Blackstone Mulls Tactic to Unleash Cash From Bets on Its Peers

Blackstone Inc. is considering shifting positions from a strategy that bets on other private-markets firms into a new pocket, as a way to unlock profits from those hard-to-exit investments.

The alternative investment manager told potential buyers of secondhand stakes about plans to move a slice of assets from its 2014 GP Stakes fund, according to people familiar with the matter, who asked not to be identified because the talks are private.

The GP Stakes fund has no deadline to return capital and is designed to hold manager interests for the long term.

The deal, known as a strip sale, will ...