Blackstone Group LP's secondaries arm has agreed to buy $3 billion in real-estate fund interests from the California Public Employees' Retirement System, in the biggest transaction of its kind to date.

So-called secondaries involve investors such as pension funds, endowments and wealthy families selling off their investments in private-equity funds before the pools have sold off all their assets.

The deal includes 43 international and domestic funds in Calpers' nonstrategic real estate portfolio. Calpers, the largest U.S. pension fund, has been working to reduce risk and complexity in an investment portfolio worth about $300 billion.

Blackstone established the secondary fund, Strategic Partners Fund Solutions, in 2000. The fund has a long history of real estate deals, having struck some 100 real estate secondary deals since 2001.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

 

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(END) Dow Jones Newswires

November 12, 2015 15:55 ET (20:55 GMT)

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