Blackstone Group, the worlds largest private-equity
firm, plans to invest more than $100 billion in infrastructure
projects based mainly in the United States.
The firm announced May 20 that it aims to raise $40
billion in equity for a new infrastructure fund, plus use debt
to invest in the program. The Public Investment Fund of Saudi
Arabia may contribute $20 billion to anchor the new pool, with
Blackstone seeking the same amount of commitments from other
This potential investment reflects our positive views
around the ambitious infrastructure initiatives being
undertaken in the United States as announced by President
Trump, said H.E. Yasir Al Rumayyan, managing director of
Saudi Arabias Public Investment Fund, in the statement
released by Blackstone.
President Donald Trump, who chose Saudi Arabia as the first
stop on his first foreign trip since taking office, has made
modernizing U.S. infrastructure one of his top priorities. As much as $2 trillion of
funding from domestic and international investors is needed to
improve its deteriorated state, according to Blackstones
statement, made the same day Trump arrived to Riyadh.
There is broad agreement that the United States
urgently needs to invest in its rapidly aging
infrastructure, said Blackstone President Hamilton James.
This will create well-paying American jobs and will lay
the foundation for stronger long-term economic
The American Society of Civil Engineers has graded U.S. infrastructure D+, underscoring the
need for significant investment.
Blackstone stated that it has been talking with Saudi
Arabias sovereign fund for the past year to invest in the
new program. While the potential partners have executed a
memorandum of understanding for their collaboration, a
definitive agreement is still being negotiated, according to
the May 20 statement.
For the Saudis, Al Rumayyan said the partnership would be an
opportunity to achieve long-term returns given historical