Blackstone is looking to raise at least $5.6bn for its latest fund focused on acquiring minority stakes in private equity firms, according to a report by Bloomberg citing sources close to the matter.

The fund would match the size of the firm’s 2021 GP stakes vehicle and comes amid rising demand from GPs seeking non-control capital solutions.

The new vehicle is part of Blackstone’s General Partner (GP) Stakes platform and is being marketed to institutional investors as a source of stable, cash-generating exposure to the private markets industry. As private equity dealmaking and fundraising slow, many firms are exploring minority stake sales to unlock growth capital, facilitate succession, or diversify income streams—without giving up governance control.

Blackstone’s GP stakes strategy now operates under its secondaries platform following an internal reorganisation last year. The effort is led by Josh Blaine and focuses on firms managing $5bn or more in assets. The group has backed a number of well-known GPs, including GTCR, American Industrial Partners, Leonard Green & Partners, Sentinel Capital Partners, and Nautic Partners.

The firm reported $1.2tn in assets under management as of 31 March, with GP stakes forming a strategic component of its broader alternatives offering.

Competition in the GP stakes market is intensifying. Blue Owl Capital—through its Dyal Capital arm—and Goldman Sachs’ Petershill Partners continue to target a similar set of opportunities. Blue Owl, one of the market’s early entrants, has partnered with top-tier firms including Vista Equity and Bridgepoint, and recently teamed up with Abu Dhabi’s Lunate to deploy capital into mid-sized GPs globally.

Investor appetite for GP stakes funds is growing. A recent McKinsey & Co survey found that 43% of LPs are now allocating to the strategy, drawn by the potential for resilient income and long-term capital appreciation—even in periods of macroeconomic volatility.

Source: Bloomberg

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