Blackstone on track to pay nearly $1.6 million per capita for 2022

It is not easy to get a job at Blackstone. Last year, the fund received 29,000 applications for 103 entry-level (analyst) positions – an acceptance rate of 0.4%. Unusually high wages are the main attraction.

Blackstone Corporation today announced its second-quarter results. They reveal that compensation spending in the form of salaries, bonuses and realized benefits (a dividend shared among investment staff after successful exits from investments) increased 94% in the first half of 2022, to nearly $3.2 billion across the company.

Blackstone does not disclose the number of people it employs on a quarterly basis, but it is understood to have approximately 4,000 people. Thus, the implication is that the average Blackstone person earned $795,000 over the past six months, and would earn approximately $1.6 million for the entire year. Needless to say, this will skew in favor of people at the key level and above: more entry-level employees are not getting portable interest payments.

Blackstone’s generosity appears to conflict with other aspects of his findings. The company posted a net loss of $255 million in the second quarter due to a decline in the value of its private equity portfolio. However, the Wall Street Journal notes that this portfolio increased by 13.8% last year.

While the realized interest on investments that have already been exited is booming, the unrealized carried interest on investments that have not yet been exited is not. In the first half of 2021, this was $2.2 billion. In the first half of 2022, it was – $914 million. Blackstone investment professionals need to hope that the markets will recover or that the future may be less profitable than the past.

Blackstone is currently expanding its operations in Europe, the Middle East and Africa under the leadership of Farhad Karim. Bloomberg reported in March that the company has employed 200 people since 2020 and is expanding in Paris, Frankfurt and elsewhere in Europe, with a particular focus on life sciences and real estate.

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