Blaxkstone Buys $5 Billion NYC Pensions in PE Secondaries

New York City (NYC) Comptroller Brad Lander and trustees of the five public pension systems on Tuesday announced the successful completion of a landmark $5 billion private equity secondary sale to Blackstone across the City’s systems.

This transaction, initiated in December 2024 and finalised this month, represents one of the nation’s largest ever pension-led secondary sales, which attracted interest from more than 80 potential bidders.

Importantly, the sale was not liquidity driven, but rather a strategic realignment of the NYC pension systems’ private equity portfolio to position it for strong long-term performance across a core group of asset managers.

The sale also reflects the NYC pension systems’ proactive approach to portfolio management and value creation. To ensure maximum value and transparency, the Comptroller’s Office conducted a broad and competitive auction process, attracting interest from over 80 potential bidders. 

Brad Lander said that this secondary sale is a win for NYC’s public servants and retirees in an uncertain market.

“By streamlining our portfolios, we are ensuring the long-term health of these pension systems while maintaining our commitment to delivering retirement security for over 750,000 teachers, firefighters, sanitation workers, police officers, and other public employees,” he said.

The completed sale included approximately 75 private equity managers, over 125 distinct funds, and 450 individual commitments. Evercore served as advisor on the transaction, while Morgan Lewis served as legal counsel. 

The NYC retirement systems comprise the City’s five public pension funds (the NYC Teachers’ Retirement System, Employees’ Retirement System, Police Pension Fund, Fire Pension Fund, and Board of Education Retirement System), and are collectively the third largest public pension system in the nation, valued at approximately $279.14 billion in assets under management as of 31 March 2025.

In addition to Comptroller Lander, trustees of the New York City retirement systems are Teachers’ Retirement System of the City of New York (TRS): Mayor Eric Adams’ Appointee Bryan Berge, Director, Mayor’s Office of Pension and Investments; Chancellor’s Representative, Greg Faulkner, New York City Public Schools Panel for Educational Policy; and Thomas Brown (Chair), Victoria Lee, and Christina McGrath, all of the United Federation of Teachers.

Deal Volumes in Secondaries Market

Transaction volume in the secondaries market has increased recently, as private equity exits have slowed and deal activity has come to a standstill. As portfolio companies are being held for longer, limited partners are turning to secondaries to, in some cases, access liquidity by offloading their stakes in private equity funds.

Other private-equity investors, including the endowments of both Harvard University and Yale University, are also reportedly shopping portfolios in the secondary market, as they face cuts to federal funding and other challenges.