Blackstone is seeking to raise at least $5.6bn for its latest fund dedicated to acquiring minority stakes in private equity firms, according to a report by Bloomberg citing unnamed sources familiar with the matter.
The new vehicle, part of Blackstone’s General Partner (GP) Stakes platform, is expected to match the size of its 2021 predecessor fund, which closed at $5.6bn. The move comes amid a continued slowdown in private equity dealmaking and fundraising, prompting many firms to sell passive equity stakes as a way to unlock capital, scale operations, and diversify revenues without relinquishing control.
While Blackstone declined to comment, the firm is understood to be actively marketing the strategy to institutional investors, positioning it as a stable, cash-generating investment with exposure to the broader private markets industry.
GP stakes investing has gained traction in recent years as a structural solution for private equity firms navigating a more challenging capital environment. Minority stake sales offer founders and partners liquidity, fund growth initiatives, or succession plans—while buyers like Blackstone gain recurring income from management fees and carried interest.
The firm’s GP stakes effort, led by senior executive Josh Blaine, now sits under Blackstone’s secondaries platform following an internal reorganisation last year. The group targets GPs managing $5bn or more in assets and has acquired positions in firms such as American Industrial Partners, GTCR, Leonard Green & Partners, Sentinel Capital Partners, and Nautic Partners.
Blackstone managed $1.2tn in assets as of 31 March, with its GP stakes initiative forming a core part of its broader alternatives strategy.
Competition in the GP stakes market has intensified, with players like Blue Owl Capital and Goldman Sachs’ Petershill Partners targeting a similar segment of the market. Blue Owl, one of the sector’s earliest movers, has backed firms including Vista Equity Partners and Bridgepoint, and recently partnered with Abu Dhabi’s Lunate to provide flexible capital to mid-sized GPs.
The growing appeal of GP stakes funds is reflected in limited partner interest. A recent McKinsey & Co survey found that 43% of private equity LPs now allocate capital to GP stakes strategies, attracted by the potential for resilient, income-generating returns, even in periods of macroeconomic turbulence.
