Blackstone Private Equity Strategies Fund LP

11/12/2026 | Press release | Distributed by Public on 11/12/2026 07:19

Quarterly Report for Quarter Ending SEPTEMBER 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes of the Feeder, the unaudited condensed financial statements and the related notes of BXPE U.S. and the unaudited condensed consolidated financial statements and the related notes of the Aggregator., all included within this Quarterly Report on Form 10-Q.
The investment activities of BXPE are carried out through the Aggregator, a non-consolidated affiliate of BXPE U.S. As such, in this discussion and analysis, we believe it is important to present information for the Feeder, BXPE U.S. and the Aggregator. The unaudited financial statements of each entity are presented in Part I. Item 1. "Financial Statements" of this document. The Feeder, BXPE U.S., the Aggregator, and any Parallel Funds collectively form BXPE. BXPE and BXPE Lux collectively form the BXPE Fund Program.
Overview
On January 2, 2024, Blackstone launched the BXPE Fund Program, Blackstone's perpetual private equity solution for eligible investors, to provide investors greater access to Blackstone's private equity platform. Our investment objectives are to deliver medium- to long-term capital appreciation and, to a lesser extent, generate modest current income. We seek to meet our investment objectives by investing primarily in privately negotiated investments ("Private Equity Investments") to deliver an attractive portfolio of alternative investments diversified across strategies, sectors and geographies.
BXPE is structured as a perpetual-life strategy, with monthly, fully funded subscriptions and periodic redemptions, which we believe enables investors to better manage exposure to the private equity asset class and achieve the potential benefits of compounding returns. Investors in BXPE gain direct exposure to the largest global private equity platform. BXPE is designed to invest across all of Blackstone private equity's major strategies: Corporate Private Equity, Secondaries, Hybrid Capital, Growth and Life Sciences. As of September 30, 2026, we have constructed a portfolio that includes strategic, sector and geographic diversification, focusing on businesses that align with our thematic approach to investing.
BXPE's differentiated access to the world's largest global private equity platform uniquely positions BXPE among competitors, allowing for a broader universe of investment and deployment opportunities. Identifying, closing and realizing attractive Private Equity Investments that fall within BXPE's investment mandate is highly competitive and involves a high degree of uncertainty. We believe the depth and breadth of our investment strategy and Blackstone's private equity platform, including the deep reservoir of proprietary data, represents a significant advantage as we compete for quality investment opportunities and help our portfolio companies compete in their respective markets.
We focus on transactions where Blackstone's scale, brand and/or operating intervention capabilities can create competitive advantages for the BXPE Fund Program. In the ordinary course, we will generally seek to invest at least 80% of our NAV in Private Equity Investments and up to 20% of our NAV in liquid debt and other securities, including but not limited to loans, debt securities, certain public equities, interests in collateralized debt obligation and loan obligation vehicles, derivatives, money market instruments, cash and cash equivalents ("Debt and Other Securities"). Our investments may vary materially from these indicative allocation ranges, including due to factors such as a large inflow of capital over a short period of time, the Sponsor's assessment of the relative attractiveness of opportunities, or an increase in anticipated cash requirements or redemption requests and subject to any limitations or requirements relating to applicable law.
Recent Developments
As of September 30, 2026, the BXPE Fund Program's portfolio consists of 160+ Private Equity Investments, including both closed investments and future signed commitments, with an aggregate value of $30.3 billion.
BXPE's portfolio companies delivered solid revenue growth and healthy margins, with particular strength in Corporate Private Equity investments. Though these gains were partially offset by the performance of certain publicly traded holdings amid equity market volatility. Rising interest rates and ongoing geopolitical conflicts contributed to this volatility during the quarter, and a higher cost of capital has weighed on investor sentiment and transaction activity across the private equity industry. Despite these conditions, BXPE has continued to deploy capital and generate realizations, and we expect this activity to continue over time, particularly if geopolitical conditions improve. Elevated interest rates have also increased focus on the financing needs and valuations of companies involved in the artificial intelligence build-out. This heightened scrutiny notwithstanding, demand for computing capacity continues to outpace available supply. As a result, we believe a
number of BXPE's portfolio companies across the artificial intelligence value chain are well-positioned to benefit going forward.
Performance Summary
Since inception in January 2024, we have delivered positive performance across all classes as follows:
September 30, 2026
Unit Class Year To Date Total Return Inception To Date Total Return (a)
Blackstone Private Equity Strategies Fund L.P.
Class I
Series I 16.8% 18.6%
Series II (b) (b) (b)
Series III (c) 4.9% (c)
Class S 16.1% 17.6%
Class D 16.3% 18.2%
Class N 16.4% 20.2%
Blackstone Private Equity Strategies Fund (TE) L.P.
Class I
Series I 16.7% 18.1%
Series II (b) (b) (b)
Series III (b) (b) (b)
Class S 16.0% 17.1%
Class D 16.5% 20.5%
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(a)Inception to date is an annualized return from when each class, or series of a class, of Unit was first sold. BXPE U.S.'s Class N and Class I-Series III Units were first sold on July 1, 2025 and June 1, 2026, respectively. The Feeder's Class D Units were first sold on December 1, 2024. All other Units were first sold on January 2, 2024. Returns shown reflect the percent change in the Transactional NAV per Unit from the beginning of the applicable period, plus the amount of any distribution per Unit declared in the period. Returns shown are reflective of each class, or series of a class, of Unit and not of an individual investor. BXPE believes total return is a useful measure of overall investment performance of our Units.
(b)No Class I-Series II Units have been issued by BXPE U.S. or the Feeder since inception. No Class I-Series III Units have been issued by the Feeder since inception.
(c)BXPE U.S.'s Class I-Series III Units were first sold on June 1, 2026. As a result, inception-to-date total return is not presented because the reporting data is less than one year from when BXPE U.S.'s Class I-Series III Units were first sold.
Investment Portfolio
The following table represents BXPE's Top Private Equity Investments (as defined below) as of September 30, 2026, based on fair value:
Investments Description
7Brew Drive-thru beverage business
Adevinta Online classifieds company
AI Fire Provider of fire and life safety services
AIR Control Concepts Commercial Heating, Ventilation and Air Conditioning
("HVAC") representation
AirTrunk Data center developer and operator
Anthropic AI model developer and research company
ATG Live theatre operator
Champions Group Residential HVAC, plumbing, and electrical services platform
CoreWeave AI infrastructure provider
Databricks Enterprise data and AI platform
Enverus Data analytics platform for the energy and power sectors
Higginbotham Insurance brokerage
Hologic Women's health diagnostics and medical technology company
Jersey Mike's Fast-casual submarine sandwich franchisor
L'Occitane Multi-brand beauty and skincare
PennAero Manufacturer of engineered products
Shermco Electrical testing, maintenance and engineering services provider
Smartsheet Cloud-based work management platform
SpaceX Space launch and satellite communications company
Vaxcare Vaccine management and administration platform
VoltaGrid Distributed power generation and energy infrastructure company
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•Investments listed in alphabetical order.
•Beginning June 30, 2026, "Top Private Equity Investments" means (a) each investment that comprises the top 50% (previously, the top 25%) of the Aggregator's Net Asset Value and (b) any individual investment that represents more than 5% of the Aggregator's Net Asset Value.
The charts below present the diversification of BXPE's portfolio companies by strategy, sector and geography based on the fair value of our investments as of September 30, 2026:
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•% of fair value may not add due to rounding.
•% of fair value represents the Aggregator's sum of Investments at Fair Value, Affiliated Investee Funds and Debt and Other Securities, with exclusions specified below.
•"Regional Breakdown" excludes certain Affiliated Investee Funds that hold underlying investments with diverse region classifications but includes underlying investments of such funds in which BXPE also invests directly, without giving effect to any fund-level leverage attributable to such underlying investments. Such underlying investments are classified in the same region as BXPE's direct investment in such investee. Region is generally based on where each investment is headquartered.
•"Sector Breakdown" excludes certain Affiliated Investee Funds that hold underlying investments with diverse sector classifications but includes the underlying investments of such funds in which BXPE also invests directly, without giving effect to any fund-level leverage attributable to such underlying investments. Such underlying investments are classified in the same sector as BXPE's direct investment in such investee. All determinations are made by BXPE in its sole discretion.
Key Components of Our Results of Operations and Financial Metrics
Our key financial measures and the results of operations are discussed below.
The Feeder's Net Change in Unrealized Gain (Loss) on Investment in BXPE U.S.
The Feeder generates income primarily from its investment in BXPE U.S. and has the same investment objectives as BXPE U.S. The Feeder was established for certain investors with particular tax characteristics, such as tax-exempt investors and certain non-U.S. investors, to participate in BXPE U.S. in a more tax-efficient manner. The Feeder had an interest of 31.1% in BXPE U.S. as of September 30, 2026, a nominal increase of less than 1%, remaining relatively consistent to an interest of 31.1% as of September 30, 2025, the nominal increase was primarily driven by relative capital activity between the Feeder and other investors in BXPE U.S.
For the three and nine months ended September 30, 2026, BXPE U.S. generated a Net Increase (Decrease) in Net Assets Resulting from Operations of $0.4 billion and $1.9 billion, respectively, an increase of $0.2 billion and $1.1 billion, compared to $0.2 billion and $0.8 billion for the three and nine months ended September 30, 2025, respectively. This resulted in the Feeder recognizing a Net Change in Unrealized Gain (Loss) on Investment in BXPE U.S. of $111.9 million and $599.0 million for the three and nine months ended September 30, 2026, respectively, an increase of $55.7 million and $358.9 million, compared to $56.2 million and $240.1 million for the three and nine months ended September 30, 2025, respectively. There were no net realized gains or losses from the investment in BXPE U.S. for the three and nine months ended September 30, 2026 and 2025. Key drivers of the results of operations of BXPE U.S. are discussed below.
BXPE U.S.'s Net Change in Unrealized Gain (Loss) on Investment in the Aggregator
BXPE U.S. generates income primarily from its investment in the Aggregator and has the same investment objectives as the Aggregator. BXPE U.S. had an interest of 83.3% in the Aggregator as of September 30, 2026, an increase of 1.9%, compared to an interest of 81.4% as of September 30, 2025, primarily due to relative capital activity between BXPE U.S. and the Parallel Fund.
For the three and nine months ended September 30, 2026, the Aggregator generated a Net Increase (Decrease) in Net Assets Resulting from Operations of $0.4 billion and $2.3 billion, respectively, an increase of $0.2 billion and $1.3 billion, compared to $0.2 billion and $1.0 billion for the three and nine months ended September 30, 2025, respectively. This resulted in BXPE U.S. recognizing a Net Change in Unrealized Gain (Loss) on Investment in the Aggregator of $0.4 billion and $1.9 billion for the three and nine months ended September 30, 2026, respectively, an increase of $0.2 billion and $1.1 billion, compared to $0.2 billion and $0.8 billion for the three and nine months ended September 30, 2025, respectively. There were no net realized gains or losses from the investment in the Aggregator for the three and nine months ended September 30, 2026 and 2025. Key drivers of the results of operations of the Aggregator are discussed below.
Aggregator Income, Expenses and Net Realized and Unrealized Gain (Loss) on Investments, Derivative Instruments and Translation of Assets and Liabilities in Foreign Currencies
The Aggregator generates income, gains and losses primarily from its Private Equity Investments and investments in Debt and Other Securities. Realized gains or losses are measured as the difference between the net proceeds from the sale, repayment, or disposal of an asset and the adjusted cost basis of the asset, without regard to unrealized gains or losses previously recognized. Net change in unrealized gains or losses reflects the change in investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses, when gains or losses are realized. Net realized and unrealized gains and losses can also arise due to the translation of assets and liabilities denominated in foreign currencies.
The Aggregator generates income in the form of dividends and interest on its Private Equity Investments. To a lesser extent, the Aggregator's liquid debt investments generate interest income.
For the three months ended September 30, 2026, the increase in the Aggregator's Net Increase (Decrease) in Net Assets Resulting from Operations of $211.1 million compared to the three months ended September 30, 2025 was attributable to an increase of $229.3 million in Net Realized and Unrealized Gain (Loss) on Investments, Derivative Instruments and Translation of Assets and Liabilities in Foreign Currencies, partially offset by a decrease of $18.3 million in Net Investment Income (Loss).
For the nine months ended September 30, 2026, the increase in the Aggregator's Net Increase (Decrease) in Net Assets Resulting from Operations of $1.3 billion compared to the nine months ended September 30, 2025 was attributable to an increase of $1.7 billion in Net Realized and Unrealized Gain (Loss) on Investments, Derivative Instruments and Translation of Assets and Liabilities in Foreign Currencies, partially offset by a decrease of $0.4 billion in Net Investment Income (Loss).
Net Realized and Unrealized Gain (Loss) on Investments, Derivative Instruments and Translation of Assets and Liabilities in Foreign Currencies
For the three months ended September 30, 2026, the Aggregator had $539.6 million of Net Realized and Unrealized Gain (Loss) on Investments, Derivative Instruments and Translation of Assets and Liabilities in Foreign Currencies, an increase of $229.3 million, compared to $310.3 million for the three months ended September 30, 2025. The primary drivers contributing to the increase for the three months ended September 30, 2026 are:
•$286.9 million of Net Change in Unrealized Gain (Loss) on Investments, compared to $216.2 million for the three months ended September 30, 2025, resulting in a $70.7 million increase that was primarily due to unrealized appreciation in Corporate Private Equity investments.
•$282.0 million of Net Realized Gain on Investments and Derivative Instruments, compared to $28.4 million for the three months ended September 30, 2025, resulting in a $253.6 million increase that was primarily attributable to realized gains in Growth and Corporate Private Equity investments.
•$(15.2) million of Net Change in Unrealized Gain (Loss) on Derivative Instruments, compared to $75.6 million for the three months ended September 30, 2025, resulting in a $90.8 million decrease that was primarily due to the fluctuation of foreign exchange rates.
•$(14.0) million of Net Change in Unrealized Gain (Loss) on Translation of Assets and Liabilities in Foreign Currencies, compared to $(9.9) million for the three months ended September 30, 2025, resulting in a $4.1 million decrease that was primarily due to the fluctuation of foreign exchange rates.
For the nine months ended September 30, 2026, the Aggregator had $2.9 billion of Net Realized and Unrealized Gain (Loss) on Investments, Derivative Instruments and Translation of Assets and Liabilities in Foreign Currencies, an increase of $1.7 billion, compared to $1.2 billion for the nine months ended September 30, 2025. The primary drivers contributing to the increase for the nine months ended September 30, 2026 are:
•$2.6 billion of Net Change in Unrealized Gain (Loss) on Investments, compared to $1.0 billion for the nine months ended September 30, 2025, resulting in a $1.6 billion increase that was primarily due to unrealized appreciation on Growth and Corporate Private Equity investments.
•$408.6 million of Net Realized Gain on Investments and Derivative Instruments, compared to $71.3 million for the nine months ended September 30, 2025, resulting in a $337.3 million increase that was primarily due to realized gains in Corporate Private Equity and Growth investments.
•$5.5 million of Net Change in Unrealized Gain (Loss) on Derivative Instruments, compared to $(40.5) million for the nine months ended September 30, 2025, resulting in a $46.0 million increase that was primarily due to the fluctuation of foreign exchange rates.
•$(86.0) million of Net Change in Unrealized Gain (Loss) on Translation of Assets and Liabilities in Foreign Currencies, compared to $199.7 million for the nine months ended September 30, 2025, resulting in a $285.7 million decrease that was primarily due to the fluctuation of foreign exchange rates.
Net Investment Income (Loss)
For the three months ended September 30, 2026, the Aggregator's Net Investment Income (Loss) was $(99.3) million, a decrease of $18.3 million, compared to $(81.0) million for the three months ended September 30, 2025. The decrease in Net Investment Income (Loss) was attributable to an increase of $63.2 million in Net Expenses, offset by a decrease of $31.9 million in Provision for (Benefit of) Taxes.
For the nine months ended September 30, 2026, the Aggregator's Net Investment Income (Loss) was $(560.7) million, a decrease of $370.7 million, compared to $(190.0) million for the nine months ended September 30, 2025. The decrease
in Net Investment Income (Loss) was attributable to an increase of $309.2 million in Net Expenses and $72.6 million in Provision for (Benefit of) Taxes.
Aggregator Income
For the three months ended September 30, 2026, the Aggregator generated $59.0 million in Total Income, an increase of $13.0 million, compared to $46.0 million for the three months ended September 30, 2025. The increase was primarily driven by an increase of $10.1 million in Interest Income and $3.4 million in Dividend Income.
For the nine months ended September 30, 2026, the Aggregator generated $193.7 million in Total Income, an increase of $11.1 million, compared to $182.6 million for the nine months ended September 30, 2025. The increase was primarily driven by an increase of $56.1 million in Interest Income, offset by a decrease of $45.7 million in Dividend Income.
Aggregator Expenses
Except as specifically provided below, all investment professionals and staff of the Investment Manager, when and to the extent engaged in providing investment management services to us, and the base compensation, bonus and benefits, and the routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Investment Manager. The Aggregator bears other expenses of its operations, including, but not limited to (a) investment management and administration fees paid to the Investment Manager pursuant to BXPE U.S.'s Investment Management Agreement (as defined in Part I. Item 1. "Financial Statements"), (b) Performance Participation Allocation (as defined in Part I. Item 1. "Financial Statements") paid to the General Partner, (c) other expenses incurred, charged or specifically attributed or allocated by the General Partner, the Investment Manager and/or their affiliates in performing administrative and/or accounting services for BXPE or any Portfolio Entity and (d) all other expenses of BXPE's operations, administrations and transactions, excluding expenses specific to BXPE U.S. and the Feeder (described below).
For the three months ended September 30, 2026, the Aggregator incurred $145.5 million in gross Total Expenses, an increase of $63.4 million, compared to $82.1 million for the three months ended September 30, 2025. The increase was primarily composed of increases in Performance Participation Allocation and gross Management Fees. For the three months ended September 30, 2026, the Aggregator had $63.7 million of Performance Participation Allocation, an increase of $24.7 million, compared to $39.0 million for the three months ended September 30, 2025, primarily due to an increase in Net Change in Unrealized Gain (Loss) on Investments. For the three months ended September 30, 2026, the Aggregator had $61.2 million of gross Management Fees, an increase of $29.6 million, compared to $31.6 million for the three months ended September 30, 2025, primarily due to an increase in Transactional NAV.
For the nine months ended September 30, 2026, the Aggregator incurred $589.8 million in gross Total Expenses, an increase of $312.8 million, compared to $277.0 million for the nine months ended September 30, 2025. The increase was primarily composed of increases in Performance Participation Allocation and gross Management Fees. For the nine months ended September 30, 2026, the Aggregator had $354.9 million of Performance Participation Allocation, an increase of $198.0 million, compared to $156.9 million for the nine months ended September 30, 2025, primarily due to an increase in Net Change in Unrealized Gain (Loss) on Investments. For the nine months ended September 30, 2026, the Aggregator had $157.7 million of gross Management Fees, an increase of $77.2 million, compared to $80.5 million for the nine months ended September 30, 2025, primarily due to an increase in Transactional NAV.
Provision (Benefit) for Taxes
For the three months ended September 30, 2026, the Aggregator incurred $13.0 million in Provision for (Benefit of) Taxes, a decrease of $31.9 million, compared to $44.9 million for the three months ended September 30, 2025. The decrease reflects the impact of certain investments no longer subject to tax at the Aggregator due to restructurings.
For the nine months ended September 30, 2026, the Aggregator incurred $168.2 million in Provision for (Benefit of) Taxes, an increase of $72.6 million, compared to $95.6 million for the nine months ended September 30, 2025 due to the increase in Net Change in Unrealized Gain (Loss) on Investments held by the Aggregator.
BXPE U.S. Net Investment Income (Loss)
For the three months ended September 30, 2026, BXPE U.S. incurred $0.8 million in Net Expenses, an increase of $0.1 million, compared to $0.7 million for the three months ended September 30, 2025.
For the nine months ended September 30, 2026, BXPE U.S. incurred $2.8 million in Net Expenses, an increase of $0.7 million, compared to $2.1 million for the nine months ended September 30, 2025.
Feeder Net Investment Income (Loss)
For the three months ended September 30, 2026, the Feeder incurred $0.1 million in Total Expenses, a decrease of $0.3 million, compared to $0.4 million for the three months ended September 30, 2025.
For the three months ended September 30, 2026, the Feeder incurred $3.1 million in Provision for (Benefit of) Taxes, an increase of $2.1 million, compared to $1.0 million for the three months ended September 30, 2025, primarily driven by an increase in unrealized gain on certain investments held by the Aggregator with U.S. federal, state and local income tax exposure and an increase in taxable dividends from Aggregator investments.
For the nine months ended September 30, 2026, the Feeder incurred $0.6 million in Total Expenses, a decrease of $0.3 million, compared to $0.9 million for the nine months ended September 30, 2025.
For the nine months ended September 30, 2026, the Feeder incurred $6.5 million in Provision for (Benefit of) Taxes, a decrease of $0.5 million, compared to $7.0 million for the nine months ended September 30, 2025, primarily driven by a decrease in the net change of unrealized gain on certain investments held by the Aggregator with U.S. federal, state and local income tax exposure and a decrease in taxable dividends from Aggregator investments.
Financial Condition, Liquidity and Capital Resources
We generate cash primarily from BXPE U.S. and the Feeder's net proceeds of their continuous offering of Units, which are then invested into the Aggregator. The Aggregator further generates cash from realizations and other income earned from Private Equity Investments and proceeds from net borrowings on its credit facilities. The primary uses of our Cash and Cash Equivalents include purchasing investments in companies via intermediaries, purchasing other equity and debt instruments, funding the costs of our operations, funding redemptions under our unit redemption plan (the "Unit Redemption Plan"), debt service and repayment and other financing costs of our borrowings. While BXPE does not currently intend to declare distributions, it may determine to do so in the future at the discretion of the General Partner, considering factors such as earnings, cash flow, capital needs, taxes and general financial condition and the requirements of applicable law. Accordingly, in the future, we may use Cash and Cash Equivalents to fund cash distributions, if any, to the holders of our Units.
As of September 30, 2026, debt financing available to the Registrants and the Aggregator consisted of a revolving credit facility, an asset-backed revolving credit facility and the Second A&R Line of Credit (as defined in Note 4. "Line of Credit Agreement" in the "Notes to Condensed Financial Statements" of BXPE U.S. in Part I. Item 1. "Financial Statements"). The Registrants and the Aggregator had no debt outstanding as of September 30, 2026 and December 31, 2025. We have and may continue to, from time to time, enter into additional credit facilities, increase the size of our existing credit facilities or issue additional other forms of debt. Any such incurrence or issuance may be from sources within the U.S. or from various foreign geographies or jurisdictions, and may be denominated in currencies other than the U.S. dollar. Additionally, any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. We also receive and deploy proceeds from our continuous private offerings of Units on a monthly basis.
As described below, as of September 30, 2026, the Registrants' and the Aggregator's Cash and Cash Equivalents, taken together with the unused capacity under the Aggregator's credit facilities and the unused capacity under BXPE U.S.'s Second A&R Line of Credit, proceeds from new or amended financing arrangements and the continuous offering of Units is expected to be sufficient for investing activities and to conduct operations in the near term. This determination is based in part on our expectations for the timing of funding investment purchases and the timing and amount of future proceeds from sales of our Units and the use of existing and future financing arrangements.
The Aggregator
As of September 30, 2026, the Aggregator had $837.3 million in Cash and Cash Equivalents and $3.2 billion of unused capacity under the Aggregator's credit facilities, which, together with net proceeds from units, are expected to be sufficient for investing activities and to conduct operations in the near term. Additionally, as of September 30, 2026, the Aggregator held $1.3 billion of liquid debt investments, which could provide additional liquidity if necessary. As of September 30, 2026, the BXPE Fund Program had conditional commitments of $2.0 billion to new investments. Generally,
conditional commitments are subject to certain terms and conditions prior to closing of the relevant transactions. The Aggregator's allocation of the conditional commitments will be determined at closing, which is generally expected to occur within twenty-four months of signing, although there can be no assurance that such transactions will close as expected or at all. As of September 30, 2026, the Aggregator had unfunded commitments of $2.1 billion to existing investments, which are generally due upon demand. These amounts remain unfunded as they relate to reserves for future capital deployments on existing investments. Commitments are expected to be funded by available cash and cash generated from net proceeds from units issued and investment sale realizations. BXPE expects to continue making fund commitments in the future and, at times, reevaluate commitments to existing vehicles.
As of September 30, 2026, the Aggregator had Total Assets of $20.6 billion, an increase of $7.7 billion, compared to $12.9 billion as of December 31, 2025. The increase in Total Assets was principally due to an increase of $6.9 billion in Investments at Fair Value. As of September 30, 2026, the Aggregator had Total Liabilities of $0.9 billion, an increase of $0.3 billion, compared to $0.6 billion as of December 31, 2025. The increase in Total Liabilities was primarily driven by an increase of $158.9 million in Deferred Tax Liabilities, due to the increase in Net Change in Unrealized Gain (Loss) on Investments.
BXPE U.S.
As of September 30, 2026, BXPE U.S. had $1.1 million in Cash and Cash Equivalents and $100.0 million of unused capacity under BXPE U.S.'s Second A&R Line of Credit, which, together with net proceeds from the continuous offering of Units, are expected to be sufficient to conduct operations in the near term. As of September 30, 2026, BXPE U.S. had Total Assets of $16.4 billion, an increase of $6.3 billion, compared to $10.1 billion as of December 31, 2025. The increase in Total Assets was principally due to an increase of $6.2 billion in Investment in the Aggregator at Fair Value. As of September 30, 2026, BXPE U.S. had Total Liabilities of $308.3 million, an increase of $106.9 million, compared to $201.4 million as of December 31, 2025. The increase in Total Liabilities was principally driven by an increase of $79.4 million in Servicing Fees Payable, which was primarily driven by continued fundraising and an increase in Transactional NAV.
The Feeder
As of September 30, 2026, the Feeder had $0.4 million in Cash and Cash Equivalents, which, together with net proceeds from the continuous offering of Units, are expected to be sufficient to conduct operations in the near term. As of September 30, 2026, the Feeder had Total Assets of $5.0 billion, an increase of $1.8 billion, compared to $3.2 billion as of December 31, 2025. The increase in Total Assets was principally due to an increase of $1.8 billion in Investment in BXPE U.S. at Fair Value. As of September 30, 2026, the Feeder had Total Liabilities of $160.9 million, an increase of $51.9 million, compared to $109.0 million as of December 31, 2025. The increase in Total Liabilities was principally driven by an increase of $38.5 million in Servicing Fees Payable which was primarily driven by continued fundraising and an increase in Transactional NAV.
Transactional Net Asset Value
The Registrants calculate their Transactional NAV per Unit in accordance with valuation policies and procedures that have been approved by the BXPE U.S. Board of Directors. Transactional NAV is the price at which the Registrants sell and redeem their Units and serves as a basis for certain fees incurred by BXPE. The Sponsor also evaluates changes to the Registrants' Transactional NAV to monitor fund performance. The Registrants' Transactional NAV is based on the month-end values of their respective investments and other assets and the deduction of any liabilities, including certain fees and expenses, in all cases as determined in accordance with the valuation policies and procedures that have been approved by the BXPE U.S. Board of Directors. Organizational and offering expenses advanced on BXPE's behalf by the Investment Manager are recognized as a reduction to the Registrants' Transactional NAV ratably over 60 months beginning on January 1, 2025, and unitholder servicing fees, as applicable, are recognized as a reduction to the Registrants' Transactional NAV on a monthly basis as such fees are accrued. Certain contingent tax liabilities may not be recognized as a reduction to the Registrants' Transactional NAV if the General Partner reasonably expects such liabilities will not be recognized upon divestment of the underlying investment. The Registrants believe that the presentation of Transactional NAV is useful to investors because it is the basis for subscriptions, redemptions and certain key fees and expenses incurred by BXPE and it enables investors to evaluate the change in value of their investment.
September 30, 2026
(Dollars in Thousands)
Components of BXPE U.S.'s Transactional Net Asset Value
Investment in the Aggregator (a) $ 16,593,542
Cash and Cash Equivalents 1,119
Other Assets 38,724
Accrued Servicing Fees (b) (4,175)
Other Liabilities (c) (39,014)
BXPE U.S.'s Transactional Net Asset Value $ 16,590,196
September 30, 2026
(Dollars in Thousands)
Components of the Feeder's Transactional Net Asset Value
Investment in BXPE U.S. (d) $ 5,083,093
Cash and Cash Equivalents 351
Other Assets 14,824
Accrued Servicing Fees (b) (2,037)
Tax Liabilities (12,030)
Other Liabilities (c) (15,972)
Feeder's Transactional Net Asset Value $ 5,068,229
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(a)For BXPE U.S.'s Transactional NAV, Investment in the Aggregator includes Performance Participation Allocation accrual, Management Fee accrual, organizational and offering expenses advanced on BXPE's behalf by the Investment Manager that are recognized as a reduction to Transactional NAV ratably over 60 months beginning on January 1, 2025. Certain contingent tax liabilities may not be recognized as a reduction to Transactional NAV if the General Partner reasonably expects such liabilities will not be recognized upon divestment of the underlying investment.
(b)Accrued servicing fees only apply to Class S, Class D and Class N Units, as applicable. The fees are recognized as a reduction of Transactional NAV on a monthly basis.
(c)Includes redemption payables. For purposes of computing Transactional NAV per Unit, such redemption payables are excluded.
(d)For the Feeder's Transactional NAV, Investment in BXPE U.S. includes organizational and offering expenses advanced on the Feeder's behalf by the Investment Manager. Investment in BXPE U.S. is driven by BXPE U.S.'s investment in the Aggregator.
The Transactional NAV per Unit for each class, or series of a class, of the Registrants was as follows:
September 30, 2026
Transactional NAV per Unit Number of Units
Blackstone Private Equity Strategies Fund L.P.
Class I
Series I $ 39.91 257,659,122
Series II (a) $ - -
Series III $ 39.95 6,567,178
Class S $ 38.99 148,501,851
Class D $ 39.54 5,412,991
Class N $ 31.46 1,269,815
419,410,957
Blackstone Private Equity Strategies Fund (TE) L.P.
Class I
Series I $ 39.48 55,374,748
Series II (b) $ - -
Series III (b) $ - -
Class S $ 38.57 74,162,712
Class D $ 35.17 611,087
130,148,547
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(a)The initial Transactional NAV per Unit for BXPE U.S.'s Class I-Series II Units will be equal to the Transactional NAV per Unit for BXPE U.S.'s Class I-Series I Units at the time of initial sale.
(b)The initial Transactional NAV per Unit for the Feeder's Class I-Series II Units and Class I-Series III Units will be equal to the Transactional NAV per Unit for the Feeder's Class I-Series I Units at the time of initial sale.
The following table reconciles GAAP Net Asset Value to BXPE U.S.'s Transactional Net Asset Value.
September 30, 2026
(Dollars in Thousands)
GAAP Net Asset Value $ 16,072,229
Adjustments
Organizational and Offering Expenses (a) 4,166
Servicing Fee (b) 265,064
Tax Liabilities (c) 248,737
Transactional Net Asset Value $ 16,590,196
The following table reconciles GAAP Net Asset Value to the Feeder's Transactional Net Asset Value.
September 30, 2026
(Dollars in Thousands)
GAAP Net Asset Value $ 4,858,592
Adjustments
Organizational and Offering Expenses (a) 1,181
Servicing Fee (b) 130,897
Tax Liabilities (c) 77,559
Transactional Net Asset Value $ 5,068,229
____________________
(a)Represents an adjustment to the Investment in the Aggregator or BXPE U.S., as applicable, to reflect the recognition of organizational and offering expenses ratably over 60 months beginning January 1, 2025.
(b)Represents an adjustment to reflect servicing fees on Class S, Class D and Class N Units, as applicable, as they are accrued on a monthly basis.
(c)Represents an adjustment to remove certain contingent tax liabilities which the General Partner reasonably expects will not be recognized upon divestment of the underlying investment.
The following table presents BXPE's Transactional Net Asset Value, without duplication.
September 30, 2026
(Dollars in Thousands)
Components of BXPE's Transactional Net Asset Value
Feeder's Transactional Net Asset Value $ 5,068,229
BXPE U.S.'s Transactional Net Asset Value 16,590,196
Aggregate Parallel Funds' Transactional Net Asset Value 3,326,829
Feeder's Investment in BXPE U.S. (a) (5,083,093)
BXPE Transactional Net Asset Value $ 19,902,161
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(a)Represents an adjustment to remove the portion of BXPE U.S.'s Transactional NAV attributable to the Feeder's Investment in BXPE U.S.
Critical Accounting Estimates
Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of the financial statements in accordance with GAAP involves significant judgments and assumptions and requires estimates about matters that are inherently uncertain. There have been no material changes to our Critical Accounting Estimates, including significant accounting policies, that we believe are the most affected by our judgments, estimates, and assumptions, which are described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Recent Accounting Developments
Information regarding recent accounting developments and their impact on the Feeder, BXPE U.S. and the Aggregator, if any, can be found in Note 2. "Summary of Significant Accounting Policies" in the "Notes to Condensed Consolidated Financial Statements" of the Feeder, Note 2. "Summary of Significant Accounting Policies" in the "Notes to Condensed Financial Statements" of BXPE U.S. and Note 2. "Summary of Significant Accounting Policies" in the "Notes to Condensed Consolidated Financial Statements" of the Aggregator in Part I. Item 1. "Financial Statements" in this Quarterly Report on Form 10-Q.
Blackstone Private Equity Strategies Fund LP published this content on November 12, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 12, 2026 at 13:20 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]