Blackstone’s latest flagship secondaries fund is in the running to be one of the largest ever.
Strategic Partners Fund IX is targeting $13.5 billion, which would put it third behind Ardian and Lexington Partners in the all-time list. The 2019-vintage SP VIII raised $11.1 billion in the space of 14 months from limited partners such as California State Teachers’ Retirement System and Cathay Life Insurance, which each committed $250 million.
Like its predecessor, SP IX will primarily target portfolios of mature buyout stakes, with smaller allocations to asset classes such as venture capital, mezzanine and distressed, according documents prepared for Minnesota State Board of Investment. The fund “to a lesser extent” will target GP-led deals, primary investments and secondary directs.
Historically, only 5 percent of Strategic Partners’ capital has been invested in competitive, broadly auctioned transactions, the document noted. Between 40-50 percent of deals completed have been with repeat sellers.
Minnesota’s investment council recommended the board approve a $100 million investment in SP IX. It is not clear if the investment was approved.