Updated
Updated · Bloomberg · Jun 8
Blackstone Markets $2 Billion Fund Stakes as Bonds in One of Largest CFO Deals
Updated
Updated · Bloomberg · Jun 8

Blackstone Markets $2 Billion Fund Stakes as Bonds in One of Largest CFO Deals

3 articles · Updated · Bloomberg · Jun 8

Summary

  • More than $2 billion of Blackstone private-fund stakes are being marketed to investors through a collateralized fund obligation, according to the Financial Times.
  • The bond package would bundle exposure to leveraged buyout funds, turning Blackstone's holdings in private investment funds into tradable debt securities.
  • The transaction would rank among the largest collateralized fund obligation deals to reach the market and would exceed a similar sale launched last year by Carlyle's AlpInvest unit.

Insights

Is Blackstone's $2B bond sale a sign of market innovation or a symptom of a hidden liquidity crisis?
With a $3.7 trillion exit backlog, are complex CFO bonds the new normal for private equity returns?
As regulators open doors, will your 401(k) soon be exposed to these complex private equity bonds?