Over the weekend, while President Trump was making an official visit to Saudi Arabia, Blackstone and the Public Investment Fund of Saudi Arabia (PIF) signed a memorandum of understanding outlining the framework for a new infrastructure investment fund to be launched with a $20 billion investment from PIF.
Blackstone said it expects to raise another $20 billion for the program from other investors.
The memorandum is non-binding and the parties will continue to negotiate a definitive agreement.
If the new fund comes to fruition, Blackstone expects to invest in infrastructure projects valued at more than $100 billion, principally through the equity in this vehicle and additional debt financing in U.S. projects. Blackstone said it expects the amount raised would equal what the private equity firm has invested in infrastructure over the last 15 years.