Key Takeaways
- Blackstone is considering offloading more than $2 billion worth of private investment fund holdings
- The proposed transaction would use a collateralized fund obligation (CFO) structure, converting LBO fund positions into tradable securities
- Jefferies has been tapped to provide advisory services for the potential deal
- Private equity firms currently hold approximately $4 trillion in assets they haven’t been able to liquidate
- The transaction isn’t finalized—Blackstone may opt for a conventional secondary market sale instead
Blackstone (BX) is weighing the potential sale of over $2 billion in holdings from private investment funds, according to a Monday report from the Financial Times. Shares climbed 0.7% during premarket hours following the announcement.
The proposed arrangement would utilize a collateralized fund obligation structure—essentially bundling leveraged buyout fund positions into securities that can be sold to institutional buyers. Insurance companies are anticipated to be major purchasers of these instruments.
According to the FT’s sources, Jefferies is serving as Blackstone‘s advisor on this potential transaction. Both organizations declined to provide immediate commentary when contacted.
The holdings under consideration are housed within a fund operated by Blackstone Strategic Partners, the division focused on acquiring stakes in funds managed by other private equity firms.
Should the deal materialize, it would rank among the most significant CFO transactions to date and would provide capital distributions to investors in the relevant fund.
Private Equity’s $4 Trillion Inventory Problem
Context is critical here. The private equity sector is currently holding roughly $4 trillion worth of assets that remain unsold, as firms face mounting challenges in executing exits and delivering returns to their investors.
Positions acquired during the 2020-2022 period—when borrowing costs were at historic lows—have proven particularly difficult to divest.
The CFO mechanism represents an innovative solution that some firms are employing to navigate the challenging exit landscape, generating liquidity without requiring conventional sales processes or public market listings.
Deal Remains Uncertain
Blackstone has not made a final decision on moving forward. The company retains the option to abandon the securitization approach entirely.
Should it withdraw from the CFO pathway, a traditional secondary transaction involving direct sale of the fund stakes would become the probable alternative strategy.
This optionality indicates that Blackstone is currently gauging market appetite—determining optimal pricing and structure before finalizing its approach.
Financial Snapshot
Blackstone oversees roughly $1.304 trillion in total assets under management as of March 2026, solidifying its position as the globe’s largest alternative investment manager.
The company’s trailing P/E ratio currently sits at 29.5x, while its forward P/E stands at 19.36.
Insider transaction data from the past three months reveals net selling activity totaling $3.8 million, although one insider acquired 439 units during this timeframe.
BX shares maintain a GF Score of 71 out of 100, featuring a Growth rating of 8/10 alongside a Financial Strength score of 3/10.
As of Monday’s most recent update, the stock had declined 0.13% in regular trading.
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