Blackstone Inc. is looking to sell more than $2 billion of its stakes in private investment funds by bundling the exposure into bonds for investors, the Financial Times reported.

The alternative asset manager is marketing a collateralised fund obligation that would bundle the stakes in leveraged buyout funds, according to the FT, which cited people with knowledge of the matter. The deal would be one of the largest to ever come to market, ahead of a similar transaction from Carlyle Group Inc.’s AlpInvest unit last year. 

A representative for Blackstone didn’t immediately respond to a request for comment.

Many private equity firms have struggled to offload investments they made during the low-rate environment of 2020 through 2022. That’s made it tough to return capital to their investors. 

CFOs have become a way for firms to raise liquidity without offloading the buyout investment altogether. The market for such deals could swell to more than $30 billion of new volume this year, up 50 per cent from 2025, according to Evercore Inc. 

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Published on June 8, 2026