Blackstone (BX) Pursues $2B+ Fund Stake Securitization Deal

Key Takeaways

Table of Contents

Blackstone is evaluating the sale of more than $2 billion in private fund stakes it currently holds
The transaction would utilize a collateralized fund obligation (CFO) structure, converting LBO fund positions into tradable bonds
Jefferies has been tapped to provide advisory services for this potential transaction
The broader private equity sector is grappling with approximately $4 trillion in assets awaiting liquidation amid difficult exit conditions
Blackstone retains the option to pivot toward a traditional secondary sale if the securitization approach proves unfavorable

Blackstone (BX) is weighing a sale of over $2 billion worth of stakes in private investment funds, according to a Monday report from the Financial Times. Shares climbed 0.7% during premarket hours following the disclosure.

Blackstone Inc., BX

The proposed transaction would be structured as a collateralized fund obligation (CFO) — an innovative financial instrument that bundles leveraged buyout fund interests into bond securities marketed to institutional investors. Insurance companies are anticipated to be prominent purchasers of these securities.

Jefferies has been retained to guide Blackstone through this potential deal, the FT noted. Both organizations declined to provide immediate commentary when contacted.

The fund positions under consideration are housed within a portfolio overseen by Blackstone Strategic Partners, the division specializing in secondary investments across other private equity managers’ funds.

Should the transaction materialize, it would rank among the most substantial CFO deals executed to date and would deliver capital distributions to limited partners in that vehicle.

Private Equity’s $4 Trillion Liquidity Challenge

Context is critical here. The private equity landscape currently holds roughly $4 trillion worth of assets that remain unsold, as fund managers face significant headwinds in executing exits and distributing proceeds to investors.

Portfolio companies acquired during the 2020-2022 timeframe — when borrowing costs were historically low — have proven particularly challenging to divest.

The CFO mechanism represents an innovative solution that private equity firms are deploying to navigate a challenging exit landscape, engineering liquidity pathways that bypass conventional sales or public market listings.

Deal Remains in Flux

Blackstone has not finalized its approach. The asset manager could ultimately decide against pursuing the securitization entirely.

Should the CFO strategy be abandoned, a conventional secondary market transaction involving the fund stakes would likely emerge as the backup plan.

This optionality indicates that Blackstone is currently gauging market appetite — evaluating pricing dynamics and investor demand before committing to a specific execution path.

Financial Snapshot

Blackstone oversees roughly $1.304 trillion in assets under management as of March 2026, cementing its position as the globe’s premier alternative investment firm.

The company’s trailing P/E multiple sits at 29.5x, while the forward-looking P/E stands at 19.36.

Insider transaction data from the past three months reveals net selling totaling $3.8 million, although one insider did acquire 439 stock units during this window.

BX shares hold a GF Score of 71 out of 100, featuring a Growth score of 8/10 alongside a Financial Strength rating of 3/10.

The stock declined 0.13% during Monday’s trading session as of the most recent market update.