Blackstone is exploring the sale of more than $2 billion of stakes in private investment funds through its Strategic Partners unit, according to a Financial Times report. The proposed transaction would rank among the largest deals of its kind and is intended to provide liquidity to investors in one of Blackstone’s secondary investment vehicles.
The New York-based alternative asset manager is marketing a collateralized fund obligation, a structure that packages stakes in leveraged buyout funds and issues bonds backed by those assets. The securities would be sold primarily to investors and insurance companies. However, Blackstone has not made a final decision and could instead pursue a traditional secondary sale of the fund interests.
The potential transaction comes as private equity firms continue to contend with a prolonged slowdown in exits and distributions. Higher interest rates, lower valuations and geopolitical uncertainty have contributed to approximately $4 trillion of unsold assets across the private equity industry, increasing demand for alternative liquidity solutions.
Collateralized fund obligations have gained popularity among secondary investors seeking to monetize fund stakes. Issuance in the sector reached a record $25.9 billion in 2025, with firms including Carlyle and Franklin Templeton also utilizing the market. Blackstone’s proposed transaction would rank alongside some of the largest structured deals completed by firms such as Coller Capital and Carlyle.
Blackstone manages more than $1.3 trillion in assets and had approximately $937.6 billion in fee-earning assets under management as of March 31, 2026.
