Blackstone Inc.
(NYSE:BX) is weighing a transaction that could convert more than $2 billion in private equity fund interests into bond-like securities, a structure designed to return cash to investors as traditional buyout exits remain sluggish.
The proposed deal would be among the larger fund-stake securitizations to hit the market.
This puts demand for older private equity exposure in the spotlight.
People familiar with the discussions reported that Blackstone has been sounding out investors about a collateralized fund obligation that would pool stakes in leveraged buyout funds and sell slices of the risk through bonds.
