Blackstone Acquires $5B NYC Pension Private Equity Portfolio

Blackstone's Strategic Partners has acquired a $5 billion private equity portfolio from the New York City Retirement Systems, marking one of the largest secondary market transactions by a US public pension. The portfolio includes approximately 450 commitments across 125 funds managed by 75 general partners and was sold as part of a strategic realignment rather than liquidity needs. The transaction was advised by Evercore with legal counsel from Morgan Lewis, and it reflects a broader trend of increased secondary market activity amid slower M&A exits and higher interest rates. New York City's pension funds have underperformed compared to peers, with 2024 returns between 4.3% and 5.4%, lagging behind CalPERS and CalSTRS. The deal also highlights Blackstone's growing dominance in the secondary market, supported by positive analyst sentiment forecasting an 8.89% upside in Blackstone's stock price. Overall, the sale signals a reevaluation of private equity exposure by one of the largest US public pension systems.