Blackstone Strategic Partners reportedly expanded its secondaries operations by purchasing part of a $1.3 billion private equity co-investment portfolio at roughly 20% below net asset value. People familiar with the transaction told PitchBook that the original portfolio contained 22 positions linked to firms including Carlyle Group, CVC, KKR, Blackstone and Insight Partners. The seller kept the positions outside the purchase. The seller's identity has not been disclosed.
Blackstone considered assembling a group of buyers with limited partners but completed the purchase without those partners. KKR-linked investments represented the largest portion of the original portfolio, at about 18.5% of net asset value. The portfolio contained co-investments alongside KKR in Environmental Resources Management, Groundworks and Optiv. The portfolio also held Blackstone's investment in Advarra.
Private equity secondaries activity is reaching record levels as buyers seek discounted investments and sellers seek liquidity. Evercore estimated secondary transaction volume at $121 billion for the first half of 2026. Evercore estimated that GP-led transactions contributed more than half of that volume. Evercore put single-asset continuation vehicles at roughly $34 billion, representing 53% of GP-led activity.
Blackstone President Jonathan Gray said earlier this year at a conference that secondaries observers expect annual deal value to surpass $250 billion. Gray said that forecast would represent more than twice the total recorded in 2023. S&P Global Market Intelligence recently reported that private equity secondaries growth is expected to persist beyond the investor liquidity squeeze. The market could continue expanding while investors remain under pressure to obtain cash from illiquid investments.
Discounted purchase prices also help explain the market's growth, although transferring co-investments can create additional difficulties. Co-investments, unlike traditional fund stakes, can carry side agreements governing investors' economic rights, complicating transfers. PitchBook reported that Blackstone is raising the company's 10th flagship secondaries fund, with commitments totaling $12.3 billion so far.
Secondary transactions let investors dispose of existing private-market positions before the underlying investments are fully realized. Buyers obtain exposure to established portfolios, often below reported net asset values. Sellers obtain liquidity without waiting for investment exits.
Blackstone Acquires Discounted Stakes in $1.3B Private Equity Portfolio
BenzingaShare
Summary
Blackstone Strategic Partners acquired discounted stakes in a $1.3 billion private equity co-investment portfolio, part of a broader portfolio management strategy. The deal valued the 22 positions—linked to firms like Carlyle Group, KKR, and Insight Partners—at roughly 20% below net asset value. The seller retained the remaining assets, though their identity remains undisclosed. The move reflects a focus on portfolio diversification through secondary market opportunities.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.