Blackstone gathers $5 billion for infrastructure secondaries

Blackstone gathers $5 billion for infrastructure secondaries

In a significant development for the secondaries market, Blackstone has successfully raised $5 billion for its infrastructure secondaries program. This funding round underscores the growing interest in the secondaries industry, particularly in the infrastructure sector.

According to the latest data from the Secondaries Investor 50, the secondaries market has seen a substantial increase in fundraising. In the first half of 2023, $37.2 billion was raised, marking a 29% year-on-year increase [1]. Blackstone's latest fundraise aligns with this upward trend, demonstrating the continued growth and resilience of the secondaries market.

The $5 billion raised by Blackstone will be channeled into its dedicated infrastructure secondaries program. This program focuses on investing in distressed or underperforming infrastructure assets, aiming to generate value through turnaround strategies. By investing in this segment, Blackstone seeks to capitalize on the potential for significant returns in the infrastructure sector.

The secondaries market, as defined by the Secondaries Investor, includes capital raised for dedicated programs investing directly into the secondaries market. This includes various asset classes such as private equity, real estate, and infrastructure [1]. Blackstone's focus on infrastructure secondaries is a strategic move, given the sector's potential for high returns and the increasing demand for infrastructure investments.

As the secondaries market continues to evolve, firms like Blackstone are playing a pivotal role in shaping its future. Their ability to raise substantial capital underscores the confidence investors have in the potential of this market segment. The ongoing fundraising trends, as highlighted by the Secondaries Investor 50, suggest a robust and promising future for secondaries investments.

References:
[1] https://www.secondariesinvestor.com/top-secondaries-firms/