Blackstone’s Strategic Partners holds final close on $11.1bn

The Blackstone unit has become the first of the big names to wind up fundraising in a likely record year for secondaries.

Strategic Partners has held the final close on its latest secondaries programme, the largest dedicated pool raised for the strategy.

The Blackstone unit raised $11.1 billion for Strategic Partners VIII and related separately managed accounts, according to a statement. The fund came to market in May last year targeting $8 billion, Secondaries Investor reported.

“We are proud of the platform we have created and, coupled with our deep transaction experience and industry leading private equity portfolio, are well positioned to continue to build off this solid success,” Verdun Perry, senior managing director and Strategic Partners’ global head, said.

Fund VIII held a $3.4 billion first close in the fourth quarter of last year. The California State Teachers’ Retirement SystemFubon Life Insurance and Cathay Life Insurance are among investors in the fund.

Its 2015-vintage predecessor Strategic Partners VII raised $7.5 billion against a target of $5.75 billion in 2017. The fund delivered a net internal rate of return of 35 percent and a multiple of 1.4x as of the end of March, according to Blackstone’s first-quarter results.

The $11.1 billion haul surpasses Ardian‘s 2015-vintage ASF VII which comprised $10.8 billion of dedicated secondaries capital, and Lexington Partners‘ 2014-vintage Capital Partners VIII which amassed $10.1 billion.

Strategic Partners brought in $94 million in performance fees in the fourth quarter of last year, $28 million more than it accrued in the same quarter of 2017. Strategic Partners’ gross returns grew 5.1 percent in the fourth quarter and 18.6 percent for full-year 2018.

Secondaries funds were targeting at least $84.85 billion as of the second quarter, according to Secondaries Investor data. Ardian, Lexington, Coller Capital, Goldman Sachs Asset Management and HarbourVest Partners are among the firms with flagship funds in market.

– Adam Le contributed to this report.