This article first appeared on GuruFocus .
Blackstone ( BX , Financials ) is reportedly exploring the sale of more than $2 billion of stakes in private investment funds, a move that would test demand for older private equity assets.
The firm is said to be marketing a collateralized fund obligation that would bundle stakes in leveraged buyout funds into bonds for investors and insurers.
For Blackstone, the transaction could help generate cash for investors in one of its Strategic Partners funds, which invests in other private equity managers' funds.
The deal is still in an early stage, and Blackstone may choose a different route, including a secondary sale of the fund stakes.
The key question is demand. Investors have become more selective toward aging private equity funds, especially as higher rates have made exits harder.
For investors, the report highlights how major asset managers are looking for creative ways to unlock liquidity in private markets.
