Secondaries

Once a niche market, secondary private equity has become a more mature asset class and an important source of liquidity for private equity funds.

Understanding Secondaries

Growing Market

In 2000, secondary deals executed globally totaled $1.8 billion. In 2018, the market totaled $74 billion, a thirty-five-fold increase. As primary commitments rise, there could be room for even more growth within the secondaries market.

Source: Greenhill Cognet. As of 12/31/2019. There is no guarantee any trend depicted will continue.

Earlier Returns of Capital

Unlike primary funds, secondary funds buy interests in funds that have mostly completed their investment periods, containing portfolio companies that are already generating cash flow. As a result, secondary funds typically return investor capital sooner because they purchase stakes at later stages in the private equity lifecycle.

For informational purposes only. The above is not meant to be predictive of the performance of any particular fund.

Buying Already Identified Assets

Secondary investors buy interests after the fund has been investing for 6-10 years, meaning that 85%-95% of the assets that will be purchased have already been identified.

Why Secondaries with Blackstone

We are a leading global investor in the alternative asset secondary market. We acquire interests in funds across asset classes, offering liquidity to investors, and co-invest alongside managers globally.

Private Equity

Driving fundamental improvements in businesses over the long term

Real Estate

Real estate has historically offered current income to investors and may appreciate in value over time

Hedge Funds

Hedge funds can be an effective diversfication tool for investors.

Credit

An attractive alternative investment for investors looking for yield


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