The private equity firm, Blackstone Group L.P. (NYSE: BX) made gains upwards of 7% and a $39.11B market cap after news of the firm’s $40B infrastructure investment with the Public Investment Fund (“PIF”) of Saudi Arabia.
According to their press release, “Overall, through the equity in this vehicle and additional debt financing, Blackstone expects to invest in more than $100 billion of infrastructure projects, principally in the United States…. Blackstone’s new program will help the United States address its significant need for infrastructure improvement. United States infrastructure is graded D+ by the American Society of Civil Engineers (ASCE), and the deteriorated state of its infrastructure is estimated to cost each American family $3,400 per year” Something most Americans would be feeling in their bottom line, in addition to having to make due with an old infrastructure. Hamilton E. James, Blackstone’s President, stated, “There is broad agreement that the United States urgently needs to invest in its rapidly aging infrastructure… Blackstone has the talent, scale and experience to be an effective private sector partner in filling the massive infrastructure funding gap.
The highest Blackstone traded at was $43.96 back in May 16 of 2016, let’s see what their Q2 earnings will entail in conjunction with this new infrastructure deal.