New York, May 2025 – The New York City Retirement Systems has finalized a $5 billion sale of a portion of its private equity portfolio to Blackstone Inc., marking one of the largest limited partner (LP)-led secondary transactions ever completed with a single buyer.
The transaction is part of a broader strategic realignment of the pension system’s investment portfolio and not a response to short-term liquidity needs, according to people familiar with the deal. The move underscores a growing trend among institutional investors to actively manage and rebalance their private market holdings to enhance performance, reduce complexity, and align with long-term objectives.
The sale was executed through Blackstone’s Strategic Partners unit, a major player in the secondary market for private equity, known for acquiring stakes in funds from other investors. The firm manages over $67 billion in secondary and liquidity solutions capital and has previously completed large-scale acquisitions from institutional sellers, though the size of the New York City transaction places it among the largest ever for a single buyer.
The New York City Retirement Systems, which manages assets on behalf of over 700,000 public workers, retirees, and their beneficiaries, has been re-evaluating its exposure across various asset classes. As of 2024, the pension system had more than $250 billion in assets under management, including substantial allocations to private equity, real estate, and other alternatives.
Industry experts say the scale and structure of the transaction reflect a maturing secondary market, where public pensions and other large LPs increasingly use the secondary market not just for liquidity, but also for proactive portfolio construction and risk management.
Blackstone declined to disclose specific fund names or vintage years involved in the transaction, while the New York City Comptroller’s Office, which oversees the pension system’s investment strategy, has described the sale as a tool to optimize the system’s private equity exposure in light of current market conditions and future allocation plans.
The transaction is seen as a bellwether for other large LPs considering secondary sales as a strategic lever in response to market shifts, regulatory changes, and evolving beneficiary obligations.
