Blackstone Inc. is planning to sell more than $2 billion of its holdings in private investment funds. The firm intends to package these stakes into bonds for investors, creating a collateralized fund obligation. This move represents one of the largest transactions of its kind to hit the market in recent years.

Marketing efforts are currently underway for this deal, which bundles exposure to various leveraged buyout funds. By converting these private equity interests into tradable debt, the alternative asset manager can unlock liquidity from assets that are typically locked up for years. This structure allows institutional investors to gain exposure to private equity via a bond format.

People familiar with the matter indicated that the deal focuses on these specific buyout fund stakes. This strategy signals a push to monetize large positions in a complex market environment. The transaction would move a massive amount of private fund exposure off the balance sheet through a collateralized fund obligation.