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THE WALL STREET JOURNAL

Saudi Arabia’s $20 billion wager with

Blackstone is record-sized bet on U.S.
infrastructure
Published: May 21, 2017 8:28 p.m. ET

21

Trump’s infrastructure push is cited by Saudis as they make huge commitment toward Blackstone’s
$40 billion goal

QUOTE
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CEO and co-founder of Blackstone Stephen Schwarzman participates in a U.S.-Africa leaders another strong year for
summit in 2014. Blackstone has created a new infrastructure fund that just drew Saudi stocks, JP Morgan says
Arabian investment.
U.S. tariffs on China
By Saudi Arabia joined the parade of investors into U.S. public works by pledging a have oddly little effect
RYAN
record investment with Blackstone Group LP. on import prices. What’s
DEZEMBER going on?

The country’s Public Investment Fund agreed to commit $20 billion to

Blackstone’s BX, +0.65%   new infrastructure fund in the latest push around the
world by large investors to buy up airports, pipelines and other public projects,
particularly in the U.S.

Blackstone said Saturday the kingdom’s money would seed an investment fund
that the New York private-equity giant hopes will reach $40 billion and have
spending power of up to $100 billion once debt is added to the mix.

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The commitment shows how Blackstone continues to distance itself from Wall
Street rivals by raising ever larger sums from investors like sovereign-wealth
funds, public pensions and rich families. With assets of $368.2 billion as of March
31, it manages nearly twice as much as its closest competitor, Apollo Global
Management LLC, and each of Blackstone’s four platforms—real estate, private-
equity, hedge funds and credit—are among the largest investing businesses of
their kind.

Read: Trump, Saudi Arabia, other Gulf states sign pacts worth $350 billion
meant to counterbalance Iran

And: Saudi Arabia, U.A.E. offer $100 million to World Bank’s Women
Entrepreneurs Fund proposed by Ivanka Trump

Saudi Arabia’s planned $20 billion investment alone would be about 25% larger
than the biggest infrastructure fund ever raised, a $15.8 billion pool Global
Infrastructure Partners completed earlier this year, according to data from
industry tracker Preqin. Global Infrastructure Partners, or GIP, is also based in
New York and its chief executive, Adebayo Ogunlesi—like Blackstone Chief
Executive Stephen Schwarzman—is one of the business leaders President Donald
Trump has named to a presidential advisory group.

An expanded version of this report appears on WSJ.com.

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Charles Vo Leader · 22 May, 2017

These countries such as Saudi Arabia and Japan investing in infrastructure is another
way for Trump to fund these infrastructure projects without going through Congress.
 Considering Saudi Arabia and Japan basically just recycle their dollars into treasuries
anyway, they are now opting to go the infrastructure route which should bring
American construction jobs.  Will these infrastructure projects bring a ROI greater
than treasuries which are still near historic lows?  I think so unless you think America
is dead as a country.  People will pay to use this infrastructure.

This is ingenious.  Trump is a heck of a dealmaker.

Reply · Share ·

paul hughes Leader · 22 May, 2017

It is so stupid to sell our infrastructure to foreigners, especially friends like the Saudis.
Reply · Share · 1 Like ·

Satya Banerji · 22 May, 2017

Very Curious ! Blackstone just laid o around a 1000 Employees around the world
including US from its new Acquisition Aeon. Wonder What Trump has to say to that.
Reply · Share ·

Ron Beyer · 22 May, 2017

So in other words, you like the idea of privatizing everything so that you and you
fellow citizens are no longer in control of the infrastructure, have no say in it, and
have to pay to use it?  If so, then it goes without saying that you have no sense of
community, no fellowship with the people in it and are content to be just a consumer.
Reply · Share ·

Robert Stewart Contributor · 22 May, 2017

At least some of our money paid for oil will come back to US infrastructure. I hope
Trump got a lower interest rate than government bonds are paying.  It will be nice to
see infrastructure improvements without the tax payers getting hit for the bill. Toll
road and use taxes will hit those who use the roads and airports to repay the loans.
Reply · Share ·

cale costello · 22 May, 2017 Robert Stewart

Robert Stewart  we only get 10% of our imported oil from them, and
imported oil makes up only 25% of our nations consumption, we could lose
them tomorrow and it would barely cause a hiccup. we can make up that
2.5% loss within a month or two re-opening some rigs that were closed in the
past few years due to low oil prices. 

Reply · Share ·

J.Q. Public · 22 May, 2017

Kudos, new ways of draining the wealth right out of America.  We won't even own our
own country anymore.
Reply · Share ·

Bull Market Leader · 22 May, 2017 J.Q. Public

J.Q. Public We don't own it now.

Reply · Share ·

Sheldon Stone y Leader · 22 May, 2017

It's just a portfolio diversi cation for the Saudi's and a way to suck up to fraudster
trump. Quid pro quo for selling military equipment and not raising human rights
issues. If it helps jump start infrastructure, all good.
Reply · Share ·

Frank Beaullieu Contributor · 22 May, 2017 Sheldon Stone y

Robert Stewart Sheldon Stone y The panel discussion did not mention

anything about CNN being 98% biased against Drumpf.

https://today.law.harvard.edu/fake-news-giving-reality-run-money/

Fake news is giving reality a run for its money - Harvard Law Today
That "fake news" is both pervasive and dangerous is no longer in doubt. How best
to respond, however,...

TODAY.LAW.HARVARD.EDU

Reply · Share ·

Robert Stewart Contributor · 22 May, 2017 Sheldon Stone y

Sheldon Stone y  You watch too much fake news, Harvard Law just analyzed
bias of networks, CNN 98% biased against Trump. This is not fake news like
CNN puts out.
The only network that came out at 50/50 was Fox..
Reply · Share ·

John Marshall Leader · 22 May, 2017

They can't wait to buy some of the roads and bridges your tax dollars built which
Trump hopes to put up for sale and then sell them back to you in tolls. 
Reply · Share ·

Show 5 previous replies

Robert Stewart Contributor · 22 May, 2017 John Marshall

John Marshall Fred Holman  Read the article, this is repair, replace of bridges
and new toll roads and use fees at airports for renovations. With so many
freeloaders on US socialism programs the tax payers can't foot this bill. Most
of these are in major cities so use taxes will make it so the users pay for the
roads they need to travel.  
Reply · Share ·

John Marshall Leader · 22 May, 2017 John Marshall

Fred Holman John Marshall

He should worry about just being president next year, or maybe hope that he
won't be.  
Reply · Share ·

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