Blackstone is raising cash to pick up stakes in real estate from antsy private-market investors.
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Blackstone Strategic Partners, the firm’s secondary business, is expected to raise at least $3B as part of the latest fundraising effort, which will be used to target acquisitions of core real estate interests at discounts to net asset value, anonymous sources told Bloomberg.
The capital will be primarily deployed into funds with data center, rental housing and industrial assets, the sources said, requesting not to be named because the fundraising drive isn’t public.
Blackstone declined to comment to Bloomberg and didn’t respond to Bisnow’s request for comment Wednesday morning.
Strategic Partners' last fundraising round closed in November 2023 with $2.6B in commitments. The latest fundraising effort comes amid growing demand for real estate secondaries as a growing number of limited partners in real estate investments look to cash out early.
Real estate secondaries had a record year in 2025 with $20.3B in total volume, with 72% of market volume coming from general partners, the fund managers that run the investments and typically decide to sell, according to a February report from Ares Management Corp.
There’s a growing demand for cash now among both money managers and limited partners, the investors that provide capital but take a more passive role in operations, that is fueling Blackstone’s latest fundraising effort, executives who spoke with Bloomberg said.
Blackstone itself has in recent months turned to the secondary market to help meet investor redemption requests. The investment giant in September reached out to potential buyers from Blackstone Property Partners to cut a deal that would let some existing investors liquidate. Blackstone Property Partners is a multifund vehicle with $58B in combined assets that invests institutional capital in long-term, income-producing assets, including data centers, industrial assets and office buildings.
The secondaries market has expanded at a rapid clip since 2022, when the Federal Reserve raised interest rates and sapped velocity from capital markets. By 2025, general partner-led secondaries had become the fastest-growing segment of the market.
UK-based Partners Group launched its own fundraising round for a secondaries program this year, announcing $650M in commitments in June for a fund targeting $1.5B in total.
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