BXBlackstone Inc.

In recent years, the U.S. government has taken substantial actions with respect to international trade policy, including seeking to renegotiate certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries, and has made proposals and taken actions related thereto. For example, the countries. The U.S. government has also imposed, and may in the future further increase, impose further, tariffs on certain foreign goods, including from China, such as steel and aluminum. aluminum, from various countries, including China, Canada and Mexico. Some foreign governments, including China, Canada, and Mexico, have threatened or instituted retaliatory tariffs on certain U.S. goods. Most recently, In February 2026, the current U.S. Supreme Court ruled that many of the tariffs recently imposed by the U.S. government exceeded its authority, thereby invalidating many, but not all, of such tariffs. Subsequent to the U.S. Supreme Court’s ruling, the U.S. Presidential administration has imposed or sought to impose significant increases to tariffs on goods imported into the U.S., including from China, Canada and Mexico. While the U.S. has reached an agreement with each of Canada and Mexico to delay the imposition of such tariffs until early March 2025, raised potential alternative means through which the administration has indicated intent to reinstate them. Tariffs could impose tariffs and subsequently imposed a global tariff under a different law. The outlook on goods imported from China took effect in February 2025, further trade policy actions, including trade agreements and the administration has stated plans to increase such potential retaliatory tariffs further. Tariffs is unclear. Increased tariffs on goods imported from China, Canada, Mexico and to the extent reinstated, from Canada and Mexico other countries could further increase increase, costs, decrease margins, margins and reduce the competitiveness of products and services offered by current and future our portfolio companies. This has and could materially further adversely affect impact the revenues and profitability of select companies that have substantial sales of physical goods in the U.S. or whose businesses rely on goods imported from countries that are subject to significant tariffs. Further governmental actions related to the imposition of tariffs or other trade barriers or changes to international trade agreements or policies in respect of other jurisdictions could also have a similar adverse impact.

Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures notes issued by consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any non-financial assets held temporarily, less (b) the sum of the fair value of any beneficial interests retained by Blackstone (other than those that represent compensation for services) and Blackstone’s carrying value of any beneficial interests that represent compensation for services. As a result of this measurement alternative, there is no attribution of amounts to Non-Controlling Interests for consolidated CLO vehicles. Assets of the consolidated CLOs are presented within Investments within the Consolidated Statements of Financial Condition and notes payable within Loans Payable for the amounts due to unaffiliated third parties. Changes in the fair value of consolidated CLO assets and liabilities and related interest, dividend and other income are presented within Net Gains (Losses) from Fund Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses.

claims, and barred all claims against the Blackstone Defendants in Taylor I and Taylor II without any admission of wrongdoing. The settlement included an $82.5 million cash settlement divided among several defendants, of which our portion is would have been expected to be covered by insurance. On In January 8, 2025, the settling parties moved for court approval of the settlement. Taylor II plaintiffs objected and requested, in part, objected. In May 2025, the Court declined to enter an approval order, holding that the court refer Court’s approval is unnecessary and stating that the parties may settle as they see fit. Because an approval order was a condition to the settlement, the settlement agreement was terminated. While the parties are continuing their matter to mediation. On February 14, 2025, the court ordered the Taylor II parties to conduct discussions, they have not reached a mediation in new settlement.

The While the U.S. economy exhibited steady growth in 2024, underpinned by a healthy labor market and consumer spending. The through most of 2025, the Bureau of Economic Analysis’ advance estimate of U.S. real GDP for 2024 indicated annualized growth was 1.4% in the fourth quarter. This was well below estimates, and the Bureau estimated, among other factors, that the U.S. government shutdown subtracted about 1.0% from such expected GDP growth. The labor market remained largely in balance, with an unemployment rate of 2.8% year-over-year, in line with 2.9% growth recorded in 2023. 4.4% at year end, up moderately from 4.1% at year-end 2024. Inflation decreased moderately over the course of 2024, 2025, with headline CPI decreasing from 3.1% year-over-year growth of 2.7% in December 2025 compared to 3.0% in January 2024 to 2.9% in December 2024, and Core CPI decreasing from 3.9% year-over-year growth in January 2024 to 3.2% year-over-year in December 2024. 2025. The Federal Reserve decreased the federal funds target range three times in 2024 2025 to 4.25%-4.50% 3.50-3.75%