Blackstone’s Strategic Partners has acquired a $5bn private equity portfolio from the New York City Retirement Systems, marking one of the largest secondary transactions ever completed by a US public pension, according to Bloomberg.

The transaction includes approximately 450 limited partnership interests across 125 funds managed by 75 general partners. According to a statement from the NYC Comptroller’s Office, the sale forms part of a strategic portfolio realignment rather than a liquidity-driven divestment.

The formal auction, which launched in December 2024, attracted over 80 secondary market participants. Evercore acted as financial advisor, with Morgan Lewis providing legal counsel. While financial terms were not disclosed, secondary transactions of this scale are typically completed at a discount to NAV, reflecting the complexity and illiquidity of mature fund stakes.

The deal comes amid a surge in secondary market activity as institutional investors seek to rebalance private equity allocations amid slower M&A and IPO exits, higher interest rates, and limited distributions. The NYC Retirement Systems’ private equity returns have underperformed national peers, with fiscal year 2024 gains of 4–5%, compared to 10.9% at CalPERS and 8.6% at CalSTRS.

With over $270bn in AUM across five pension funds serving teachers, civil employees, firefighters, police, and education workers, the NYC Retirement Systems’ sale signals a potential re-evaluation of long-term private market exposure.

Blackstone’s Strategic Partners, which has raised over $67bn across asset classes, continues to cement its position as one of the largest players in the secondaries market.

Source: Bloomberg

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