Blackstone Group Inc., the world’s biggest alternative assets manager, has hit the final close on its eighth secondaries fund at over $11 billion.
Strategic Partners VIII LP and its related vehicles received commitments from a diversified investor base, Blackstone said in a statement.
The investors included pension funds, sovereign wealth funds, financial institutions, endowments, foundations, family offices and high-net-worth individuals from over 30 countries.
In secondaries transactions, a PE firm acquires an entire portfolio of investments from another investor. In some instances, an investor can also acquire the limited partner’s stake in a PE fund.
The secondaries market has grown since 2009 to become an important part of the PE industry. Secondaries deals have been on the rise across Asia, including in India. Last year, for instance, the Rohatyn Group acquired JP Morgan’s infrastructure portfolio in India. Also last year, private equity firm TPG acquired a minority stake in Hong Kong-based secondaries PE firm NewQuest Capital Partners.
Blackstone said that Strategic Partners is one of the world’s largest secondary platforms, providing investors the opportunity to monetise and manage their illiquid investment holdings.
“Strategic Partners continues to deliver outstanding results for investors in the secondary market,” said Jon Gray, president at Blackstone. “That consistent performance and the strength of our global franchise have led to this terrific capital raise.”
Since 2000, Strategic Partners has raised over $43 billion dedicated to private equity, infrastructure and real estate secondary and fund investing. It has executed over 1,300 transactions that represent interests in approximately 3,600 underlying fund vehicles managed by nearly 1,300 financial sponsors.
Blackstone has been investing in India since 2005 and has invested nearly $10 billion in private equity, real estate and other segments. Its recent deals include the acquisition of a majority stake in packaging company Essel Propack Ltd for as much as Rs 3,211 crore ($460 million) and a controlling stake in Aadhar Housing Finance Ltd in February.
Blackstone had raised $9.4 billion in two Asia-focussed funds last year—$2.3 billion for its first Asian PE fund and $7.1 billion for its second regional real estate fund. Coupled with related commitments from its global buyout fund, Blackstone had reserved a minimum of $3.8 billion of equity to invest in Asia.