Blackstone Group LP (NYSE:BX) stock was up on Monday after the company’s announcement of a new infrastructure investment vehicle and business.
Blackstone Group LP says that it is teaming up with the Public Investment Fund of Saudi Arabia to help launch the new infrastructure investment vehicle. The group will be committing $20 billion to this new fund. BX is expecting another $20 billion to be raised from other investors.
Blackstone Group LP and the Public Investment Fund of Saudi Arabia agreed to start the new infrastructure investment vehicle after a year of negotiations. BX notes that infrastructure investing has been a solid investment strategy for it over the last 15 years with it having invested more than $40 billion in it.
Blackstone Group LP notes that it will be focusing on the United States with its new infrastructure investment vehicle. It says that it plans to invest in more than $100 billion of infrastructure projects and that most of them will be in the U.S.
Blackstone Group LP points out that its investment efforts will help better infrastructure efforts in the U.S. It says that the country’s infrastructure has a D+ grade from the American Society of Civil Engineers. Plans at the Federal level include creating 15 million jobs in the country, while growing its economy, productivity and ability to compete on a global scale.
“Blackstone has the talent, scale and experience to be an effective private sector partner in filling the massive infrastructure funding gap,” Hamilton James, President of Blackstone Group LP, said in a statement. “We thank PIF for its strong endorsement of the United States and its vote of confidence in our country and Blackstone in making this investment.”
BX stock was up 7% as of Monday afternoon and is up 18% year-to-date.
