone 1

Important Disclosures, continued Forward-Looking Statements. These materials 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, 2013, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission, which are accessible on the SEC s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in the 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. GSO Section, page 3. Certain GSO entities act as sub adviser to the business development companies ( BDCs ). The applicable non GSO entities that act as advisers to the BDCs (the BDC Advisers ) retain investment discretion over the BDCs investment programs. Thus, while GSO proposes investment opportunities to the BDC Advisers for investment by the BDCs, the BDC Advisers have investment discretion to approve or reject such proposed investment opportunities. GSO does not have investment discretion with respect to the BDCs. Strategic Partners Section, page 1. Net returns for Strategic Partners flagship funds, SP I SP V, are from inception in December 2000 to December 31, 2013. The valuation policy of each of the Funds is to mark its holdings to amounts that reflect the fair value of the underlying portfolio investments as reported by the general partners or managers of the underlying funds, rather than the cost of the secondary investments paid by the respective Fund. The purchase discounts (or premiums) paid at the closing of a transaction initially impact the internal rate of return, which over time reflects subsequent changes in the valuations of the underlying funds. The performance of SP I, SP II, SP III and SP V as applicable is presented together with such Funds parallel funds on a combined basis. Gross internal rate of return ( IRR ) is annualized and calculated based on the limited partners daily inflows and outflows, before fund expenses and the general partner s carried interest of the Fund, but after the fund expenses and carried interest of the underlying funds. Net IRR is calculated after management fees and fund expenses and the general partner s carried interest of the Fund. Each of SP I, SP II, SP III and SP 2007 has a lower carried interest than that of SP IV and SP V. In addition, SP I has a different fee structure compared to the other Funds. SP V has experienced limited investment dispositions and the relevant measurement / holdings periods over which the IRRs have been calculated are significantly shorter than the anticipated average holding period of the Fund s investments. Accordingly, such IRRs are not meaningful at this time. BAAM Section, page 2. BAAM Principal Solutions Composite covers the period from January 2000 to present, although BAAM s inception date is September 1990. BAAM s Principal Solutions Composite does not include BAAM s long-only equity, long-biased commodities, seed, strategic opportunities (external investments) or advisory platforms. BAAM s external AUM in specialized or customized solutions includes BAAM s customized, strategic opportunity, strategic capital, seed, long-only equity, long-biased commodity, and individual investor solutions platforms. Blackstone 2

Agenda Thursday, June 12, 2014 Time Function Location 7:00 am 2:00 pm Conference Registration Distribution of Conference Materials Starlight Roof Foyer (Park Avenue entrance elevators) 7:00 am 8:00 am Welcome Buffet Breakfast Starlight Roof North 8:00 am 8:05 am 5 mins Introduction Joan Solotar, Head of External Relations and Strategy Starlight Roof Center 8:05 am 8:15 am 10 mins 8:15 am 8:40 am 25 mins 8:40 am 9:10 am 30 mins Welcome Remarks Tony James, President & COO GSO Bennett Goodman, Co-Founder, GSO Capital Partners, Senior Managing Director, Blackstone Real Estate Jon Gray, Global Head of Real Estate Starlight Roof Center Starlight Roof Center Starlight Roof Center 9:10 am 9:35 am 25 mins 9:35 am 9:50 am 15 mins Private Equity Joe Baratta, Global Head of Private Equity Portfolio Operations Dave Calhoun, Global Head of Portfolio Operations Starlight Roof Center Starlight Roof Center 9:50 am 10:00 am 10 mins Break Starlight Roof Blackstone

Agenda Thursday, June 12, 2014 Time Function Location 10:00 am 10:25 am 25 mins 10:25 am 10:40 am 15 mins The Buy-Side View Moderator: Steve Schwarzman, Chairman, CEO and Co-Founder Mario Giannini, CEO, Hamilton Lane Tactical Opportunities David Blitzer, Head of Tactical Opportunities Starlight Roof Center Starlight Roof Center 10:40 am 10:55 am 15 mins Strategic Partners Verdun Perry, Co-Head of Strategic Partners Starlight Roof Center 10:55 am 11:10 am 15 mins Private Wealth Brendan Boyle, Head of Private Wealth Distribution Starlight Roof Center 11:10 am 11:35 am 25 mins BAAM Tom Hill, President and CEO, BAAM, Vice Chairman, Blackstone Starlight Roof Center 11:35 am 11:55 am 20 mins Blackstone Financials Update & Conclusion Laurence Tosi, Chief Financial Officer Starlight Roof Center 11:55 am 12:20 pm 25 mins Wrap-Up and Q&A Steve Schwarzman, Chairman, CEO and Co-Founder Tony James, President & COO Starlight Roof Center 12:30 pm 1:45 pm Seated Lunch Starlight Roof North Blackstone

Introduction

Blackstone: Leaving the pack behind FAST LANE Blackstone 1

What you may not know about Blackstone Our funds created $33 billion of value in the past year In the past year investors entrusted us with $52 billion in additional funds We invest for over half of all U.S. pensioners Innovation has driven $122 billion in AUM from new products since our IPO We are the most profitable asset manager in the world We have a greater presence on social media than any of our peers Blackstone 2

The Alternatives have evolved # of Public Companies 8 # of Institutions with >1mm Shares of BX 65 3 14 2007 Today IPO Today Average Daily Trading Volume ($ in millions) $357 Market Cap and Free Float ($ in billions) $100 $84 $165 $40 $41 $6 $38 $19 2007 Today Mkt Cap Float Mkt Cap Float 2007 Today BX Alternatives Note: As of June 10, 2014. Alternatives include: APO, ARES, BX, CG, FIG, KKR, OAK and OZM. BX Alternatives Blackstone 3

Where would Blackstone rank today in the S&P 500? ($ in millions) Market Market Cap / LTM Avg. Daily Trading Dividend Yield Cap Employees Employee Earnings Volume 13A 14E Blackstone $38,014 2,016 $18.9 $3,700 $165 4.3% 5.4% Median for Asset Managers in S&P 500 22,149 7,523 3.3 1,255 97 2.0% 2.0% S&P 500 Financials Median 19,498 10,991 1.1 1,004 108 2.0% 2.1% S&P 500 Median 17,983 17,800 1.0 796 124 1.6% 1.7% In which quartile would Blackstone rank? 1 4 1 1 2 1 1 Note: As of June 10, 2014. Blackstone 4

BX ENI 2014 Blackstone Investor Day Blackstone s earnings are not closely linked to the stock market Blackstone Earnings vs. S&P 500 300% 200% R² = 0.22 100% 0% -20% -15% -10% -5% 0% 5% 10% 15% 20% -100% -200% -300% S&P 500 Blackstone 5

The market values growth BX Asset Managers Advisory Firms Biotech Software Earnings Growth (1) 31% 10% 15% 11% 9% Stock Volatility (2) 26% 24% 26% 39% 30% 14E P/E (3) 10x 16x 23x 19x 23x $6.9bn $0.4bn 98 00 02 04 06 08 10 12 1Q 14 LTM Note: Asset managers include: AB, AMG, BEN, BLK, EV, FII, IVZ, JNS, LM, TROW and WDR. Advisory firms include: LAZ, GHL, EVR, and MC. Biotech and Software based on the Global Industry Classification Standard. (1) As of December, 31, 2013. Trailing 3-year CAGR. (2) Based on the average of the implied volatility (6M, 100 strike) for the companies within the industries. (3) Based on 2014 consensus estimates. Blackstone 6

What s it all worth? 60% below our historic rate Hypothetical Fee-Earning AUM ($ in billions) $610 If: 12% AUM growth 2x multiple on invested capital 7% 10% liquid fund returns $204 Average Cash Earnings: $2.70 Current 1 2 3 4 5 6 7 8 9 10 Years Hypothetical Distributable Earnings ($ per diluted unit) Implied Stock Price $4.15 LTM 1 2 3 4 5 6 7 8 9 10 Years Yield in Year 10 Year 10 excluding Distributions Cumulative Distributions Paid Note: Presentation of hypothetical growth in Fee-Earning AUM and Distributable Earnings not intended to project future performance. Calculation of hypothetical Distributable Earnings per unit is intended to be illustrative and for that purpose contains a number of assumptions including, among others, constant management and performance fee rates and margins over the ten-year period, a 2x realized multiple of invested capital over an average hold period of 4.5 years for our draw-down funds and an effective tax rate of 15% 20% on taxable income for the ten-year period. Cumulative distributions paid assumes 100% payout of Distributable Earnings. Analysis assumes no reinvestment of distributions paid. + + + = = = Total 6% $69 $27 $96 5% $83 $27 $110 4% $104 $27 $131 Blackstone 7

Welcome Remarks

Welcome to Blackstone s fourth Investor Day Private Equity Real Estate Jon Gray Joe Baratta Dave Calhoun Credit Bennett Goodman Hedge Fund Solutions Tactical Opportunities Tom Hill David Blitzer Private Wealth Brendan Boyle Finance & Technology Laurence Tosi Secondaries Verdun Perry Blackstone 1

Leading market positions across all our businesses People have been trying to imitate Blackstone for years Blackstone 2

Not easy to replicate One of the best brands in all financial services Most extensive network of institutional LP relationships Deepest and broadest management team Scale to handle large, complex transactions that others can t Better information; seamless sharing of knowledge and ideas Unique culture Tradition of winning The only firm with leadership positions across multiple businesses Blackstone 3

What makes Blackstone different? Small Firm Feel each person makes a difference Engaged Leaders shaping and guiding people daily Camaraderie cohesive teams; common mission An enduring culture that is unique and compelling Flat Organization no bureaucracy; move quickly Passion drive to win Talent deep; broad; driven Innovation entrepreneurial spirit Blackstone 4

How is the market valuing leadership? For companies in the S&P 500 with The median P/E multiple is Earnings growth >30% 20x EBITDA margin >50% 24x Return on equity >40% 19x Dividend yield >5% 16x Blackstone surpasses all of these metrics but BX multiple is 10x Note: Earnings growth reflects 3-year CAGR from 2010 through 2013. EBITDA margin and return on equity reflect 2013 full-year results. Dividend yield is based on 2014 consensus estimates. S&P 500 P/E multiple reflects the median multiple, based on 2014 consensus earnings, of S&P 500 companies that meet or exceed the given metric. Blackstone 10x multiple reflects 2014 consensus estimates. Blackstone 5

GSO

GSO s Business Today

Global footprint with over 250 employees in New York, London, Dublin and Houston Total Assets Under Management GSO Capital Partners $66.0 billion Alternative Investment Funds $35.2 billion Customized Credit Strategies Long Only $30.8 billion Mezzanine Funds Rescue Lending Funds BDCs (Small Cap Direct Lending) Hedge Fund Strategies CLOs Closed End & Commingled Funds, ETF and SMAs $7.8 billion $8.8 billion $11.0 billion $7.6 billion $20.3 billion $10.5 billion Private Market Strategies Public Market Strategies Note: The AUM for Blackstone, GSO or any specific fund, account or investment strategy presented in this Presentation may differ from any comparable AUM disclosure in other non-public or public sources. Certain of these differences are in some cases required by applicable regulation. Blackstone 2

Our Mission: Strong investment results across our strategies ($ in billions) 2013 Results Inception to Date (1) Strategy AUM Net Returns Net Returns Index (2) Private Market Strategies Rescue Lending Flagship Funds $8.6 24.3% 17.6% 9.2% Mezzanine Flagship Funds 5.4 17.9% 19.0% 10.4% Small Cap Direct Lending (BDCs) 11.0 16.5% 15.8% 14.1% Public Market Strategies Hedge Fund Strategies Flagship Funds $4.5 18.2% 9.4% 4.8% U.S. Leveraged Loans Composite (3) 7.8 5.1% 5.7% 5.0% Note: Past Performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. (1) Rescue Lending Flagship funds and Mezzanine Flagship funds returns shown from inception of the first flagship fund of each strategy (September 2009 and June 2007, respectively) through March 31, 2014. BDCs shown from inception of first fund in January 2009 through March 31, 2014. Hedge Fund Strategies Flagship Funds shown from inception (August 2005) through March 31, 2014. Leveraged Loans shown from December 2000 through March 31, 2014. (2) Indices, in order, are as follows: DJ CS Event Driven Distressed, CS High Yield Index + 200bps, 80% CS LLI / 20% CS HYI, HFRI Fund Weighted Composite and CS Leveraged Loan Index. (3) U.S. Leveraged Loans Composite includes U.S. CLO and other vehicles where at least 80% of the invested assets are senior secured bank loans. Performance is presented gross of fees. Estimated net returns for this composite are 3.8% and 4.5% for 2013 and ITD, respectively, assuming a 1.25% management fee. The performance of CLO portfolios included in this composite is calculated based on the unlevered underlying portfolio assets within the CLO structure. Actual management fees for accounts within this composite vary. CLOs within this composite also have an incentive fee specific to the fund, subject to an IRR hurdle, which is not included here. Blackstone 3

GSO s Evolution

Evolution of the GSO platform ($ in billions) December 31, 2008 March 31, 2014 Total AUM: $22.4 $66.0 Alternatives 5.9 35.2 Customized Credit Strategies 16.5 30.8 % of AUM from products that didn t exist in 2008 (1) 71% % of LPs invested in products that didn t exist in 2008 (1) 34% 71% of our AUM and 34% of LPs are invested in products that did not exist five years ago (1) Alternative assets only. Blackstone 5

Where have we grown? ($ in billions) As of December 31, 2008 As of March 31, 2014 Hedge Fund Strategies Flagship funds $2.7 $4.5 Mezzanine Flagship funds 2.0 5.4 Rescue Lending Flagship funds 8.6 Strategic SMAs (1) 5.3 BDCs 11.0 Other Credit Funds (2) 3.6 0.3 Customized Credit Strategies 14.1 30.8 Total AUM $22.4 $66.0 Over the past five years, $25 billion of our AUM growth has come from new products and strategies (1) Includes various SMAs, co-investments and opportunistic funds managed by GSO. (2) Includes legacy funds currently in wind down. Blackstone 6

How have we achieved this growth? Leverage Industry Themes Raise new pools of capital based on key industry themes developed within GSO and Blackstone Examples: energy and residential housing Capitalize on Market Dislocations and Regulatory Changes Rescue Lending Funds Business Development Corps (BDCs) CLO consolidation Strategic Partnerships with Large LPs Created over $5 billion in separate accounts with large LPs over past few years Capitalizes on LP trend to consolidate GP relationships Allows LPs to invest more capital quickly with better fees and greater transparency Retail Channels Products that capitalize on strong demand for yield by retail investors: Closed-End Funds, ETF, BDCs Tapping into private banks for distribution: Rescue Lending, Mezzanine and Hedge Funds Blackstone 7

Capitalizing on industry themes: Energy and Power GSO has invested over $15 billion in the Energy sector since 2005 Dedicated Energy team of 16 people with unique sector expertise and long-standing management relationships Energy fits extremely well within GSO s investment approach Deal flow driven by significant capital needs and fragmented nature of the industry Hard asset value coupled with commodity exposure should allow for downside protection and upside participation We have leveraged our Energy capability across the GSO platform $1 billion of Energy separate accounts Energy-focused BDC (~$3 billion) GSO believes high exposure to Energy investments has driven strong investment results across funds and has enabled us to raise larger sized funds Blackstone 8

2014 Blackstone Investor Day Select GSO Energy and Power investments Sub Sector / Theme Privately Originated Public Investments Upstream Midstream Pecos Service and Equipment Power Generation Lake Road Generating Calpeak All rights to the trademarks listed herein belong to their respective owners, and GSO s use hereof does not imply any affiliation with, or endorsement by, the owners of these trademarks. Blackstone 9

GSO s Energy investments touch the major U.S. oil & gas plays Bakken Utica Exploration & Production Midstream Power Services Note: Green shading represents key U.S. oil & gas production area. Blackstone 10

Capitalizing on industry themes: residential housing 2006 2007 2009 2013 2014 Bearish view Short positions GSO provides capital to mid cap homebuilders: Beazer Homes Plygem KB Homes Rescue financings for Morris Homes, KP1 Hedge fund positions in Beazer, istar, Quinn Group GSO forms dedicated $500 million Land Bank Fund 2011 2012 2008 Cautious but turning constructive Investment in Standard Pacific Positive view on homebuilding recovery GSO deploys capital across public and private funds Invested in Hovnanian, City Ventures, Miller Homes, CEMEX, Giant Cement, Cementos Portland and Realogy Land bank strategy initially deployed in hedge and mezzanine funds 2006 2007 2008 2009 2010 2011 2012 2013 Opportunistically invested $4 billion of capital across public and private strategies as our view on the housing recovery evolved (1) (1) Includes long investments made in GSO s Hedge Fund Strategies funds, Rescue Lending funds, Mezzanine funds, total commitments for GSO s dedicated Land Bank Fund and investments made by alternative investment SMAs managed by GSO since GSO s inception within the Homebuilder, Building Materials and Real Estate sectors. Blackstone 11

Select GSO homebuilder and building products investments Sub Sector / Theme Privately Originated Public Investments Homebuilders / Realtor Building Products REITs All rights to the trademarks listed herein belong to their respective owners, and GSO s use hereof does not imply any affiliation with, or endorsement by, the owners of these trademarks. Blackstone 12

Market dislocation and regulatory changes GSO s views on market opportunity Significant structural and regulatory changes in financial markets create opportunity for GSO Global investment banking model moved to Capital Lite Volcker Rule / Dodd-Frank / OCC Leverage Guidelines Basel III CLO skin in the game requirements / limited new issuance GSO Activities Rescue Lending Flagship Funds BDCs CLO Acquisitions Launch: September 2009 January 2009 April 2010 New AUM (1) : $8.6 billion $11 billion $15 billion Strategy: Rescue lending Small cap direct lending Consolidation of the CLO industry (1) Rescue Lending Flagship Funds New AUM reflects AUM of GSO s flagship Rescue Lending funds as of March 31, 2014. BDCs New AUM reflects AUM of GSO s Small Cap Direct Lending funds as of March 31, 2014. CLO Acquisitions New AUM reflects the dollar amount of CLOs acquired by GSO following April 2010. Blackstone 13

What s next? GSO s views: Credit markets remain frothy Yields and spreads at record lows Public market deals have more aggressive leverage, weaker covenants and lower credit quality Sets up well for next distressed cycle Activity in Europe picking up significantly Areas of Focus: European direct lending fund $2.5 billion Expand into emerging market corporate debt Additional capital for energy activities Forge new strategic partnerships with large LPs Blackstone 14

Why are we well positioned for the future? Investment Performance Superior results generated across the platform Believe we re top quartile performer in all of our major strategies Unique Competitive Advantages Ubiquitous presence in below investment grade corporate credit Scale enables us to do deals that others can t Blackstone / GSO brand globally recognized by companies and boards Tradition of Innovation Long track record of providing creative solutions Market volatility and dislocations are our opportunity to grow Culture Entrepreneurial group of 15 SMDs Strong cooperation across Blackstone and GSO Excellent alignment with our LPs Blackstone 15

Real Estate

Blackstone Real Estate Overview $81 Billion AUM Blackstone Real Estate 17% Net Returns (1) Only 1% Realized Losses $34 Billion of Capital Deployed Post-Crisis (2) Keys to Success Same Simple Strategy Buy it, Fix it, Sell it Same Investment Process Same People Current Environment Compelling Investment Opportunities, Particularly Outside the U.S. Competitive Landscape Radically Altered Limited New Construction Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. (1) BREP global funds include Pre-BREP, BREP I, BREP II, BREP III, BREP IV, BREP V, BREP VI and BREP VII; excludes BREP regional funds, co-investments and BREDS. (2) Reflects invested and committed capital. Blackstone 1

BREP Performance Summary Blackstone Real Estate Partners ( BREP ) has consistently delivered solid performance since 1991 BREP Global Funds Performance Summary (US$ in thousands) Investment Invested 3/31/2014 (1) Fund Period Capital Net IRR Pre-BREP 91-'93 $ 140,714 33% BREP I 94-'96 467,168 40% BREP II 96-'99 1,218,877 19% BREP III 99-'03 1,415,422 21% BREP IV 03-'05 2,737,219 14% BREP V 05-'07 5,756,971 10% BREP VI 07-'11 10,850,345 13% BREP VII 11-Present 9,300,871 28% Total $ 31,887,587 17% Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. (1) Pre-BREP through BREP III are substantially fully realized funds and BREP IV, BREP V, BREP VI and BREP VII represent realized and unrealized values as of March 31, 2014. Blackstone 2

Real Estate Assets Under Management Investment success has translated into tremendous fundraising success Fee-Earning Real Estate AUM ($ in billions) Total Real Estate AUM ($ in billions) $53 1Q 14 +827% +1074% $81 1Q 14 $6 $7 2005 2006 2007 2008 2009 2010 2011 2012 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 Blackstone 3

Evolution of Blackstone Real Estate Assets have become far more diversified by product type and geography AUM Pre-Crisis (2007) AUM Today (1Q 14) $26B BREP Global 85% BREP Co-Invest 12% $81B BREP Global 53% 10% BREP Europe 5% BREP Co-Invest BREDS Drawdown BXMT BREDS Liquid BREDS Co-Invest BREDS 11% BREP Europe 18% Core+ 1% Blackstone 4

Global Real Estate Platform Growth driven by a highly integrated global investment platform Europe 60 Professionals BREP BREDS Core+ 270+ Professionals globally North America 156 Professionals BREP BREDS Core+ Latin America 4 Professionals (1) BREP Asia 59 Professionals BREP BREDS Core+ 20 Partners average 13 years at Blackstone 1 Global Investment Committee (1) Includes professionals in New York dedicated to investing in Latin America. Blackstone 5

Operating Platforms Operating platforms provide a competitive edge in identifying market trends, deploying capital and/or creating asset value Office Hospitality Retail Industrial Residential/ Multifamily Madrid MF Note: The above platforms represent select investments made by the equity platform of the Blackstone Real Estate Group and should not be considered reflective of investments made by other funds. Blackstone 6

Real Estate Invested Capital Active capital deployment continues with geographic and product expansion Real Estate Invested Capital ($ in millions) $10,250 $8,515 $6,600 $4,217 $973 2009 2010 2011 2012 2013 Blackstone 7

Key Questions for Blackstone Real Estate

Where Are We in the Global Real Estate Cycle?

Where Are We in the Global Real Estate Cycle? No major global market is yet experiencing an excess of cranes or capital Global Real Estate Cycle Distressed Phase Excess Phase Depressed Asset Values Peaking Asset Values No Financing Abundant Financing Limited New Supply Europe Asia U.S. Lots of New Supply Recent Investments Europe Distress Asia Capital Dislocation U.S. Recovery Tower NPL Portfolio Pan-Europe 1.1B SCP China Retail $1.8B Cosmopolitan Las Vegas Hotel (1) $1.7B (1) While BREP is under contract to acquire this investment, there is no assurance that the transaction will close as expected or at all. Blackstone 10

U.S. Single Family Overview Lack of new supply supports further appreciation U.S. Single Family Housing Completions (1) (Units in thousands) 1,654 110 100 90 Home Price Index (2) Invitation Homes Markets Still down 27% from 06 569 80 70 60 50 (1) Census Bureau, February 2014. (2) Representative of Invitation Homes markets. John Burns Home Value Index as of May 2014 (Index 100 = July 2006). Blackstone 11

What Is the Status of Realizations?

What Is the Status of Realizations? Distributions to limited partners are on the rise and should accelerate Blackstone Real Estate Gross Distributions ($ in millions) $7,443 $3,708 $1,848 +120% $2,055 $30 $213 $681 $932 2008 2009 2010 2011 2012 2013 Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. 1Q 13 1Q 14 Blackstone 13

Realizations 77% of BREP s $21 billion of unrealized gains is concentrated in public holdings and an office portfolio in liquidation BREP/Co-Invest Unrealized Gains ($ in millions) Public Holdings and Office Portfolio in Liquidation Unrealized Gains $21,161 77% Unrealized Gains Invested Capital $32,965 BREP/Co-Invest Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. Blackstone 14

Real Estate Carried Interest Net accrued carry continues to grow despite over $660 million paid out since 2010 Net Accrued Carried Interest (1) ($ in millions) $2,424 $1,446 Fund 1Q 14 Net Accrued Carried Interest BREP VI $1,284 BREP V 623 $311 $918 BREP VII 358 BREP Europe III 117 BREP / BREDS Other 42 Total $2,424 $17 1Q 10 1Q 11 1Q 12 1Q 13 1Q 14 Note: Realized Carry is net of performance fee compensation. Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. (1) Carried Interest is net of performance fee compensation and includes co-investment capital for respective funds. Blackstone 15

Is Blackstone Real Estate Too Big to Keep Growing?

Best-In-Class Real Estate Platform Blackstone has the world s preeminent global real estate platform with significant growth opportunities ahead Equity $72 billion equity under management Debt $9 billion equity under management Opportunistic Core+ High Yield 1st Mortgage Liquid North America Europe $13.3B BREP VII $6.9B BREP Europe IV $1.1B SMAs $0.5B SMAs $4.0B BREDS II $2.8B BXMT $0.8B CMBS/BREIF Asia $3.8B ($5.0B target) BREP Asia Future Opportunity Future Opportunity Latin America Future Opportunity Shading indicates areas of opportunity (1) (1) There is no assurance that these products / growth areas will ever be realized and if realized will be profitable. Blackstone 17

Blackstone Core+ Summary Core+ initiative leverages platform to bring scale, speed, certainty and market insights to the core plus space Blackstone Real Estate Core+ Investments Select Investments (1) $1.6bn Edens Various, U.S. $- Alban Gate London Nov 13 1Q 14 (1) Represents select Core+ investments that have closed to date. Blackstone 18

Blackstone Real Estate Key Takeaways Performance Drives Business 17% Net IRR BREP Global Funds 1% Realized Losses BREP Global Funds Fundraising Raised Since 07: In Market: $56 billion BREP Asia, Core+, BREIF & BXMT Robust Capital Deployment Invested Since 09: Dry Powder (1) : $34 billion $18 billion + Recycling Ability Accelerating Dispositions (2) Distributions: Performance Fees: Public Equities: 1Q 14: Up 120% YOY 1Q 14: Up 171% YOY $22 billion (2.4x multiple) Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. (1) Represents illiquid drawdown funds only; excludes marketable vehicles; includes both Fee-earning (third party) capital and general partner / employee commitments that do not earn fees. (2) Distributions and performance fees vs. 1Q 13. Performance fees are realized only and gross of performance fee compensation. Public Equity amount represents unrealized value of BREP s public equity holdings. Blackstone 19

Private Equity

Our Mission We enable pension plans, endowments and governments to meet their future obligations We invest on behalf of over half the retirees in the U.S.; 37 million people globally We invest in companies to grow them and in large projects that wouldn t have gotten off the ground without our sponsorship We have the capability and expertise to drive transformational change in our companies We have the flexibility to invest all over the world in different sectors and transaction types out of global funds We seek to find value where others don t and identify sectors / companies with capital needs not readily met in the public markets Blackstone 1

Our Commitment We must have a specific intervention strategy to improve the target company The anticipated unlevered returns must readily beat the public markets We have to retain the best investors and operators in the industry Blackstone 2

What differentiates us? Single global fund One investment committee; one culture; one global deal team Flexibility to allocate capital to best opportunities globally Consistent decision making; consistent results Scale platform with global reach Offices on 3 continents: 105 investment professionals around the globe 78 portfolio companies with $90 billion of annual revenue and 617,000 employees One of largest pools of committed capital in Private Equity with $16 billion to BCP VI Leverage intellectual capital from all Blackstone businesses Capability to improve performance of companies Strong leadership under Dave Calhoun Functional experts in key areas Company-specific executive advisors with significant experience Well-defined investment strategy and discipline Blackstone 3

Total Gross MOIC 2014 Blackstone Investor Day Consistently strong performance over 26 years Closed Funds Investing Funds 2.6x 2.5x 2.3x 1.3x 2.8x 1.5x 1.4x 1.7x BCP I (1987) BCP II (1993) BCP III (1997) BCOM (2000) BCP IV (2002) BCP V (2006) BCP VI (2011) Net IRRs 19% 32% 14% 6% 37% 7% 17% 49% BEP (2011) Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of this presentation book for more information on performance. BEP MOIC shown above is pro forma for reclass of certain partnership expenses. Public filings reflect 1.6x gross MOIC. Blackstone 4

Strong recent momentum (performance from January 1, 2013) 17 portfolio companies IPO d or sold (1) $14.8 billion of cash returned to BCP LPs (2) average realization MOIC of 2.5x (3) $10.7 billion market capitalization created for companies taken public 28.3% cumulative BCP net IRR 48.1% gross IRR for realizations 15 new portfolio companies with $3.8 billion of invested / committed capital Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of this presentation book for more information on performance. (1) Excludes partial dispositions, with the exception of Apria, and any fully realized deals where the prior quarter carrying value was less than $100 million. (2) Includes $1.4 billion of proceeds from co-invest. (3) MOIC represents multiple for full dispositions only. Blackstone 5

Reason for caution in current market environment Credit availability high; cost historically low Equity markets at all-time high Options for sellers numerous IPO market wide open Corporate buyers active Credit markets funding dividends Private Equity firms re-loaded and confident LBO prices rising Discipline waning Risks abound Underlying economic fundamentals good, not great Blackstone 6

Credit availability high; cost historically low High Yield / Leverage Loan New Issuance (1) ($ in billions) High Yield Yield to Worst / Default Rate (2) $1,746 13.0% $1,375 $1,113 $920 1,316 $745 990 712 $493 $500 654 415 307 438 331 401 430 385 55 193 267 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Run Run Rate Rate High Yield Leveraged Loan $1,200 $732 1,019 584 180 148 2007 2003-2005 2007 2003-2005 Average 11.0% 9.0% 7.0% 5.3% 5.0% 5.0% 6/09 12/09 5/10 10/10 4/11 9/11 2/12 7/12 12/12 6/13 11/13 4/14 HY YTW Loan Index Yield HY YTW 20-Yr Avg. 9.9% Loan Index Yield 20-Yr Avg. 8.6% HY YTW 10-Yr Avg. 8.5% Loan Index Yield 10-Yr Avg. 8.0% Driving up purchase prices particularly for large assets in competitive situations (1) Source: CS Leveraged Finance Strategy as of March 31, 2014. Volume is U.S. and Western Europe combined. (2) Source: CS Leveraged Finance Monthly Index as of April 30, 2014. Blackstone 7

Stock markets at all-time high; options for sellers numerous 2,000 S&P 500 (January 1, 2004 Present) $100 IPO Volume (U.S. / Europe) ($ in billions) $93B $80 1,500 $60 1,000 $40 $20 500 2004 2006 2008 2010 2012 2014 $0 2009 2010 2011 2012 2013 $80 $60 $40 $20 Dividend Recap Volume (U.S. / Europe) ($ in billions) $76B $800 $600 $400 Corp-Cash Acquisitions (U.S. / Europe) ($ in billions) $639B $0 2009 2010 2011 2012 2013 Source: Bloomberg, S&P 500, S&P LCD, Thomson Financial. $200 2009 2010 2011 2012 2013 Blackstone 8

6.7x 6.4x 6.7x 6.9x 7.5x 7.5x 8.4x 8.5x 8.4x 9.9x 9.4x 9.1x 8.7x 8.7x 1.5x 2014 Blackstone Investor Day LBO prices rising EBITDA Multiples 10.2x 4Q 13 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Though valuations are not at all-time highs, assets appear expensive in relation to growth prospects Source: S&P LCD, 4Q 2013, deals with TEV of $500 million or more. Blackstone 9

How we are navigating the environment Adhere to our core discipline Ability to intervene to change performance of company actions under our control Not a passive recipient of the market return in an auction Unlevered returns drive value decision Focus on yield, not comparable trading multiples Proactive deal sourcing and resources allocated to most appealing sectors / opportunities Mismatch between requirements for capital and its supply Growth platforms Transformational operating intervention Blackstone 10

How we are navigating the environment (Cont d) Mismatch between requirements for capital and its supply 23% BCP VI Invested / Committed 14.0% 18.8% Unlevered Hold Forever Gross Returns (1) Growth platforms 24% BCP VI Invested / Committed 10.2% 15.6% Unlevered 5-Year Gross IRR (1) Transformational operating intervention 29% BCP VI Invested / Committed 10.5%-16.6% Unlevered 5-Year Gross IRR (1) (1) Range represents targeted returns based on underwriting assumptions at the time of the deal. There can be no assurance that any Blackstone Fund will achieve its objectives or avoid substantial losses. These selected examples may not be representative of all transactions of a given type or of investments generally, both with respect to operating metrics and performance, and it should not be assumed that BCP will make comparable or equally successful investments in the future. See Important Disclosures section at the front of the presentation book for more information. Blackstone 11

We are well positioned for the future Excellent recent performance $14.8 billion returned in cash / $10.7 billion market capitalization created (1) BCP V de-risked with 1.2x cost in cash, publicly traded stock (1) BCP VI / BEP great performance so far 17% / 49% net IRR Committed to our well-defined investment approach Ability to intervene to drive value Unlevered returns drive valuation decisions Proactive, targeted sourcing program Invest in and maintain world-class team Significant investment in portfolio company intervention team Develop, promote, empower young investment talent Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of this presentation book for more information on performance. (1) As of April 30, 2014. Blackstone 12

What s next? Actively marketing next energy fund substantially larger than first Global fund will be in the market at end of year Several initiatives underway to leverage strong Blackstone relationship with largest global LPs to grow AUM Note: See Important Disclosures section at the front of this presentation book for more information. Blackstone 13

Portfolio Operations

Blackstone s Portfolio Operations group drives value Strong track record improving operations: 20% 15% 10% 5% 0% -5% -10% 9.4% -2.1% Quarterly EBITDA Trends EBITDA YoY% Growth (Decline) 10.9% BX Portfolio -6.2% Functional experts deliver scale and expertise: Lean / Six Sigma Healthcare / Benefit plans IT Energy Sourcing S&P 5.2% Leading Platform 11.2% 2.5% 2.5% 15.2% 6.7% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 Blackstone 1

Recent enhancements extend performance advantage Early appointment of Executive Advisors (Operators) to Board expand CEO reach Rigorous Leadership assessments early and often Early mobilization for key initiatives growth and productivity Example Gates Leveraging our Private advantage Blackstone 2

Tactical Opportunities

Blackstone Tactical Opportunities ( Tac Opps ) was created to pursue opportunistic investing a strategy in which we re well placed to succeed Dramatic change in competitive environment Bank exit due to regulatory restrictions (e.g., Volcker) Hedge fund use of side pockets severely limited Few (if any) managers have depth and diversity of the Blackstone platform Private Equity Real Estate Hedge Fund Solutions Credit Secondary Fund Solutions Financial Advisory Blackstone Tactical Opportunities Tac Opps leverages the full breadth of the Blackstone platform Blackstone 2

Tac Opps invests across asset classes, capital structures and geographies and seeks to generate attractive risk-adjusted returns Opportunistic Strategy Nimble and swift in the face of changing market conditions Capture differences in relative risk / return across asset classes Thematic approach Flexible Capital Can invest across asset classes, capital structures and geographies Solutions provider to sellers Attractive Risk-Adjusted Returns Team with Depth as well as Breadth Target mid-teens net returns on a portfolio of differentiated / uncorrelated investments (1) Focus on downside protection, including a current yield component Well-diversified, dedicated team 30 professionals across U.S., Europe & Asia Leverages Blackstone a leader in each of its asset management & advisory businesses Seasoned and experienced Investment Committee (1) Targeted returns based on Blackstone underwriting criteria at time of investment. There can be no assurance that such returns will be realized or that the fund will avoid substantial losses. Blackstone 3

Tac Opps pursues differentiated investments outside of traditional alternative buckets Tac Opps Investments: Alternative Investment Landscape Typically do not fall neatly in any asset class (e.g., U.S. NPLs: credit / real assets) Structured to minimize downside risk and / or amplify upside potential (e.g., Eletson) Traditional Real Assets Servicing Advances U.K. Resi. Development Finance Platform Wireless Tower Cable Ground Leases Spectrum Single Family Rental Finance Platform LPG Shipping U.S. NPLs Regulatory Capital Can complement and enhance traditional investor portfolios Traditional Private Equity Traditional Credit U.K. Pension Liabilities CLO Equity Blackstone 4

Two years into launching the business, investor reception has been positive, deal flow has been strong and early results highly promising AUM Raised $5.6 billion in first vintage fund raise Seeking to launch second fund later this year Investments Invested / committed over $3 billion in 30 deals across asset classes, capital structures and geographies Returns 18% gross (inception through March 31, 2014) Note: Past performance is not necessarily indicative of future results. See Important Disclosure section at the front of this presentation book for more information. Net return of the portfolio as of March 31, 2014 is approximately 13%. Blackstone 5

Strategic Partners

Market-leading provider of liquidity solutions to owners of private equity partnership interests Proven Strategy Acquires secondary interests in mature, high-quality private equity funds from investors seeking liquidity on a fair, timely and confidential basis Experienced Team with Global Reach Dedicated team of 31 investment professionals in New York, London and San Francisco Led by Founder and Co-Head Stephen Can and Co-Head Verdun Perry, who have each been with Strategic Partners since inception Consistent Focus Primarily targets secondary opportunities to acquire private investment funds on a global basis Strong Investment Track Record Completed more than 800 transactions representing interests in over 1,700 unique underlying funds Aggregate gross and net IRRs of 20% and 17%, respectively, from inception through December 31, 2013 across SP I - V Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. The figures above represent the cumulative performance of SP I - V. Because this is cumulative information, these figures do not reflect the actual results achieved by any individual fund or any investor therein. Blackstone 1

2014 2011 2008 2005 2003 2001 2014 Blackstone Investor Day Over $14 billion raised since inception (1) Strategic Partners LBO-Centric Venture Capital Overage Real Estate SP I $0.8 billion 18% Net IRR SP II $1.6 billion 31% Net IRR SP II RE $300 million SP III $1.9 billion 6% Net IRR SP III VC $210 million SP III RE $315 million SP IV $2.1 billion 15% Net IRR SP IV VC $203 million SP IV RE $300 million SP V $2.4 billion 46% Net IRR SP V VC $103 million SP V Overage $412 million SP V RE $211 million Currently Raising Our Latest Secondary Fund Future Real Estate Note: Past performance is not necessarily indicative of future results. See Important Disclosures section at the front of the presentation book. (1) Capital raised as of May 31, 2014, including commitments to latest secondary fund. Blackstone 2

IRR 2014 Blackstone Investor Day Properly executed secondary investing generally provides several advantages relative to primary investing Investment Characteristic Secondary Investment Primary Investment Assets Acquired Funded, identifiable assets at a more mature stage Blind pool Year of Acquisition of Underlying Fund Years 3 7 At inception Cost of Investment Typically at a discount to NAV Invested capital Return of Capital Years 0 7 Years 5 10 Diversification By vintage year, type, size, sector and geography Limited to fund s portfolio Reduction of Blind Pool Risk Private Equity J-curve Earlier Return of Capital Reduced Cost (Discount to NAV) Typical Primary Investment Time Typical Secondary Investment Blackstone 3

Primary Commitments Primary Commitments 2014 Blackstone Investor Day Large addressable market, with strong industry fundamentals 600 500 400 300 200 Global Capital Commitments to Private Equity Partnerships (1) (US$ in billions) 185 105 100 156 44 53 67 20 21 27 20 21 27 44 53 67 105 0 307 156 185 187 307 187 307 98 97 149 98 97 395 506 486 307 395 149 506 486 277 305 231 418 224 277 305 231 224 418 45 Available Global Secondary Private Equity Capital (2) (US$ in billions) 35 36 42 45 Secondary Volume -100 1 1 1 1 1 1 1 2 2 3 2 2 5 7 7 10 18 20 10 23 25 25 28 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 LBO Real Estate / Other Secondary Commitments Venture Capital Secondary Volume Jan-2010 Jan-2011 Jan-2012 Jan-2013 Jan-2014 Sales driven by asset allocation, risk management, liquidity, regulatory reform or other strategic needs Enormous saleable asset backlog, with over $1.5 trillion $2.5 trillion of unrealized assets Secondary private equity is a niche and inefficient market with current transaction volume representing less than 2% of global private equity exposure; there is significant room to grow Note: Real Estate PE Capital prior to 1994 represents negligible amount; Real Estate / Other includes Real Estate, Mezzanine, Distressed Debt, Fund of Funds and Other. (1) Commitment data from Thomson Financial Venture Economics and Preqin; secondary volume data from Cogent Partners and SP estimates. (2) UBS Private Funds Group. Blackstone 4

Seller motivations are dynamic and driven by a variety of factors Market Issue Secondary Transaction Driver Active Portfolio Management Financial Regulatory Reform Frictional Displacement Divestment of non-core GP relationships Strategic and opportunistic sales from limited partners Pressing liquidity needs De-leveraging, bank spin-outs, balance sheet reductions Overhaul of illiquid asset portfolios Growing number of tail-end portfolios Capitalization on fund of fund opportunities Attractive opportunities continue to emerge in secondary private equity Blackstone 5

Growth opportunities for Strategic Partners Current Future LBO / RE Secondaries Early Secondaries (<50% Funded) Infra. / Real Assets Secondaries Co- Investments Primaries Fund Admin. Over 800 transactions completed since 2000, acquiring over 1,700 unique underlying interests in LBO, Mezzanine, Real Estate, VC, fund of funds and other assets (1) $14+B raised Provides diversified exposure to high quality assets that are significantly less funded than traditional secondary purchases $1B raised Infrastructure and Real Assets Program dedicated to acquiring mature, yielding assets in high quality infrastructure, energy, timber and other real asset funds (1) Capital raised as of May 31, 2014, including commitments to latest secondary fund. Ability to access co-investment opportunities alongside high quality managers. Strategic Partners owns fund interests managed by more than 700 general partners Access to wide array of fund managers and strategies, enhancing ability to build customized primary portfolios One of the most comprehensive fund monitoring databases, providing real-time information on portfolio assets and managers Blackstone 6

Key ingredients for a successful secondary business Sourcing Broad, global sourcing capabilities, many repeat sellers Pricing A market leader in human and intellectual capital (+1,700 funds owned) Closing Most experienced secondary buyer in the world (+800 deals executed since inception) Performance Strong risk-adjusted returns and earlier return of capital Consistent top quartile performer, with exceptional diversification Fundraising Final closing for our latest secondary offering expected end of July 2014 People High integrity, respectful, team-oriented Hungry for growth; Love to win Blackstone 7

Private Wealth

Relative to institutions, individual investors are under-allocated to Alternatives Allocation to Alternatives 19.4% 26.0% 2.0 3.0% U.S. Pensions(1) U.S. Endowments(2) Individual Investors (1) 2013 Pensions and Investments annual plan sponsor survey. (2) National Association of College and University Business Officers 2013 Study (Equal-weighted Average). (3) Cerulli Research. (3) Blackstone 1

The larger wealth management firms are recommending increased allocations Top 5 Firms Total AUM = $5 trillion (1) Recommended Alternative Allocations = 5% 20% (1) Actual Alternative Allocations = 2% 3% (2) Every 1% in Additional Alternative Allocations = $50 billion in AUM (1) Client research reports. Allocations as of December 31, 2013. Investment strategists at these firms typically recommend clients allocate 5% 20% to Alternative Allocation depending on risk and liquidity preferences. (2) Cerulli Research. Allocations as of December 31, 2013. The average client at these firms typically has 2% 3% in Alternative Investments. Blackstone 2

Capitalizing on the sizeable opportunity in Private Wealth Alternatives continue to be an area of focus and growth for the larger wealth management firms because of their appeal to higher net worth investors Net new assets Financial pressures have forced these firms to reduce their relationships and rely on key partners more heavily for product and sales support The complex nature of Alternatives suggests that the training and education of Financial Advisors will lead to increased product penetration Blackstone 3

Blackstone U: An Alternative education Blackstone U provides education on our businesses what they are, how they work, why they might benefit high net worth clients Blackstone U gives advisors the chance to come to Blackstone to learn directly from investment heads across all of our businesses Advisors may earn CE Credit for attending the event (1) (1) Blackstone works with the accrediting organizations IMCA and CFP to provide CE credits to members. Blackstone 4

Sales, service, delivery Three Main Channels Partner Firms: Accessing high-net-worth clients at large banks and wire-houses with existing funds and bespoke product Direct Investors: Direct relationships with select family office and ultra high-net-worth investors Sub-advisory: Reaching mass affluent investors through sub-advised products with greater liquidity Blackstone 5

Product Diversity: Episodic drawdown funds, bespoke investment products, and a suite of current and prospective evergreen funds Episodic Bespoke Evergreen Global and Regional Real Estate Multi-strategy Hedge Fund of Fund (SMA) Long / Short Equity Hedge FoF (RIC) Global Energy Private Equity Secondaries GP Stakes in Hedge Funds Tactical Opportunities Mezzanine and Distressed Debt Global Buyout SMA into Tactical Opportunities Broad Allocation to Illiquid Funds Liquid Real Estate Income Fund (RIC) Credit Opportunity (1) Real Estate Opportunity (1) Hedge Fund (BAAM) Opportunity (1) (1) In development. Blackstone 6

Sales in the Private Wealth channel are growing steadily Blackstone s Retail Fundraising ($ in billions) $9.3 $7.8 $5.9 $2.5 $2.7 $0.6 2009 2010 2011 2012 2013 LTM 1Q 14 Blackstone 7

The Private Wealth segment is becoming a larger part of Blackstone s overall investor profile Private Wealth 2010 (1) 8% Private Wealth Management AUM at Blackstone Private Wealth 12% Today (1) As of December 31, 2010. $128bn in total AUM $272bn in total AUM Blackstone 8

Blackstone Alternative Asset Management

BAAM s growth has outpaced the hedge fund industry Cumulative Growth in AUM (1)(2) (Jan-2009 Dec-2013) Percentage Change in AUM (1)(2)(3) (Jan-2009 Dec-2013) 160% 120% BAAM 130% 80% 40% 10 Largest HFs as of Jan-09 36% 0% 10 Largest FoFs as of Jan-09 29% -40% Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 BAAM Large FoF HF Industry (1) Source: InvestHedge Billion Dollar Club. Data as of December 2013. (2) Represents data from 1/1/2009 to 12/31/2013. (3) Largest HFs and FoFs equal the 10 largest funds measured by AUM excluding BAAM. Source: InvestHedge Billion Dollar Club, December 2013. Blackstone 1

BAAM has outperformed industry benchmarks (1) Annualized outperformance: BAAM Composite (net) vs. industry benchmarks (Jan-2000 Dec-2013) (2) Annualized reduced volatility: BAAM Composite (net) vs. industry benchmarks (Jan-2000 Dec-2013) (2) 3.0% 3.2% 3.2% 2.2% -0.64% -1.23% -5.41% -10.96% HFRI FoF Composite HFRX Global HF Index 60% MSCI TR & 40% Barclays Agg. S&P 500 TR HFRI FoF Composite HFRX Global HF Index 60% MSCI TR & 40% Barclays Agg. S&P 500 TR (1) Performance is shown since J. Tomilson Hill became President and CEO of BAAM. (2) Past performance is not necessarily indicative of future results. Composite performance presented does not include all funds or strategies managed by BAAM. See disclosures at the beginning of this presentation for a description of the composite. Blackstone 2

Manufacturing new capacity drives growth and revenue in BAAM s traditional business lines BAAM Principal Solutions ( BPS ): traditional commingled and customized solutions Executed Deals (Jan-2012 Apr-2014 (1) ) Negotiated Structures/Transactions (Apr-2014 Allocations (2) ) Seed Deals 6 Total: 138 Total: 65% Special Situations 53 Fee Discounts 44 AUM: $18bn Traditional Structures Negotiated Structures & Transactions AUM: $38bn Customized Capacity 35 (1) Count includes customized vehicles, vehicles with negotiated fee discounts, seeding platform funds and co-investment deals (special situations) that occurred since 2012. Volume does not double count (i.e., where a vehicle is customized capacity and has a negotiated fee discount, that vehicle is counted only once). (2) Calculated by dividing total amount invested by BAAM in all customized vehicles, seeding platform funds, vehicles with negotiated fee discounts, and special situations co-investments (BSOF transactions) by BAAM's total AUM as of April 1, 2014. For purposes of this slide, BAAM includes BAAM s affiliated advisors. Blackstone 3

BAAM has diversified its AUM and revenue across multiple business lines 2013 2016 Forecast AUM Breakdown 16% 84% 33% 67% Next Generation Businesses 1) Direct Investing 2) Hedge Fund Ownership 17% 3) Liquid Alternatives Revenue Breakdown 83% 44% 56% BAAM Principal Solutions Next Generation Businesses Blackstone 4

Direct investing and hedge fund ownership drive increased profitability Idea sourcing Direct ownership Direct Investing $5.5bn AUM Trading and hedging decisions Single layer of fees Hedge Fund Ownership $5.8bn AUM Direct economic participation Leveraged to industry growth Very long duration Monetization potential AUM of Managers Seeded by BAAM ($ in billions) Our direct investing platform has produced returns in line with our composite of multi-strategy hedge funds, while achieving a higher Sharpe ratio Future vision: Multi-manager HF platform $25 $20 $15 $10 $5 $0 2007 2008 2009 2010 2011 2012 2013 YTD 2014 Future vision: GP stakes, 3 rd Seed fund Blackstone 5

Liquid alternatives hold growth potential Liquid Alternatives $2.0bn AUM Differentiation by managing risks and creating capacity AUM Growth: Alternative Mutual Funds (2) ($ in billions) 10% 8% 6% 4% BAAM Mutual Fund performance since inception (1) $140 $120 $100 $80 28% CAGR ( 09 12)? ( 13 and beyond) 2% 0% -2% $60 $40 $20 13% CAGR ( 04 08) BAAM Mutual Fund (Net) HFRI FoF Diversified $0 Future vision: Mutual funds, UCITS, EM bonds (1) Past performance is not necessarily indicative of future results. Inception date was 8/6/13. Please see additional disclosures at the front of this presentation. The BAAM Mutual Fund is not available for investment by the general public. (2) Morningstar: as of 12/31/13. Blackstone 6

BAAM s scale and long term investments in key capabilities have created significant barriers to entry Human Capital 234 BAAM professionals Worldwide (1) 100 Investment professionals Worldwide (1) Culture of Entrepreneurship New strategies New markets New structures Value Proposition 60%+ Of historical inflows from existing clients (2) 50% 100% Of initial capital for new business lines often comes from existing clients 50+ Annual run rate deals negotiated with managers to create custom exposures BX Access to the broader Blackstone team $20 million+ Spent annually on investment technology 18 Clients utilize proprietary portfolio and risk management system (1) As of 6/1/14. (2) Average from 2000 2013. Blackstone 7

BAAM is a high-growth business BAAM has maintained strong financial performance across major metrics Hedge Fund Solutions ( HFS ) Summary Financials ($ in millions) 2009 2013 CAGR AUM $28,799 $55,657 18% Revenue 313 649 20% Economic Income 170 377 22% while making a significant contribution to Blackstone Base Earnings (1) HFS as % of BX 2009 22.1% 2010 28.4% 2011 24.7% 2012 25.7% 2013 27.6% 5-yr Average 25.9% (1) Represents Economic Income excluding Performance Fee Revenues, Total Investment Income (Loss) and Performance Fee Compensation for the respective periods. Blackstone 8

Appendix: Industry Dynamics Should Support BAAM s Continued Growth

A strong outlook for the hedge fund industry should further strengthen BAAM s growth trajectory AUM Growth (Hedge Fund Industry) (1) ($ in billions) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2001 2003 2005 2007 2009 2011 2013 (1) Source: HFR Global Hedge Fund Industry Report, 12/31/13. (2) Source: Citi Investors Services Annual Hedge Fund Survey, May 2014. 2014 2018 Projections (2) Blackstone 10

Hedge funds becoming a larger part of institutional portfolios Pension Funds are increasing allocations to hedge funds Average Pension Fund Allocation to Hedge Funds (1) 4.2% 6.4% 2009 2010 2013 6.8% Nearly half of institutions, including 52% of pension funds, reported increased hedge fund holdings during 2013 (2) Pension funds, in particular, are increasing their hedge fund investments, with over 62% of them planning to grow such allocations in 2014 (2) Allocations to alternatives, including hedge funds, now account for nearly one fifth of global pension fund AUM, compared to 5% only 15 years ago, with demand expected to continue (2) (1) Source: McKinsey, The Mainstreaming of Alternative Investments, 2013. Represents pension funds in the U.S., Canada, Australia, Japan, Netherlands, Switzerland and U.K. (2) Source: Deutsche Bank s Annual Alternative Investment Survey, 2014. Blackstone 11

Blackstone Financials Update & Conclusion

Momentum: A record twelve months with strengthening forward indicators (Dollars in millions) Economic Net Income 73% Increase $3,700 Fee Related Earnings 13% Increase Distributable Earnings 46% Increase $42 billion Total Capital Returned over LTM $1,957 $2,132 $691 $783 $1,345 $62 billion Gross Inflows over LTM 1Q'13 LTM 1Q'14 LTM 1Q'13 LTM 1Q'14 LTM 1Q'13 LTM 1Q'14 LTM $22 billion LTM Capital Invested / Committed Note: LTM represents the last twelve months. Blackstone 1

Growth: Consistent, best-in-class growth over the last several years Fee-Earning AUM (Dollars in billions) $204 Total AUM (Dollars in billions) $272 $91 $95 2008 2009 2010 2011 2012 2013 1Q'14 2008 2009 2010 2011 2012 2013 1Q'14 Distributable Earnings (Dollars in millions) $1,957 Realizations (Dollars in billions) $33 $461 2008 2009 2010 2011 2012 2013 1Q'14 LTM $1 2008 2009 2010 2011 2012 2013 1Q'14 LTM Blackstone 2

Potential: Alternative Managers are gaining share as LPs continue an accelerating trend of allocating to higher returning private markets Over 150 Public Asset Managers (1) Alternative Manager Allocation Drivers 8 Public Alternative Asset Managers Public Asset Managers (1) $12.1 Traditionals Superior long-term returns Increasing allocations Not public market dependent $272 Public Alternatives $199 $159 Fewer scale competitors $102 $86 $77 $63 $43 $1.0 Alternatives $13.1 trillion Assets Under Management Higher manager return dispersion Totals may not add due to rounding. Data sourced from S&P Capital IQ and company filings. (1) Public Traditional Asset Managers with a market capitalization of $75 million or more based on closing stock price as of June 5, 2014 using available data. $1.0 trillion Assets Under Management Blackstone 3

Positioning: The leader in the fastest-growing asset management segment Since 2011, Alternatives are growing faster than Traditionals Total AUM Growth: 2011 1Q 14 (CAGR) and Blackstone is the fastest growing in the Alternative space Total AUM and Capital Raised: 2011 1Q 14 (Dollars in billions) $547 19% 22% $272 6% 6% 10% 19% $153 28% $167 61% Traditional Asset Managers Top 4 Alternative Competitors Blackstone Top 4 Alternative Competitors Blackstone Indicates Organic Growth (1) Indicates Capital Raised Totals may not add due to rounding. Data sourced from company filings. Compounded Annual Growth Rate ( CAGR ). Traditional Asset Managers include: AB, AMG, BEN, BLK, EV, FII, IVZ, JNS, LM, TROW and WDR. Top 4 Competitors Combined include: APO, CG, KKR and OAK. (1) Organic growth strips out acquisitions and includes top 11 public traditional managers. Blackstone 4

Innovation: Integrated investment platform exposed to opportunities around the world and moves quickly to develop new strategies Total AUM (Dollars in billions) $272 Total Capital Invested (Dollars in billions) $18 43% 1Q 14 LTM Capital Invested outside of North America $122 $95 $9 $150 $86 2008 1Q'14 $8 $7 $10 $7 2008 1Q'14 LTM $129 billion Gross Inflows in New Strategies (1) since 2008 $97 billion Gross Inflows in Existing Strategies since 2008 Existing Strategies (2) (1) New Strategies (1) New Strategies include acquisitions. (2) Existing strategies at the time of the IPO. Blackstone 5

Diversity: Blackstone has the most diversified and balanced Fee Revenues Carlyle KKR Real Assets Fund of Funds 17% 15% 22% Global Market Strategies Public Markets 28% 20% Capital Markets Advisory 12% Private Equity 46% Corporate Private Equity 53% Private Markets Credit 18% 24% Apollo Ares Private Equity 34% 4% Real Estate Private Equity 19% 12% Real Estate Hedge Fund Solutions 19% 28% Real Estate Credit 62% Direct Lending and Tradable Credit 69% Data as of March 31, 2014. Note: Fee Revenues for Blackstone represent Total Management and Advisory Fees, Net, Interest Income and Dividend Revenue and Other Revenue. Blackstone 6

Balance: Continuing to grow at a rapid pace while maintaining diversity and growing the competitive advantage over peers Total AUM (Dollars in billions) $272 $66 CAGR 23% 187% Total AUM Growth Since 2008 $95 $81 $23 $24 $24 $66 $24 2008 1Q 14 $58 19% Private Equity Real Estate Hedge Fund Solutions Credit 26% 21% $73 billion Realizations since 2008 $48 billion 1Q 14 Dry Powder Blackstone 7

Value Realization: Drives a shift in the earnings mix while value creation remains robust, which is an indicator of future earnings Economic Income (Dollars in millions) $3,596 $1,707 $3,783 $1,785 31% Economic Income CAGR since 2010 $2,041 $1,581 $1,585 $875 $1,144 $1,216 $830 $814 $466 $272 $225 $478 $546 $700 $745 $783 2010 2011 2012 2013 1Q'14 LTM 35% cash flow components (1) CAGR since 2010 53% of earnings related to cash flow components (1), up from 47% in 2010 Fee Related Earnings Net Realizations Net Unrealized Totals may not add due to rounding. (1) Cash flow components include Net Realizations and Fee Related Earnings. Blackstone 8

Compounding Effect: Value creation and asset diversity drives Net Performance Fee growth, even throughout robust realization cycles Net Accrued and Realized Performance Fees (Dollars in millions) $1.99/unit $3.00/unit $1,588 $3.11/unit $1,023 71% Net Accrued Performance Fees public or liquidating at 1Q 14 $1.33/unit (1) $1,793 $1,061 $0.37/unit $407 $445 $228 $629 $0.40/unit $1,812 $1,418 $1.60/unit $2,523 $1,487 $2.21/unit 130% Realized Performance Fee CAGR since 2011 2011 2012 2013 1Q 14 Realized (2) (3) (3) Public Private 100% BX drawdown funds inception to date in Net Carry position (1) Per unit calculations are based on quarter-end Distributable Earnings Units Outstanding. (2) Represents Total Segments Realized Carried Interest and Realized Incentive Fee for the respective periods with 1Q 14 representing 1Q 14 LTM. (3) In total, represents Blackstone s Net Accrued Performance Fee Receivable. 1Q 14 Public includes liquidating portfolio investments. Blackstone 9

Uncorrelated: Annual seasonality and underlying investment performance drives financial performance rather than trends of the S&P 500 (Dollars in millions) 72 Realization Events 103 Realization Events 150 Realization Events 188 Realization Events 11% 10% 11% 12% 10% 10% 5% 5% 6% 5% $485 $143 2% 1% (0)% (3)% (1)% (12)% (14)% 2010 2011 2012 2013 1Q 14 S&P % Change Distributable Earnings Consensus Estimate Fourth Quarter Note: Data presented annually by quarter. Consensus Estimates are sourced from S&P Capital IQ and/or research reports. Blackstone 10

Core Strategy: a business model optimized to outperform for fund and equity investors across all cycles Organic Growth Pure Asset Manager Value Creation Consistent Earnings Advantages of Scale Superior growth comes from fund performance, breadth of offerings and culture of innovation Managing third party assets provides scale, avoids LP conflicts and drives higher Return on Equity Core expertise of actively creating value at the portfolio level is a sustainable advantage across cycles Underlying portfolio assets provide diversified and uncorrelated earnings stream Each business benefits from the long track record and global scale needed to sustain growth for the long-term Blackstone 11

Unique: Blackstone is one of the world s fastest growing and most profitable asset managers Publicly Traded Asset Managers Profitability Yield Scale Growth 26 19 6 3 1 EBITDA (1) Margin > 30% Dividend Yield > 3% Net Income > $1B 3 Yr AUM CAGR > 20% Blackstone: 54.6% 4.2% $3.5B 27.5% (2) Source: Company filings, FactSet, SNL. Data as of December 31, 2013. Note: Publicly Traded Asset Managers include BEN, BLK, AMG, TROW, LM, EV, JNS, FII, CLMS, WDR, GBL, CNS, AB, IVZ, PZN, WETF, VRTS, MN, APAM, BX, KKR, APO, FIG, OZM, CG and OAK. (1) EBITDA adjusted for unusual and non-recurring items; NFRE EBITDA used for alternative asset managers (KKR, APO, CG, OAK, OZM and FIG). Blackstone EBITDA margin equals Adjusted EBITDA divided by Total Management and Advisory Fees, Net, Interest Income and Dividend Revenue, Other, Realized Carried Interest, Realized Incentive Fees and Realized Investment Income. (2) Represents Economic Net Income. Blackstone 12

Appendix

GAAP Statement of Operations (Dollars in Thousands) 2008 2009 2010 2011 2012 2013 1Q'12 1Q'13 1Q'14 1Q'13 LTM 1Q'14 LTM Revenues Management and Advisory Fees, Net $ 1,476,357 $ 1,482,226 $ 1,584,748 $ 1,811,750 $ 2,030,693 $ 2,193,985 $ 471,676 $ 482,133 $ 573,160 $ 2,041,150 $ 2,285,012 Performance Fees Realized Carried Interest 244,963 138,907 327,422 943,958 13,560 294,170 333,623 608,032 983,411 Realized Incentive Fees 121,758 90,099 301,801 464,838 5,279 23,741 43,794 320,263 484,891 Realized 38,941 70,492 Unrealized Carried Interest 457,002 971,518 994,190 2,158,010 298,796 177,347 330,394 872,741 2,311,057 Unrealized Incentive Fees 114,111 (17,864) (30,361) (22,749) 67,135 105,798 64,233 8,302 (64,314) Unrealized (1,286,261) 150,598 Total Performance Fees (1,247,320) 221,090 937,834 1,182,660 1,593,052 3,544,057 384,770 601,056 772,044 1,809,338 3,715,045 Investment Income (Loss) Realized (16,425) 44,320 29,157 87,542 93,963 188,644 16,335 42,353 153,026 119,981 299,317 Unrealized (606,452) (3,716) 532,004 125,781 256,231 611,664 72,826 106,230 13,500 289,635 518,934 Total Investment Income (Loss) (622,877) 40,604 561,161 213,323 350,194 800,308 89,161 148,583 166,526 409,616 818,251 Interest and Dividend Revenue 30,879 22,680 36,218 37,427 40,354 64,511 7,636 12,557 14,069 45,275 66,023 Other 13,600 7,099 (619) 7,416 5,148 10,307 (1,207) 2,144 869 8,499 9,032 Total Revenues (349,361) 1,773,699 3,119,342 3,252,576 4,019,441 6,613,168 952,036 1,246,473 1,526,668 4,313,878 6,893,363 Expenses Compensation and Benefits Compensation 4,062,238 3,778,686 3,253,226 2,421,712 2,091,698 1,844,485 495,255 451,430 485,351 2,047,873 1,878,406 Performance Fee Compensation Realized Carried Interest 70,716 43,615 96,433 257,201 7,938 89,437 149,398 177,932 317,162 Realized Incentive Fees 57,600 55,912 140,042 200,915 4,252 10,508 23,635 146,298 214,042 Realized 4,997 25,102 Unrealized Carried Interest 165,340 237,945 321,599 966,717 84,543 95,472 40,730 332,528 911,975 Unrealized Incentive Fees 63,307 (20,759) (44,528) (11,651) 12,779 44,478 23,531 (12,829) (32,598) Unrealized (207,448) (26,182) Total Compensation and Benefits 3,859,787 3,777,606 3,610,189 2,738,425 2,605,244 3,257,667 604,767 691,325 722,645 2,691,802 3,288,987 General, Administrative and Other 440,776 443,573 466,358 566,313 548,738 474,442 142,766 109,306 135,554 515,278 500,690 Interest Expense 23,008 13,384 41,229 57,824 72,870 107,973 14,518 27,062 24,667 85,414 105,578 Fund Expenses 63,031 7,296 26,214 25,507 33,829 26,658 21,742 7,408 4,985 19,495 24,235 Total Expenses 4,386,602 4,241,859 4,143,990 3,388,069 3,260,681 3,866,740 783,793 835,101 887,851 3,311,989 3,919,490 Other Income (Loss) Reversal of Tax Receivable Agreement Liability - - - 197,816-20,469 - - - - 20,469 Net Gains (Loss) from Fund Investment Activities (872,336) 176,694 501,994 14,935 256,145 381,664 288,142 67,210 70,155 35,213 384,609 Income (Loss) Before Provision (Benefit) for Taxes $ (5,608,299) $ (2,291,466) $ (522,654) $ 77,258 $ 1,014,905 $ 3,148,561 $ 456,385 $ 478,582 $ 708,972 $ 1,037,102 $ 3,378,951 Provision (Benefit) for Taxes (14,145) 99,230 84,669 345,711 185,023 255,642 38,753 50,993 54,097 197,263 258,746 Net Income (Loss) $ (5,594,154) $ (2,390,696) $ (607,323) $ (268,453) $ 829,882 $ 2,892,919 $ 417,632 $ 427,589 $ 654,875 $ 839,839 $ 3,120,205 Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities (632,495) 131,097 87,651 (24,869) 103,598 183,315 54,259 62,316 45,792 111,655 166,791 Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities (159,828) (14,328) 343,498 7,953 99,959 198,557 197,643 (9,452) 43,961 (107,136) 251,970 Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings (3,638,799) (1,792,174) (668,444) (83,234) 407,727 1,339,845 107,405 207,090 299,505 507,412 1,432,260 Net Income (Loss) Attributable to The Blackstone Group L.P. $ (1,163,032) $ (715,291) $ (370,028) $ (168,303) $ 218,598 $ 1,171,202 $ 58,325 $ 167,635 $ 265,617 $ 327,908 $ 1,269,184 Blackstone 1

Total Segments (Dollars in Thousands) 2008 2009 2010 2011 2012 2013 1Q'12 1Q'13 1Q'14 1Q'13 LTM 1Q'14 LTM Revenues Management and Advisory Fees, Net Base Management Fees $ 1,041,718 $ 999,829 $ 1,069,471 $ 1,281,185 $ 1,591,403 $ 1,740,807 $ 395,506 $ 408,747 $ 476,878 $ 1,604,644 $ 1,808,938 Advisory Fees 397,519 390,718 426,140 382,240 357,417 410,514 75,846 67,020 69,963 348,591 413,457 Transaction and Other Fees, Net (1) 96,358 115,040 137,748 247,513 227,119 206,977 38,471 37,974 59,910 226,622 228,913 Management Fee Offsets (2) (16,437) (17,161) (2,313) (33,393) (40,953) (72,220) (13,050) (9,662) (16,644) (37,565) (79,202) Total Management and Advisory Fees, Net 1,519,158 1,488,426 1,631,046 1,877,545 2,134,986 2,286,078 496,773 504,079 590,107 2,142,292 2,372,106 Performance Fees Realized Carried Interest 26,953 29,452 244,963 138,907 327,422 943,958 13,560 294,170 333,623 608,032 983,411 Realized Incentive Fees 12,060 44,812 116,700 89,029 301,464 474,333 5,279 24,727 53,837 320,912 503,443 Unrealized Carried Interest (1,274,327) 100,304 457,002 971,518 994,190 2,158,010 298,796 177,347 330,288 872,741 2,310,951 Unrealized Incentive Fees (11,935) 65,563 107,624 (24,928) (29,311) (19,928) 68,121 107,755 61,266 10,323 (66,417) Total Performance Fees (1,247,249) 240,131 926,289 1,174,526 1,593,765 3,556,373 385,756 603,999 779,014 1,812,008 3,731,388 Investment Income (Loss) Realized (64,677) 29,544 46,915 102,575 95,398 170,471 23,492 38,110 111,917 110,016 244,278 Unrealized (691,934) 3,880 501,634 82,689 190,846 517,334 59,914 96,661 4,550 227,593 425,223 Total Investment Income (Loss) (756,611) 33,424 548,549 185,264 286,244 687,805 83,406 134,771 116,467 337,609 669,501 Interest Income and Dividend Revenue 29,014 22,492 36,096 38,844 46,630 70,936 9,345 14,661 22,362 51,946 78,637 Other 13,595 7,096 (618) 7,415 5,149 10,308 (1,207) 2,143 869 8,499 9,034 Total Revenues (442,093) 1,791,569 3,141,362 3,283,594 4,066,774 6,611,500 974,073 1,259,653 1,508,819 4,352,354 6,860,666 Expenses Compensation 771,426 769,856 859,114 960,569 1,030,776 1,115,640 254,772 266,977 306,545 1,042,981 1,155,208 Performance Fee Compensation Realized Carried Interest (1,421) 2,844 70,716 43,615 96,433 257,201 7,938 89,437 149,398 177,932 317,162 Realized Incentive Fees 6,418 22,260 57,600 55,912 140,042 200,915 4,252 10,508 23,635 146,298 214,042 Unrealized Carried Interest (204,262) (69,824) 165,340 237,944 321,599 966,717 84,543 95,472 40,690 332,528 911,935 Unrealized Incentive Fees (3,452) 43,641 63,306 (20,759) (44,528) (11,651) 12,779 44,478 23,531 (12,829) (32,598) Total Compensation and Benefits 568,709 768,777 1,216,076 1,277,281 1,544,322 2,528,822 364,284 506,872 543,799 1,686,910 2,565,749 Other Operating Expenses 319,216 299,029 344,516 421,342 481,445 486,639 109,521 114,444 139,774 486,368 511,969 Total Expenses 887,925 1,067,806 1,560,592 1,698,623 2,025,767 3,015,461 473,805 621,316 683,573 2,173,278 3,077,718 Economic Income (Loss) $ (1,330,018) $ 723,763 $ 1,580,770 $ 1,584,971 $ 2,041,007 $ 3,596,039 $ 500,268 $ 638,337 $ 825,246 $ 2,179,076 $ 3,782,948 (1) Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners including, for Private Equity, broken deal expenses. (2) Primarily placement fees. Blackstone 2

First Quarter 2014 Segments Private Real Hedge Fund Financial (Dollars in Thousands) Equity Estate Solutions Credit Avisory Total Revenues Management and Advisory Fees, Net Base Management Fees $ 98,584 $ 159,336 $ 113,384 $ 105,574 $ - $ 476,878 Advisory Fees - - - - 69,963 69,963 Transaction and Other Fees, Net (1) 42,847 13,564 93 3,344 62 59,910 Management Fee Offsets (2) (1,713) (9,224) (1,455) (4,252) - (16,644) Total Management and Advisory Fees, Net 139,718 163,676 112,022 104,666 70,025 590,107 Performance Fees Realized Carried Interest 119,805 194,658-19,160-333,623 Realized Incentive Fees - (26) 39,845 14,018-53,837 Unrealized Carried Interest 167,065 140,237-22,986-330,288 Unrealized Incentive Fees - 2,737 18,085 40,444-61,266 Total Performance Fees 286,870 337,606 57,930 96,608-779,014 Investment Income (Loss) Realized 60,535 31,357 16,820 3,071 134 111,917 Unrealized (9,033) 5,379 4,431 3,079 694 4,550 Total Investment Income 51,502 36,736 21,251 6,150 828 116,467 Interest Income and Dividend Revenue 5,228 6,110 2,661 5,861 2,502 22,362 Other 864 317 122 (259) (175) 869 Total Revenues 484,182 544,445 193,986 213,026 73,180 1,508,819 Expenses Compensation 73,307 80,233 40,571 50,752 61,682 306,545 Performance Fee Compensation Realized Carried Interest 85,771 51,833-11,794-149,398 Realized Incentive Fees - (16) 13,271 10,380-23,635 Unrealized Carried Interest (27,148) 56,985-10,853-40,690 Unrealized Incentive Fees - 1,382 6,761 15,388-23,531 Total Compensation and Benefits 131,930 190,417 60,603 99,167 61,682 543,799 Other Operating Expenses 33,006 33,107 19,480 32,839 21,342 139,774 Total Expenses 164,936 223,524 80,083 132,006 83,024 683,573 Economic Income (Loss) $ 319,246 $ 320,921 $ 113,903 $ 81,020 $ (9,844) $ 825,246 (1) Transaction and Other Fees, Net, are net of amounts, if any, shared with limited partners including broken deal expenses. (2) Primarily placement fees. Blackstone 3

Reconciliation of GAAP to Non-GAAP Measures (Dollars in Thousands) 2008 2009 2010 2011 2012 2013 1Q'12 1Q'13 1Q'14 1Q'13 LTM 1Q'14 LTM Net Income (Loss) Attributable to The Blackstone Group L.P. $ (1,163,032) $ (715,291) $ (370,028) $ (168,303) $ 218,598 $ 1,171,202 $ 58,325 $ 167,635 $ 265,617 $ 327,908 $ 1,269,184 Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings (3,638,799) (1,792,174) (668,444) (83,234) 407,727 1,339,845 107,405 207,090 299,505 507,412 1,432,260 Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities (159,828) (14,328) 343,498 7,953 99,959 198,557 197,643 (9,452) 43,961 (107,136) 251,970 Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities (632,495) 131,097 87,651 (24,869) 103,598 183,315 54,259 62,316 45,792 111,655 166,791 Net Income (Loss) $ (5,594,154) $ (2,390,696) $ (607,323) $ (268,453) $ 829,882 $ 2,892,919 $ 417,632 $ 427,589 $ 654,875 $ 839,839 $ 3,120,205 Provision (Benefit) for Taxes (14,145) 99,230 84,669 345,711 185,023 255,642 38,753 50,993 54,097 197,263 258,746 Income (Loss) Before Provision (Benefit) for Taxes $ (5,608,299) $ (2,291,466) $ (522,654) $ 77,258 $ 1,014,905 $ 3,148,561 $ 456,385 $ 478,582 $ 708,972 $ 1,037,102 $ 3,378,951 IPO and Acquisition-Related Charges (1) 3,331,722 2,973,950 2,369,195 1,269,932 1,079,511 722,707 244,897 186,962 177,024 1,021,576 712,769 Amortization of Intangibles (2) 153,237 158,048 165,378 220,865 150,148 106,643 50,888 25,657 29,003 124,917 109,989 Other Adjustments 999 - - - - - - - - - - (Income) Loss Associated with Non-Controlling Interests in (Income) Loss of Consolidated Entities (3) 792,323 (116,769) (431,149) 16,916 (203,557) (381,872) (251,902) (52,864) (89,753) (4,519) (418,761) Economic Income (Loss) $ (1,330,018) $ 723,763 $ 1,580,770 $ 1,584,971 $ 2,041,007 $ 3,596,039 $ 500,268 $ 638,337 $ 825,246 $ 2,179,076 $ 3,782,948 Taxes (4) (43,457) (51,086) (28,932) (45,763) (45,708) (82,164) (9,051) (10,031) (11,312) (46,688) (83,445) Economic Net Income (Loss) $ (1,373,475) $ 672,677 $ 1,551,838 $ 1,539,208 $ 1,995,299 $ 3,513,875 $ 491,217 $ 628,306 $ 813,934 $ 2,132,388 $ 3,699,503 Taxes (4) 43,457 51,086 28,932 45,763 45,708 82,164 9,051 10,031 11,312 46,688 83,445 Performance Fee Adjustment (5) 1,247,249 (240,131) (926,289) (1,174,526) (1,593,765) (3,556,373) (385,756) (603,999) (779,014) (1,812,008) (3,731,388) Investment (Income) Loss Adjustment (6) 756,611 (33,424) (548,549) (185,264) (286,244) (687,805) (83,406) (134,771) (116,467) (337,609) (669,501) Investment Income - Blackstone's Treasury Cash Management Strategies (7) - 12,367 15,277 4,600 25,769 (19,574) 6,310 (1,729) 7,810 17,730 (10,035) Performance Fee Compensation and Benefits Adjustment (8) (202,717) (1,079) 356,962 316,712 513,546 1,413,182 109,512 239,895 237,254 643,929 1,410,541 Fee Related Earnings $ 471,125 $ 461,496 $ 478,171 $ 546,493 $ 700,313 $ 745,469 $ 146,928 $ 137,733 $ 174,829 $ 691,118 $ 782,565 Realized Performance Fees (9) 34,016 49,160 233,347 128,409 392,411 960,175 6,649 218,952 214,427 604,714 955,650 Realized Investment Income (Loss) (10) (64,677) 29,544 46,915 102,575 95,398 170,471 23,492 38,110 111,917 110,016 244,278 Adjustment Related to Realized Investment Income - Blackstone's Treasury Cash Management Strategies (11) - (10,142) (7,782) (6,057) (21,872) 13,194 (5,897) (3,820) (1,344) (19,795) 15,670 Taxes and Related Payables Including Payable Under Tax Receivable Agreement (12) (43,457) (51,086) (48,867) (74,696) (132,325) (156,734) (9,051) (12,148) (31,054) (135,422) (175,640) Equity Based Compensation (13) 64,288 66,789 68,900 84,626 90,040 130,124 7,846 12,085 16,337 94,279 134,376 Distributable Earnings $ 461,295 $ 545,761 $ 770,684 $ 781,350 $ 1,123,965 $ 1,862,699 $ 169,967 $ 390,912 $ 485,112 $ 1,344,910 $ 1,956,899 Interest Expense 19,992 10,238 36,666 53,201 69,152 103,904 13,554 26,069 30,398 81,667 108,233 Taxes and Related Payables Including Payable Under Tax Receivable Agreement (12) 43,457 51,086 48,867 74,696 132,325 156,734 9,051 12,148 31,054 135,422 175,640 Depreciation and Amortization 19,639 23,750 26,629 32,764 42,235 35,441 10,268 8,643 10,373 40,610 37,171 Adjusted EBITDA $ 544,383 $ 630,835 $ 882,846 $ 942,011 $ 1,367,677 $ 2,158,778 $ 202,840 $ 437,772 $ 556,937 $ 1,602,609 $ 2,277,943 Notes on next page. Blackstone 4

Reconciliation of GAAP to Non-GAAP Measures Notes Note: See Appendix - Definitions. (1) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which include principally equity-based compensation charges associated with Blackstone s initial public offering and long-term retention programs outside of annual deferred compensation and other corporate actions. (2) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which are associated with Blackstone s initial public offering and other corporate actions. (3) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes the amount of (Income) Loss Associated with Non- Controlling Interests of Consolidated Entities and includes the amount of Management Fee Revenues associated with Consolidated CLO Entities. (4) Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes. (5) This adjustment removes from Economic Income the total segment amount of Performance Fees. (6) This adjustment removes from Economic Income the total segment amount of Investment Income (Loss). (7) This adjustment represents the realized and unrealized gain on Blackstone s Treasury Cash Management Strategies which are a component of Investment Income (Loss) but included in Fee Related Earnings. (8) This adjustment removes from expenses the compensation and benefit amounts related to Blackstone s profit sharing plans related to Performance Fees. (9) Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstone s profit sharing plans related thereto. (10) Represents the adjustment for Blackstone s Investment Income (Loss) - Realized. (11) Represents the elimination of Realized Investment Income (Loss) attributable to Blackstone s Treasury Cash Management Strategies which is a component of both Fee Related Earnings and Realized Investment Income (Loss). (12) Taxes and Related Payables Including Payable Under Tax Receivable Agreement represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and the Payable Under Tax Receivable Agreement. (13) Represents equity-based award expense included in Economic Income. Blackstone 5

Earnings Composition Calculation of Net Realizations and Net Unrealized (Dollars in Thousands) 2010 2011 2012 2013 1Q'13 1Q'14 1Q'14 LTM Realized Incentive Fees $ 116,700 $ 89,029 $ 301,464 $ 474,333 $ 24,727 $ 53,837 $ 503,443 Less: Realized Incentive Fee Compensation (57,600) (55,912) (140,042) (200,915) (10,508) (23,635) (214,042) Net Realized Incentive Fees 59,100 33,117 161,422 273,418 14,219 30,202 289,401 Realized Carried Interest 244,963 138,907 327,422 943,958 294,170 333,623 983,411 Less: Realized Carried Interest Compensation (70,716) (43,615) (96,433) (257,201) (89,437) (149,398) (317,162) Net Realized Carried Interest 174,247 95,292 230,989 686,757 204,733 184,225 666,249 Realized Investment Income 46,915 102,575 95,398 170,471 38,110 111,917 244,278 Adjustment Related to Realized Investment Income - Blackstone's Treasury Cash Management Strategies (1) (7,782) (6,057) (21,872) 13,194 (3,820) (1,344) 15,670 Net Realized Investment Income 39,133 96,518 73,526 183,665 34,290 110,573 259,948 Net Realizations $ 272,480 $ 224,927 $ 465,937 $ 1,143,840 $ 253,242 $ 325,000 $ 1,215,598 Unrealized Incentive Fees $ 107,624 $ (24,928) $ (29,311) $ (19,928) $ 107,755 $ 61,266 $ (66,417) Less: Unrealized Incentive Fee Compensation (63,306) 20,759 44,528 11,651 (44,478) (23,531) 32,598 Net Unrealized Incentive Fees 44,318 (4,169) 15,217 (8,277) 63,277 37,735 (33,819) Unrealized Carried Interest 457,002 971,518 994,190 2,158,010 177,347 330,288 2,310,951 Less: Unrealized Carried Interest Compensation (165,340) (237,944) (321,599) (966,717) (95,472) (40,690) (911,935) Net Unrealized Carried Interest 291,662 733,574 672,591 1,191,293 81,875 289,598 1,399,016 Unrealized Investment Income 501,634 82,689 190,846 517,334 96,661 4,550 425,223 Less: Investment Income - Blackstone's Treasury Cash Management Strategies (1) (15,277) (4,600) (25,769) 19,574 1,729 (7,810) 10,035 Less: Adjustment Related to Realized Investment Income - Blackstone's Treasury Cash Management Strategies (1) 7,782 6,057 21,872 (13,194) 3,820 1,344 (15,670) Net Unrealized Investment Income (Loss) 494,139 84,146 186,949 523,714 102,210 (1,916) 419,588 Net Unrealized $ 830,119 $ 813,551 $ 874,757 $ 1,706,730 $ 247,362 $ 325,417 $ 1,784,785 Unless otherwise noted, all amounts are the respective captions from Appendix Total Segments. (1) See Appendix Reconciliation of GAAP to Non-GAAP Measures and the related notes for these adjustments. Blackstone 6

Definitions Blackstone discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America ( non-gaap ) in this presentation: Blackstone uses Economic Income, or EI, as a key measure of value creation, a benchmark of its performance and in making resource deployment and compensation decisions across its five segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from Blackstone s initial public offering ( IPO ) and long-term retention programs outside of annual deferred compensation and other corporate actions, including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages. Economic Net Income, or ENI, represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision for Taxes. Blackstone uses Fee Related Earnings, or FRE, as a key measure to highlight earnings from operations excluding: (a) the income related to performance fees and related carry plan costs, (b) income earned from Blackstone s investments in the Blackstone Funds, and (c) realized and unrealized gains (losses) from other investments except for such gains (losses) from Blackstone s Treasury cash management strategies. Blackstone uses FRE as a measure to assess whether recurring revenue from its businesses is sufficient to adequately cover all of its operating expenses and generate profits. FRE equals contractual fee revenues, investment income from Blackstone s Treasury cash management strategies and interest income, less (a) compensation expenses (which includes amortization of non-ipo and non-acquisition-related equity-based awards, but excludes amortization of IPO and acquisition-related equity-based awards, carried interest and incentive fee compensation), and (b) other operating expenses. Distributable Earnings, or DE, which is derived from Blackstone s segment reported results, is a supplemental measure to assess performance and amounts available for distributions to Blackstone unitholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings partnerships. DE is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a component of ENI, is the sum across all segments of: (a) Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c) Other Revenue, (d) Realized Performance Fees, and (e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized Performance Fee Compensation, (c) Other Operating Expenses, and (d) Taxes and Related Payables Including the Payable Under Tax Receivable Agreement. DE is reconciled to Blackstone s Consolidated Statement of Operations. Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or Adjusted EBITDA, as a measure of segment performance and an indicator of its ability to cover recurring operating expenses. Adjusted EBITDA equals DE before segment interest expense, segment depreciation and amortization, and the taxes and related payables including the Payable Under Tax Receivable Agreement. Blackstone 7