Blackstone's Growth in Secondaries#
Blackstone Inc. has announced that its secondaries business has reached a significant milestone, achieving $100 billion in assets under management in the first quarter of this year. This positions Blackstone as one of the largest players in the market for buying and selling secondhand stakes in investment funds.
Fundraising Success#
During the first quarter, Blackstone's flagship secondaries fund raised an additional $6 billion, bringing the total amount raised for this fund to $11 billion. Jon Gray, Blackstone's President, shared this information during a call with analysts discussing the firm's quarterly results.
Strategic Partners Unit#
The secondaries unit, known as Strategic Partners and led by Verdun Perry, has successfully completed over 2,350 transactions. This unit specializes in purchasing portfolios from clients of private fund managers and also engages in secondary deals initiated by those managers. Notably, last year, it acquired a $5 billion portfolio of private equity holdings from the New York pension system, marking one of the largest transactions of its kind.
Market Trends#
The secondaries market has seen substantial growth, with overall transaction volume increasing by 48% since 2024, reaching $240 billion last year, according to Jefferies Financial Group. However, higher interest rates have slowed down dealmaking and fundraising in private markets, prompting managers to utilize continuation funds. These funds allow them to hold assets longer and provide returns to existing investors. Additionally, clients of private funds have been using the secondaries market to generate liquidity without needing to realize profits from their investments.