Blackstone's headquarters in Midtown Manhattan
NEW YORK CITY–Blackstone is expected to announce shortly that it has closed on nearly $5 billion in commitments for a $40 billion infrastructure investment fund it first announced last May.
By the end of this week, the private equity giant expects that at least $2.5 billion will have been committed from public pension funds and other institutional investors, according to news reports in the Financial Times and Bloomberg, which cited anonymous sources.
At $5 billion, the fund's investment is a far cry from the original $40 billion that Blackstone envisioned. However sources have told the two publications that Blackstone expects several closings for the fund, called Blackstone Infrastructure Partners, during the first phase of fundraising.
When Blackstone made its initial announcement for the fund, the Public Investment Fund of Saudi Arabia pledged to contribute $20 billion if every dollar was matched against commitments from other investors.
A National Issue
Infrastructure investment has been an issue highlighted by President Trump, who earlier this year announced the details of a $1.5 trillion plan that would leverage $200 billion in federal money with local and state tax dollars and private investment. The $200 billion is to be divvied up into several categories: $100 billion as incentives to local government entities; $20 billion to “projects of national significance”; $50 billion to rural block grants and the remainder to support existing infrastructure-related programs.
In general, there is a lot of capital and appetite from the private sector for infrastructure investment, Kevin Wayer, International Director and Co-President of JLL's Public Institutions Group, told GlobeSt.com when the White House plan was unfurled.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
