The dual-track process is a common option for private equity firms looking to exit an investment.

Blackstone Group LP (BX - Get Report) is readying for a sale or initial public offering of its Vivint smart home technology app in a deal that could bring in a $3 billion win for the asset management firm, the Wall Street Journal reported.

Insiders said Blackstone recently hosted investment banks pitching a dual-track process that keeps both IPO and sale options opened. A deal could put Vivint at a valuation of $6 billion with debt, totaling about three times what Blackstone paid for the app in 2012.

Vivint specializes in selling smart locks, security cameras and burglary-detection technology, positioning the business well as demand for such smart home services skyrockets.

Private equity firms such as Blackstone have recently enjoyed this lucrative surge in demand. Apollo Global Management LLC (APO - Get Report) last year bought Vivint competitor ADT Corp. in a $7 billion deal and is said to be preparing the home security company for an IPO valuing it at well over $15 billion including debt.

The dual-track process is a common option for private equity firms looking to exit an investment, as it allows the firm added leverage in striking a deal when both a sale and an IPO are on the table. The preference is typically a full sale, as the IPO market has recently spiked in volatility, the Journal said.

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