The private equity firm's stock surged 6.6% to $31.85 after news broke over the weekend that Saudi Arabia Public Investment Fund has agreed to fork over $20 billion to seed a new infrastructure fund. All told, including potential borrowed money, the new fund could invest more than US$100 billion in infrastructure projects, the company said in a statement.
Blackstone signalled its ambitions for such a large fund in January, when its global head of private equity described what it would take to be a meaningful investor in infrastructure. Federal Reserve Bank of Dallas President Robert Kaplan said he is still on board with the US central bank raising short-term interest rates around two more times this year.
Blackstone, co-founded by Trump supporter Stephen Schwarzman, entered a non-binding agreement with Saudi Arabia's Public Investment Fund (PIF) to move forward with this initiative, the Hill reported.
Across its investment strategies, infrastructure investing has been one of Blackstone's most successful and active areas.
Infrastructure in the United States is graded D-plus by the American Society of Civil Engineers.
"We thank PIF for its strong endorsement of the United States and its vote of confidence in our country and Blackstone in making this investment". It also holds unlisted equities, property, loans, bonds and sukuks. A new Board has been appointed, chaired by HRH the Deputy Crown Prince Mohammad bin Salman Al Saud. We do this by using extraordinary people and flexible capital to help companies solve problems. After he was elected, Trump asked the Blackstone billionaire to form a group of business executives that would meet frequently with the president to discuss job creation and economic growth.
This release does not constitute an offer of any Blackstone fund.