TLDR
- Blackstone is seeking to sell over $2 billion of stakes it holds in private investment funds
- The deal involves a collateralized fund obligation (CFO) packaging LBO fund stakes into bonds for investors including insurers
- Jefferies is advising on the transaction
- The private equity industry is sitting on roughly $4 trillion of unsold assets as firms struggle to exit investments
- Blackstone could still back out and pursue a secondary sale instead of a securitization
Blackstone (BX) is exploring the sale of more than $2 billion in stakes it holds in private investment funds, the Financial Times reported Monday. The stock was up 0.7% in premarket trading on the news.
The deal would take the form of a collateralized fund obligation, or CFO — a structure that packages stakes in leveraged buyout funds into bonds for sale to outside investors. Insurers are among the expected buyers.
Jefferies is advising Blackstone on the transaction, per the FT report. Neither firm immediately responded to requests for comment.
The assets being marketed are held within a fund managed by Blackstone Strategic Partners, the unit that invests in other private equity firms’ funds.
If it goes through, the deal would be one of the largest of its kind and would generate cash for investors in that fund.
A Market Sitting on $4 Trillion in Unsold Assets
The backdrop here matters. The broader buyout industry is sitting on roughly $4 trillion of unsold assets, as private equity firms have struggled to exit investments and return cash to limited partners.
Investments made between 2020 and 2022 — when interest rates were near zero — have been especially hard to offload.
This CFO structure is one way firms are trying to work around a sluggish exit environment, creating liquidity without needing a traditional sale or IPO.
What Could Still Change
Blackstone hasn’t committed to anything yet. The firm could decide not to proceed with the securitization at all.
If it steps back from the CFO route, a secondary market sale of the stakes is the likely alternative.
That flexibility suggests Blackstone is still in price discovery mode — testing what the market will bear before locking in a structure.
By the Numbers
Blackstone manages approximately $1.304 trillion in total assets under management as of March 2026, making it the world’s largest alternative asset manager.
Its current P/E ratio stands at 29.5x, with a forward P/E of 19.36.
Insider activity over the last three months shows a net sell of $3.8 million, though one insider did purchase 439 stock units during the same period.
BX stock carries a GF Score of 71 out of 100, with Growth rated 8/10 and Financial Strength at 3/10.
The stock was down 0.13% in Monday trading as of the latest update.
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