D-1 Senior Managing Partners Blackstone Holdings Blackstone Group L.P. Blackstone Group Mgmt LLC “Passive Income” (Public Partnership) “Active Income” (Operating Service Business) Passive Income (capital gains, dividends) Mgmt. Services for investors capital Blocker Blackstone Holdings Blackstone Group L.P. equity Deal Advisory Fees Inter-company debt Active Income Investment Act of 1940 Taxed Once Mgmt. Fees Carried Interest Distributions equity debt Portfolio Companies that Blackstone buys, restructures, operates & sells