Blackstone targets $3bn for real estate secondaries fund

Blackstone is planning to raise a minimum of $3 billion for a new real estate secondaries fund, according to Bloomberg. The fund, overseen by Blackstone’s Strategic Partners secondaries business, aims to purchase discounted stakes in existing property vehicles due to ongoing liquidity pressures in the sector. The fund will acquire interests in core real estate funds from asset managers and limited partners at prices lower than their net asset value.

It will primarily focus on vehicles holding data centers, rental housing, and industrial properties.

Strategic Partners recently raised $2.6 billion for its previous real estate secondaries fund in 2023. The current fundraising effort is taking place amid high borrowing costs, depressed property valuations, and reduced transaction activity that have strained liquidity in real estate markets. These conditions have fueled demand for secondary transactions, enabling investors to exit their existing holdings while providing buyers with opportunities to acquire assets at reduced valuations.

In 2025, GP-led real estate secondaries transactions amounted to $14.5 billion, marking a 60% increase from the previous year, as reported by Ares Management. The firm anticipates volumes to double in the coming years, while continuation vehicles are being utilized by managers to retain exposure to assets in sectors such as logistics, data centers, and senior housing.