Blackstone and Public Investment Fund (PIF) of Saudi Arabia have signed a memorandum of understanding in relation to the launch of a new investment vehicle dedicated to infrastructure with an anchor US$20 billion contribution by PIF.

Blackstone anticipates that the programme will have US$40 billion in total equity commitments in a permanent capital vehicle, including US$20 billion to be raised from other investors.

The MoU is non-binding and the parties will continue their negotiation to agree definitive documentation.

Overall, through the equity in this vehicle and additional debt financing, Blackstone expects to invest in more than US$100 billion of infrastructure projects, principally in the United States.

This vehicle launches a new business for Blackstone with PIF as a strategic partner. This collaboration between PIF and Blackstone is the culmination of a year’s discussions between the two institutions, which began in May 2016.

H.E. Yasir Al Rumayyan, managing director of the Public Investment Fund of the Kingdom of Saudi Arabia, says: “This potential investment reflects our positive views around the ambitious infrastructure initiatives being undertaken in the United States as announced by President Trump.”

M. Klein and Company advised PIF on the creation of this strategic partnership with Blackstone.