Blackstone Inc is planning to sell more than $2 billion of stakes it holds in private investment funds, according to reports from June 8 and other sources [1, 2]. The sale would be structured through a collateralised fund obligation, packaging stakes in leveraged buyout funds into bonds that could be sold to investors [1].
The transaction aims to generate cash for investors in a fund run by Blackstone Strategic Partners, a unit that invests in other private equity funds [1]. Blackstone may still choose not to proceed with this securitisation method and instead seek a direct secondary sale of the stakes, though that is less certain [1].
Private equity firms have faced difficulties exiting investments made between 2020 and 2022. At that time, near zero interest rates made it harder to sell holdings, leading to a backlog of unsold assets [1]. The private equity industry currently holds about $4 trillion in unsold assets overall [1].
This planned sale follows reports from early June that first revealed Blackstone's intention to offload these stakes [1, 2]. The company's actions reflect challenges in the broader private equity market but remains focused on providing liquidity to its investors.
No further dates or deadlines associated with the sale have been disclosed.
